Korea Development Bank 424B2 Prospectus for primary offering

Filed Pursuant to Rule 424(b)(2)
Registration No. 333-280021

PROSPECTUS SUPPLEMENT

(To Prospectus Dated June 17, 2024)

The Korea Development Bank

US$900,000,000 4.625% Notes due 2028

US$1,200,000,000 4.875% Notes due 2030

US$900,000,000 Floating Rate Notes due 2030

Our US$900,000,000 aggregate principal amount of notes due 2028 (the “2028 Notes”) will bear interest at a rate of 4.625% per annum, our US$1,200,000,000 aggregate principal amount of notes due 2030 (the “2030 Notes”) will bear interest at a rate of 4.875% per annum and our US$900,000,000 aggregate principal amount of floating rate notes due 2030 (the “Floating Rate Notes,” and together with the 2028 Notes and the 2030 Notes, the “Notes”) will bear interest at a rate equal to Compounded Daily SOFR (as defined herein) plus 0.760% per annum.

Interest on the 2028 Notes and the 2030 Notes is payable semi-annually in arrear on February 3 and August 3 of each year, beginning on August 3, 2025. Interest on the Floating Rate Notes is payable quarterly in arrear on February 3, May 3, August 3 and November 3 of each year, subject in each case to adjustment in accordance with the Modified Following Business Day Convention, as explained herein (each, a “Floating Rate Notes Interest Payment Date”). The first interest payment on the Floating Rate Notes will be made on the Floating Rate Notes Interest Payment Date falling on or nearest to May 3, 2025 in respect of the period from (and including) February 3, 2025 to (but excluding) the Floating Rates Notes Interest Payment Date falling on or nearest to May 3, 2025. The 2028 Notes will mature on February 3, 2028, the 2030 Notes will mature on February 3, 2030 and the Floating Rate Notes will mature on the Floating Rate Notes Interest Payment Date falling on or nearest to February 3, 2030.

The Notes will be issued in minimum denominations of US$200,000 principal amount and integral multiples of US$1,000 in excess thereof. The Notes will be represented by one or more global securities registered in the name of a nominee of The Depository Trust Company (“DTC”), as depositary.

The payment of interest and the repayment of principal on the Notes will not be guaranteed by the Government (as defined herein).

Neither the Securities and Exchange Commission nor any state securities commission has approved or disapproved of these securities or determined if this prospectus supplement or the accompanying prospectus is truthful or complete. Any representation to the contrary is a criminal offense.

	2028 Notes				2030 Notes				Floating Rate Notes
	Per Note		Total		Per Note		Total		Per Note		Total
Public offering price		99.765%	US$	897,885,000		99.829%	US$	1,197,948,000		100.000%	US$	900,000,000
Underwriting discounts		0.200%	US$	1,800,000		0.200%	US$	2,400,000		0.200%	US$	1,800,000
Proceeds to us, before expenses		99.565%	US$	896,085,000		99.629%	US$	1,195,548,000		99.800%	US$	898,200,000

In addition to the initial public offering price, you will have to pay for accrued interest, if any, from and including February 3, 2025.

Applications have been made to the Singapore Exchange Securities Trading Limited (the “SGX-ST”) for the listing and quotation of the Notes on the SGX-ST. The SGX-ST assumes no responsibility for the correctness of any of the statements made, opinions expressed or reports contained in this prospectus supplement and the accompanying prospectus. Approval in-principle from, admission to the Official List of, and listing and quotation of the Notes on, the SGX-ST are not to be taken as an indication of the merits of us or the Notes. Currently, there is no public market for the Notes. In addition, applications will be made to list the Notes on the Luxembourg Stock Exchange and to have the Notes admitted to trading on the Euro MTF Market of the Luxembourg Stock Exchange. Applications will also be made for listing of the Notes to the International Securities Market of the London Stock Exchange. No assurance can be given that such applications will be approved or that such listings will be maintained.

We expect to make delivery of the Notes to investors through the book-entry facilities of DTC on or about February 3, 2025.

Joint Bookrunners and Lead Managers

BofA Securities
	Citigroup
		Crédit Agricole CIB
			MUFG
				Standard Chartered Bank

Prospectus Supplement Dated January 23, 2025

You should rely only on the information contained in or incorporated by reference in this prospectus supplement and the accompanying prospectus. We have not authorized anyone to provide you with different information. We are not making an offer to sell these securities in any state or jurisdiction where the offer or sale is not permitted.

TABLE OF CONTENTS

Prospectus Supplement

	Page
Summary of the Offering		S-6
Use of Proceeds		S-8
Recent Developments		S-9
Description of the Notes		S-151
Clearance and Settlement		S-158
Taxation		S-161
Underwriting		S-162
Legal Matters		S-170
Official Statements and Documents		S-170
General Information		S-170

Prospectus

	Page
CERTAIN DEFINED TERMS AND CONVENTIONS		1
USE OF PROCEEDS		2
THE KOREA DEVELOPMENT BANK		3
Overview		3
Capitalization		5
Business		6
Selected Financial Statement Data		8
Operations		15
Sources of Funds		22
Debt		24
Overseas Operations		25
Property		26
Directors and Management; Employees		26
Tables and Supplementary Information		27
Financial Statements and the Auditors		34
THE REPUBLIC OF KOREA		171
Land and History		171
Government and Politics		173
The Economy		176
Principal Sectors of the Economy		184
The Financial System		192
Monetary Policy		197
Balance of Payments and Foreign Trade		201
Government Finance		208
Debt		211
Tables and Supplementary Information		214

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	Page
DESCRIPTION OF THE SECURITIES		217
Description of Debt Securities		217
Description of Warrants		224
Terms Applicable to Debt Securities and Warrants		224
Description of Guarantees to be Issued by Us		225
Description of Guarantees to be Issued by The Republic of Korea		226
LIMITATIONS ON ISSUANCE OF BEARER DEBT SECURITIES AND BEARER WARRANTS		227
TAXATION		228
Korean Taxation		228
U.S. Federal Income Tax Considerations		230
PLAN OF DISTRIBUTION		239
LEGAL MATTERS		240
AUTHORIZED REPRESENTATIVES IN THE UNITED STATES		240
OFFICIAL STATEMENTS AND DOCUMENTS		240
EXPERTS		240
FORWARD-LOOKING STATEMENTS		241
FURTHER INFORMATION		243

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Certain Defined Terms

All references to “we” or “us” mean The Korea Development Bank. All references to “Korea” or the “Republic” contained in this prospectus supplement mean The Republic of Korea. All references to the “Government” mean the government of Korea. Terms used but not defined in this prospectus supplement shall have the same meanings given to them in the accompanying prospectus.

Our separate financial information as of December 31, 2023, June 30, 2024 and September 30, 2024 and for the six months ended June 30, 2023 and 2024 and the nine months ended September 30, 2023 and 2024 included in this prospectus supplement has been prepared in accordance with International Financial Reporting Standards as adopted in Korea (“Korean IFRS” or “K-IFRS”). References in this prospectus supplement to “separate” financial statements and information are to financial statements and information prepared on a non-consolidated basis. Unless specified otherwise, our financial and other information included in this prospectus supplement is presented on a separate basis in accordance with Korean IFRS and does not include such information with respect to our subsidiaries.

In this prospectus supplement and the accompanying prospectus, where information has been provided in units of thousands, millions or billions, such amounts have been rounded up or down. Accordingly, actual numbers may differ from those contained herein due to rounding. Any discrepancy between the stated total amount and the actual sum of the itemized amounts listed in a table is due to rounding.

IMPORTANT NOTICES

UK MiFIR product governance / Professional investors and ECPs only target market — Solely for the purposes of the manufacturer’s product approval process, the target market assessment in respect of the Notes has led to the conclusion that: (i) the target market for the Notes is eligible counterparties, as defined in the FCA Handbook Conduct of Business Sourcebook, and professional clients, each as defined in Regulation (EU) No 600/2014 as it forms part of domestic law by virtue of the European Union (Withdrawal) Act 2018 (“UK MiFIR”); and (ii) all channels for distribution of the Notes to eligible counterparties and professional clients are appropriate. Any person subsequently offering, selling or recommending the Notes (a “distributor”) should take into consideration the manufacturer’s target market assessment; however, a distributor subject to the FCA Handbook Product Intervention and Product Governance Sourcebook (the “UK MiFIR Product Governance Rules”) is responsible for undertaking its own target market assessment in respect of the Notes (by either adopting or refining the manufacturer’s target market assessment) and determining appropriate distribution channels.

Additional Information

The information in this prospectus supplement is in addition to the information contained in our prospectus dated June 17, 2024. The accompanying prospectus contains information regarding us and Korea, as well as a description of some terms of the Notes. You can find further information regarding us, Korea and the Notes in registration statement no. 333-280021, as amended, relating to our debt securities, with or without warrants, and guarantees, which is on file with the U.S. Securities and Exchange Commission.

We are Responsible for the Accuracy of the Information in this Document

We are responsible for the accuracy of the information in this document and confirm that to the best of our knowledge we have included all facts that should be included not to mislead potential investors. The SGX-ST assumes no responsibility for the correctness of any of the statements made, opinions expressed or reports

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contained in this prospectus supplement and the accompanying prospectus. Approval in-principle from, admission to the Official List of, and listing and quotation of the Notes on, the SGX-ST are not to be taken as an indication of the merits of us or the Notes.

Not an Offer if Prohibited by Law

The distribution of this prospectus supplement and the accompanying prospectus, and the offer of the Notes, may be legally restricted in some countries. If you wish to distribute this prospectus supplement or the accompanying prospectus, you should observe any restrictions. This prospectus supplement and the accompanying prospectus should not be considered an offer and should not be used to make an offer, in any state or country which prohibits the offering.

The Notes may not be offered or sold in Korea, directly or indirectly, or to any resident of Korea, except as permitted by Korean law. For more information, see “Underwriting—Foreign Selling Restrictions.”

Information Presented Accurate as of Date of Document

This prospectus supplement and the accompanying prospectus are the only documents on which you should rely for information about the offering. We have authorized no one to provide you with different information. You should not assume that the information in this prospectus supplement or the accompanying prospectus is accurate as of any date other than the date on the front of each document.

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IMPORTANT NOTICE TO PROSPECTIVE INVESTORS

Prospective investors should be aware that certain intermediaries in the context of this offering of the Notes, including certain Underwriters (as defined below), are “capital market intermediaries” (“CMIs”) subject to Paragraph 21 of the SFC Code of Conduct for Persons Licensed by or Registered with the Securities and Futures Commission of Hong Kong (the “SFC Code”). This notice to prospective investors is a summary of certain obligations the SFC Code imposes on such CMIs, which require the attention and cooperation of prospective investors. Certain CMIs may also be acting as “overall coordinators” (“OCs”) for this offering and are subject to additional requirements under the SFC Code.

Prospective investors who are the directors, employees or major shareholders of The Korea Development Bank (the “Issuer”), a CMI or its group companies would be considered under the SFC Code as having an association (“Association”) with the Issuer, the CMI or the relevant group company. Prospective investors associated with the Issuer or any CMI (including its group companies) should specifically disclose this when placing an order for the Notes and should disclose, at the same time, if such orders may negatively impact the price discovery process in relation to this offering. Prospective investors who do not disclose their Associations are hereby deemed not to be so associated. Where prospective investors disclose their Associations but do not disclose that such order may negatively impact the price discovery process in relation to this offering, such order is hereby deemed not to negatively impact the price discovery process in relation to this offering.

Prospective investors should ensure, and by placing an order prospective investors are deemed to confirm, that orders placed are bona fide, are not inflated and do not constitute duplicated orders (i.e., two or more corresponding or identical orders placed via two or more CMIs). If a prospective investor is an asset management arm affiliated with any Underwriter, such prospective investor should indicate when placing an order if it is for a fund or portfolio where the Underwriter or its group company has more than a 50% interest, in which case it will be classified as a “proprietary order” and subject to appropriate handling by CMIs in accordance with the SFC Code and should disclose, at the same time, if such “proprietary order” may negatively impact the price discovery process in relation to this offering. Prospective investors who do not indicate this information when placing an order are hereby deemed to confirm that their order is not a “proprietary order”. If a prospective investor is otherwise affiliated with any Underwriter, such that its order may be considered to be a “proprietary order” (pursuant to the SFC Code), such prospective investor should indicate to the relevant Underwriter when placing such order. Prospective investors who do not indicate this information when placing an order are hereby deemed to confirm that their order is not a “proprietary order”. Where prospective investors disclose such information but do not disclose that such “proprietary order” may negatively impact the price discovery process in relation to this offering, such “proprietary order” is hereby deemed not to negatively impact the price discovery process in relation to this offering.

Prospective investors should be aware that certain information may be disclosed by CMIs (including private banks) which is personal and/or confidential in nature to the prospective investor. By placing an order, prospective investors are deemed to have understood and consented to the collection, disclosure, use and transfer of such information by the Underwriters and/or any other third parties as may be required by the SFC Code, including to the Issuer, any OCs, relevant regulators and/or any other third parties as may be required by the SFC Code, it being understood and agreed that such information shall only be used for the purpose of complying with the SFC Code, during the bookbuilding process for this offering. Failure to provide such information may result in that order being rejected.

S-5

SUMMARY OF THE OFFERING

This summary highlights selected information from this prospectus supplement and the accompanying prospectus and may not contain all of the information that is important to you. To understand the terms of our Notes, you should carefully read this prospectus supplement and the accompanying prospectus.

The Notes

We are offering US$900,000,000 aggregate principal amount of 4.625% notes due February 3, 2028 (the “2028 Notes”), US$1,200,000,000 aggregate principal amount of 4.875% notes due February 3, 2030 (the “2030 Notes”) and US$900,000,000 aggregate principal amount of floating rate notes due on the Floating Rate Notes Interest Payment Date (as defined below) falling on or nearest to February 3, 2030 (the “Floating Rate Notes,” and together with the 2028 Notes and the 2030 Notes, the “Notes”).

The 2028 Notes will bear interest at a rate of 4.625% per annum and the 2030 Notes will bear interest at a rate of 4.875% per annum, in each case payable semi-annually in arrear on February 3 and August 3 of each year, beginning on August 3, 2025. Interest on the 2028 Notes and the 2030 Notes will be computed based on a 360-day year consisting of twelve 30-day months. See “Description of the Notes—Payment of Principal and Interest—Fixed Rate Notes.”

The Floating Rate Notes will bear interest at a rate equal to Compounded Daily SOFR (as defined herein) plus 0.760% per annum, payable quarterly in arrear on February 3, May 3, August 3 and November 3 of each year, subject in each case to adjustment in accordance with the Modified Following Business Day Convention, as explained herein (each, a “Floating Rate Notes Interest Payment Date”). The first interest payment on the Floating Rate Notes will be made on the Floating Rate Notes Interest Payment Date falling on or nearest to May 3, 2025 in respect of the period from (and including) February 3, 2025 to (but excluding) the Floating Rate Notes Interest Payment Date falling on or nearest to May 3, 2025. Interest on the Floating Rate Notes will accrue from (and including) February 3, 2025 and will be computed on the basis of the actual number of days in the applicable Floating Rate Notes Interest Period (as defined herein) divided by 360. See “Description of the Notes—Payment of Principal and Interest—Floating Rate Notes”.

The Notes will be issued in minimum denominations of US$200,000 principal amount and integral multiples of US$1,000 in excess thereof. The Notes will be represented by one or more global securities registered in the name of a nominee of The Depository Trust Company (“DTC”), as depositary.

The payment of interest and the repayment of principal on the Notes will not be guaranteed by the Government.

We do not have any right to redeem the Notes prior to maturity.

Listing

Applications have been made to the SGX-ST for the listing and quotation of the Notes on the SGX-ST. Settlement of the Notes is not conditioned on obtaining the listing. For so long as the Notes are listed on the SGX-ST and the rules of the SGX-ST so require, the Notes, if traded on the SGX-ST, will be traded in a minimum board lot size of S$200,000 (or its equivalent in foreign currencies). Accordingly, the Notes, if traded on the SGX-ST, will be traded in a minimum board lot size of US$200,000.

S-6

In addition, applications will be made to list the Notes on the Luxembourg Stock Exchange and to have the Notes admitted to trading on the Euro MTF Market of the Luxembourg Stock Exchange. Applications will also be made for listing of the Notes to the International Securities Market of the London Stock Exchange. No assurance can be given that such applications will be approved or that such listings will be maintained.

Form and Settlement

We will issue each series of the Notes in the form of one or more fully registered global notes, registered in the name of a nominee of DTC, as depositary. Except as described in the accompanying prospectus under “Description of the Securities—Description of Debt Securities—Global Securities,” the global notes will not be exchangeable for Notes in definitive registered form, and will not be issued in definitive registered form. Financial institutions, acting as direct and indirect participants in DTC, will represent your beneficial interests in the global notes. These financial institutions will record the ownership and transfer of your beneficial interest through book-entry accounts. You may hold your beneficial interests in the Notes through Euroclear Bank SA/NV (“Euroclear”) or Clearstream Banking, S.A. (“Clearstream”) if you are a participant in such systems, or indirectly through organizations that are participants in such systems. Any secondary market trading of book-entry interests in the Notes will take place through DTC participants, including Euroclear and Clearstream. See “Clearance and Settlement—Transfers Within and Between DTC, Euroclear and Clearstream”.

Further Issues

We may from time to time, without the consent of the holders of the Notes, create and issue additional debt securities with the same terms and conditions as either series of the Notes in all respects so that such further issue shall be consolidated and form a single series with the relevant series of the Notes. We will not issue any such additional debt securities unless such additional securities have less than a de minimis amount of original issue discount or such issuance would otherwise constitute a “qualified reopening” for U.S. federal income tax purposes.

Delivery of the Notes

We expect to make delivery of the Notes, against payment in same-day funds on or about February 3, 2025, which we expect will be the seventh business day following the date of this prospectus supplement, referred to as “T+7,” for the Notes. You should note that initial trading of the Notes may be affected by the T+7 settlement. See “Underwriting—Delivery of the Notes”.

Underwriting

Crédit Agricole Corporate and Investment Bank will offer the Notes in the United States through its registered broker-dealer affiliate in the United States, Crédit Agricole Securities (USA) Inc. Standard Chartered Bank will not effect any offers or sales of any Notes in the United States unless it is through one or more U.S. registered broker-dealers as permitted by the regulations of FINRA. See “Underwriting—Relationship with the Underwriters”.

S-7

USE OF PROCEEDS

The net proceeds from the issue of the Notes, after deducting the underwriting discount but not estimated expenses, will be US$2,989,833,000. We will use the net proceeds from the sale of the Notes for our general operations, including extension of foreign currency loans and repayment of our maturing debt and other obligations.

S-8

RECENT DEVELOPMENTS

This section provides information that supplements the information about our bank and the Republic included under the headings corresponding to the headings below in the accompanying prospectus dated June 17, 2024. Defined terms used in this section have the meanings given to them in the accompanying prospectus. If the information in this section differs from the information in the accompanying prospectus, you should rely on the information in this section.

THE KOREA DEVELOPMENT BANK

Unless specified otherwise, the information provided below is stated on a separate basis in accordance with Korean IFRS (“K-IFRS”).

Overview

As of June 30, 2024, we hadW206,784.1 billion of loans outstanding (including loans, call loans, domestic usance, bills of exchange bought, local letters of credit negotiation and loan-type suspense accounts pursuant to the applicable guidelines without adjusting for allowance for loan losses, present value discounts and deferred loan fees), total assets ofW333,207.5 billion and total equity ofW42,519.4 billion, as compared toW203,067.3 billion of loans outstanding,W316,361.8 billion of total assets andW38,912.4 billion of total equity as of December 31, 2023. For the six months ended June 30, 2024, we recorded interest income ofW6,125.2 billion, interest expense ofW5,562.5 billion and net income ofW1,673.8 billion, as compared toW5,573.4 billion of interest income,W4,699.2 billion of interest expense andW2,814.6 billion of net income for the six months ended June 30, 2023. See “—Selected Financial Statement Data.”

Capitalization

As of September 30, 2024, our authorized capital wasW30,000 billion and our capitalization was as follows:

	September 30, 2024(1)
	(billions of Won)
	(unaudited)
Long-term debt(2)(3)(4):
Won currency borrowings		4,468.3
Industrial finance bonds		155,843.3
Foreign currency borrowings		4,886.5
Total long-term debt		165,198.1
Capital:
Paid-in capital		26,316.6
Capital surplus		2,457.0
Retained earnings(5)		12,096.2
Accumulated other comprehensive income		1,868.4
Total capital		42,738.2
Total capitalization		207,936.3

(1) Except as disclosed in this prospectus supplement, there has been no material change in our capitalization since September 30, 2024.

(2) Defined as debt that has a maturity at issuance of one year or more.

(3) We have translated borrowings in foreign currencies into Won at the rate ofW1,319.6 to US$1.00, which was the market average exchange rate, as announced by the Seoul Money Brokerage Services Ltd., on September 30, 2024.

(4) As of September 30, 2024, we had confirmed acceptances and guarantees totalingW11,331.0 billion under outstanding guarantees issued on behalf of our clients.

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(5) Includes planned regulatory reserve for credit losses ofW77.6 billion as of September 30, 2024. If our allowance for credit losses is deemed insufficient for regulatory purposes, we compensate for the difference by recording a regulatory reserve for credit losses, which is shown as a separate item included in retained earnings.

Business

Government Support and Supervision

As of September 30, 2024, our paid-in capital wasW26,316.6 billion compared toW23,926.6 billion as of December 31, 2023. In July 2024, the Government contributedW185 billion in cash to our capital.

Selected Financial Statement Data

Separate Financial Statement Data

Recent Developments

As of September 30, 2024, we had W203,268.9 billion of loans outstanding (including loans, call loans, domestic usance, bills of exchange bought, local letters of credit negotiation and loan-type suspense accounts pursuant to the applicable guidelines without adjusting for allowance for loan losses, present value discounts and deferred loan fees), total assets of W327,381.9 billion and total equity of W42,738.2 billion, as compared toW203,067.3 billion of loans outstanding,W317,065.8 billion of total assets andW39,430.5 billion of total equity as of December 31, 2023. For the nine months ended September 30, 2024, we recorded interest income of W9,156.8 billion, interest expense of W8,348.6 billion and net income of W1,801.0 billion, as compared toW8,453.2 billion of interest income,W7,222.9 billion of interest expense andW2,923.5 billion of net income for the nine months ended September 30, 2023. The following tables present our selected separate financial information for the nine months ended September 30, 2023 and 2024 and as of December 31, 2023 and September 30, 2024, which has been derived from our unaudited separate financial statements as of December 31, 2023 and September 30, 2024 and for the nine months ended September 30, 2024 and 2023 prepared in accordance with K-IFRS.

Separate K-IFRS Financial Statement Data

	Nine Months Ended September 30,
	2023		2024
	(billions of Won) (unaudited)
Income Statement Data
Total Interest Income		8,453.2		9,156.8
Total Interest Expenses		7,222.9		8,348.6
Net Interest Income		1,230.3		808.2
Operating Income		2,790.6		2,102.3
Income before Income Tax		3,567.9		2,219.3
Income Tax Expense		644.4		418.3
Net Income		2,923.5		1,801.0

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	As of December 31, 2023		As of September 30, 2024
	(billions of Won) (unaudited)
Statements of Financial Position Data
Total Loans(1)		203,067.3		203,268.9
Total Borrowings(2)		252,497.3		257,816.3
Total Assets		317,065.8		327,381.9
Total Liabilities		277,635.2		284,643.8
Equity		39,430.5		42,738.2

(1) Gross amount, which includes loans for facility development, loans for working capital, loans for households, inter-bank loans, private loans, off-shore loan receivables, loans borrowed from overseas financial institutions, bills bought in foreign currencies, advance payments on acceptances and guarantees and other loans without adjusting for allowance for loan losses, present value discounts and deferred loan fees.

(2) Total borrowings include financial liabilities designated at fair value through profit or loss, deposits, borrowings and debentures.

Nine Months Ended September 30, 2024

For the nine months ended September 30, 2024, we had net income ofW1,801.0 billion compared to net income ofW2,923.5 billion in the corresponding period of 2023, on a separate K-IFRS basis. The principal factors for the decrease in net income included:

• a significant decrease in reversal of impairment loss on investments in subsidiaries and associates to W120.5 billion in the nine months ended September 30, 2024 from W783.3 billion in the corresponding period of 2023, primarily due to a comparatively smaller increase in the recoverable amount of our investment in Hanwha Ocean Co., Ltd. (formerly, DSME), resulting from a smaller increase in the fair value of such investment in the nine months ended September 30, 2024 compared to the corresponding period of 2023;

• a significant decrease in reversal of provisions for loan loss allowance toW70.8 billion in the nine months ended September 30, 2024 fromW621.0 billion in the corresponding period of 2023, primarily due to a decrease in the reversal of provisions for loan loss allowance for Hanwha Ocean Co., Ltd.; and

• a decrease in net interest income toW808.2 billion in the nine months ended September 30, 2024 fromW1,230.3 billion in the corresponding period of 2023, due to an increase in interest expense toW8,348.6 billion in the nine months ended September 30, 2024 fromW7,222.9 billion in the corresponding period of 2023, which outpaced the increase in interest income toW9,156.8 billion in the nine months ended September 30, 2024 fromW8,453.2 billion in the corresponding period of 2023, primarily due to an increase in recent periods of the volume of low-interest loans provided pursuant to Government support programs.

The above factors were partially offset by the following factors:

• an increase in net gain on securities measured at fair value through profit or loss toW512.0 billion in the nine months ended September 30, 2024 fromW180.6 billion in the corresponding period of 2023, primarily due to an increase in net gain on valuation on securities measured at fair value through profit or loss toW399.9 billion in the nine months ended September 30, 2024 fromW153.3 billion in the corresponding period of 2023; and

• an increase in dividend income toW911.4 billion in the nine months ended September 30, 2024 fromW654.7 billion in the corresponding period of 2023, primarily due to an increase in dividends received from the funds in which we invested as well as certain of our subsidiaries during the nine months ended September 30, 2024 compared to the corresponding period of 2023.

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Loans to Financially Troubled Companies

We have credit exposure to a number of financially troubled Korean companies, including HMM Company Limited (formerly, Hyundai Merchant Marine Co., Ltd.), HJ Shipbuilding & Construction Co., Ltd. (formerly, Hanjin Heavy Industries and Construction Co., Ltd.), Daehan Shipbuilding Co., Ltd., K Shipbuilding Co., Ltd., GM Korea Company and Taeyoung E&C. As of September 30, 2024, our credit extended to these companies totaled W10,155.6 billion, accounting for 3.1% of our total assets as of such date.

The following table shows the changes in credit exposure (including loans, guarantees and equity investments classified as substandard or below) extended to these companies as of the dates indicated:

Company	As of December 31, 2023		As of September 30, 2024		Primary Reason for Change
	(billions of Won)
HMM Company Limited	W	6,549.4	W	6,912.8	Increase due to a reversal of impairment loss resulting from an increase in the value of shares of HMM Company Limited
HJ Shipbuilding & Construction		1,195.7		895.7	Decrease due to decreases in refund guarantees, working capital loans and facility loans
Daehan Shipbuilding		977.2		1,117.5	Increase due to an increase in refund guarantees
K Shipbuilding		645.2		623.4	Decrease due to a decrease in refund guarantees
GM Korea Company		455.9		442.5	Decrease due to a decrease in the value of stocks
Taeyoung E&C		138.0		163.7	Increase due to increases in working capital loans and equity investment
Total	W	9,961.4	W	10,155.6

As of September 30, 2024, we established allowances of W0.5 billion for HMM Company Limited,W111.5 billion for HJ Shipbuilding & Construction,W79.7 billion for Daehan Shipbuilding,W33.3 billion for K Shipbuilding, none for GM Korea Company andW9.3 billion for Taeyoung E&C.

In July 2016, HMM Company Limited executed a debt-to-equity swap with us and other creditors, as part of its continued restructuring led by us as its largest creditor, and affiliates of the Hyundai group reduced their shareholdings in HMM Company Limited, which resulted in us becoming the largest shareholder of HMM Company Limited. In October 2018, we injectedW1 trillion in emergency aid into HMM Company Limited in order to normalize its operations by purchasing bonds with warrants and convertible bonds issued by HMM Company Limited. We also concurrently entered into an agreement to jointly manage HMM Company Limited together with Korea Ocean Business Corporation until December 2020, which was subsequently extended to January 2022. In June 2021, we exercised our right to convertW300 billion of our convertible bonds into 60 million common shares of HMM Company Limited. Following an improvement in the financial performance of HMM Company Limited, we ended our joint management of HMM Company Limited in January 2022, upon which Korea Ocean Business Corporation became its sole manager. We and Korea Ocean Business Corporation are each pursuing the sale of our respective equity shares in HMM Company Limited. In July 2023, we and Korea Ocean Business Corporation jointly announced a combined sale of an aggregate of approximately 38.9% of the equity interest in HMM Company Limited through a competitive bidding process. Although a consortium led by Harim Group was initially selected as the preferred bidder in December 2023, we concluded our negotiations with them in February 2024 upon failure to reach an agreement on certain commercial issues. In October 2023, we exercised our right to convertW200 billion of our convertible bonds into 40 million common shares of HMM Company Limited and exercised our stock purchase warrant tied to the bonds with warrants we

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purchased previously and acquired 60 million common shares of HMM Company Limited. In May and June 2024, we exercised our right to convertW50 billion andW100 billion of our convertible bonds into 10 million and 20 million common shares of HMM Company Limited, respectively. In October 2024, we exercised our rights to convertW330 billion of our convertible bonds into 66 million common shares of HMM Company Limited. As of December 31, 2024, our equity stake in HMM Company Limited amounted to 33.7%.

In the first nine months of 2024, we sold non-performing loans worth W387.4 billion to Hana F&I Co., Ltd.

In April 2020, we provided Asiana Airlines, a subsidiary of Kumho Asiana Group and the second-largest airline in Korea, with liquidity support in the aggregate amount of approximatelyW1.2 trillion, in the form of the provision of a credit line and an investment in its perpetual convertible bonds. Our decision to take such measure was largely driven by a need to address Asiana Airlines’ financial difficulties resulting from the negative impact of the COVID-19 pandemic on the airline industry, although we had previously provided Asiana Airlines with liquidity support in similar amount and form in 2019 as well with the aim of enhancing its financial condition. In the fourth quarter of 2020, we injectedW0.3 trillion into Asiana Airlines through the Key Industry Stabilization Fund, which was established by the Government to support businesses in certain key industries that faced financial difficulties resulting from the COVID-19 pandemic, in order to normalize its operations following the cancellation of plans by a consortium led by HDC Hyundai Development to acquire Asiana Airlines. In November 2020, we signed an investment agreement with Hanjin KAL, the parent company of Korean Air Lines, to injectW800 billion (consisting ofW500 billion through participation in a rights offering andW300 billion through purchase of exchangeable bonds) into Hanjin KAL in connection with Korean Air Lines’ contemplated acquisition of a 63.9% stake in Asiana Airlines through a transaction valued atW1.8 trillion (the “Asiana Acquisition”). In December 2020, Asiana Airlines’ shareholders approved a 3-to-1 share capital reduction plan, which was aimed at offsetting part of Asiana Airlines’ deficits and improving its capital structure. The Asiana Acquisition was consummated in December 2024 after a lengthy approval process by the antitrust authorities of a number of jurisdictions, following which Asiana Airlines became a subsidiary of Korean Air Lines. As of December 31, 2024, our equity interest in Hanjin KAL amounted to approximately 10.6%.

Results of Operations

The following tables present our selected separate financial information as of December 31, 2023 and June 30, 2024 and for the six months ended June 30, 2024 and 2023, which has been derived from our unaudited separate financial statements as of June 30, 2024 and for the six months ended June 30, 2024 and 2023 prepared in accordance with K-IFRS and included in this prospectus supplement.

Separate K-IFRS Financial Statement Data

	Six Months Ended June 30,
	2023		2024
	(billions of Won) (unaudited)
Income Statement Data
Total Interest Income		5,573.4		6,125.2
Total Interest Expenses		4,699.2		5,562.5
Net Interest Income		874.2		562.8
Operating Income		2,387.0		1,660.6
Income before Income Tax		3,425.4		2,032.3
Income Tax Expense		610.8		358.5
Net Income		2,814.6		1,673.8

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	As of December 31, 2023		As of June 30, 2024
	(billions of Won) (unaudited)
Statements of Financial Position Data
Total Loans(1)		203,067.3		206,784.1
Total Borrowings(2)		252,497.3		262,261.3
Total Assets		317,065.8		333,207.5
Total Liabilities		277,635.2		290,688.1
Equity		39,430.5		42,519.4

(1) Gross amount, which includes loans for facility development, loans for working capital, loans for households, inter-bank loans, private loans, off-shore loan receivables, bills bought in foreign currencies, advance payments on acceptances and guarantees and other loans without adjusting for allowance for loan losses, present value discounts and deferred loan origination costs and fees. See Note 9 of the notes to our unaudited separate financial statements as of June 30, 2024 and for the six months ended June 30, 2024 and 2023 included in this prospectus supplement.

(2) Total borrowings include financial liabilities designated at fair value through profit or loss, deposits, borrowings and debt issued.

Six Months Ended June 30, 2024

In the first half of 2024, we had net income ofW1,673.8 billion compared to net income ofW2,814.6 billion in the corresponding period of 2023, on a separate basis. The principal factors for the decrease in net income included:

• a significant decrease in reversal of impairment loss on investments in subsidiaries and associates toW374.3 billion in the first half of 2024 fromW1,044.9 billion in the corresponding period of 2023, primarily due to a comparatively smaller increase in the recoverable amount of our investment in Hanwha Ocean Co., Ltd. (formerly, DSME), resulting from a smaller increase in the fair value of such investment in the first half of 2024 compared to the corresponding period of 2023;

• a significant decrease in reversal of provisions for loan loss allowance toW69.1 billion in the first half of 2024 fromW636.7 billion in the corresponding period of 2023, primarily due to a decrease in the reversal of provisions for loan loss allowance for Hanwha Ocean Co., Ltd.;

• a decrease in net interest income toW562.8 billion in the first half of 2024 fromW874.2 billion in the corresponding period of 2023, due to an increase in interest expense toW5,562.5 billion in the first half of 2024 fromW4,699.2 billion in the corresponding period of 2023, which outpaced the increase in interest income toW6,125.2 billion in the first half of 2024 fromW5,573.4 billion in the corresponding period of 2023, primarily due to an increase in recent periods of the portion of low-interest loans provided pursuant to Government support programs as a percentage of our overall loans; and

• an increase in net loss on derivatives toW414.4 billion in the first half of 2024 fromW129.9 billion in the corresponding period of 2023, primarily due to a change in net gain (loss) on hedging purpose currency derivatives to a net loss in the first half of 2024 from a net gain in the corresponding period of 2023, resulting from fluctuations in interest rates, foreign exchange rates and the prices of derivatives.

The above factors were partially offset by the following factors:

• a decrease in income tax expense toW358.5 billion in the first half of 2024 fromW610.8 billion in the corresponding period of 2023, primarily due to a decrease in our profit before income taxes toW2,032.3 billion in the first half of 2024 fromW3,425.4 billion in the corresponding period of 2023; and

• an increase in net gain on foreign currency transactions toW571.4 billion in the first half of 2024 fromW356.9 billion in the corresponding period of 2023, primarily due to increased fluctuations in foreign currency exchange rates in the first half of 2024 compared to the corresponding period of 2023.

Allowances for Loan Losses and Loans in Arrears

As of June 30, 2024, we had established allowances ofW2,807.7 billion for loan losses under K-IFRS.

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Certain of our customers have restructured loans with their creditor banks. As of June 30, 2024, we have provided loans ofW731.8 billion for companies under workout, court receivership, court mediation and other restructuring procedures. As of June 30, 2024, we had established allowances ofW307.0 billion for loan losses with respect to such companies. We cannot assure you that actual credit losses from the loans to these customers will not exceed the allowances established.

The following table provides information on our loan loss allowances.

		As of June 30, 2024(1)
		Loan Amount		Loan Loss Allowances
		(in billions of Won, except percentages)
Loan Classification	Normal(2)	W	205,111.7	W	2,115.0
	Precautionary		484.0		89.4
	Substandard		496.4		173.8
	Doubtful		290.2		136.9
	Expected Loss		401.7		292.6
	Total	W	206,784.1	W	2,807.7

(1) These figures include loans for facility development, loans for working capital, loans for households, inter-bank loans, private loans, off-shore loan receivables, bills bought in foreign currencies, advance payments on acceptances and guarantees and other loans.

(2) Includes loans guaranteed by the Government. Under K-IFRS, we establish loan loss allowances for all loans including loans guaranteed by the Government.

As of June 30, 2024, our non-performing loans totaledW1,188.4 billion, representing 0.6% of our outstanding loans as of such date. Non-performing loans are defined as loans that are classified as substandard or below. On June 30, 2024, our legal reserve wasW3,725.5 billion, representing 1.8% of our outstanding loans as of such date.

Loans to Financially Troubled Companies

We have credit exposure to a number of financially troubled Korean companies including HMM Company Limited (formerly, Hyundai Merchant Marine Co., Ltd.), HJ Shipbuilding & Construction Co., Ltd. (formerly, Hanjin Heavy Industries and Construction Co., Ltd.), Daehan Shipbuilding Co., Ltd., K Shipbuilding Co., Ltd., GM Korea Company and Taeyoung E&C. As of June 30, 2024, our credit extended to these companies totaledW10,833.0 billion, accounting for 3.3% of our total assets as of such date.

The following table provides the loan amounts (including loans classified as substandard or below and equity investment classified as estimated loss or below) extended to these companies as of the dates indicated:

Company	As of December 31, 2023		As of June 30, 2024		Primary Reason for Change
	(billions of Won)
HMM Company Limited	W	6,549.4	W	7,362.1	Increase due to a reversal of impairment loss resulting from an increase in the value of shares of HMM Company Limited
HJ Shipbuilding & Construction		1,195.7		1,078.7	Decrease due to decreases in refund guarantees and working capital loans
Daehan Shipbuilding		977.2		1,074.8	Increase due to an increase in refund guarantees
K Shipbuilding		645.2		681.0	Increase due to an increase in refund guarantees
GM Korea Company		455.9		442.6	Decrease due to a decrease in the value of stocks
Taeyoung E&C		138.0		193.7	Increase due to increases in working capital loan and equity investment
Total	W	9,961.4	W	10,833.0

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As of June 30, 2024, we established allowances ofW0.8 billion for HMM Company Limited,W127.4 billion for HJ Shipbuilding & Construction,W70.9 billion for Daehan Shipbuilding,W40.5 billion for K Shipbuilding, none for GM Korea Company andW10.5 billion for Taeyoung E&C.

In July 2016, HMM Company Limited executed a debt-to-equity swap with us and other creditors, as part of its continued restructuring led by us as its largest creditor, and affiliates of the Hyundai group reduced their shareholdings in HMM Company Limited, which resulted in us becoming the largest shareholder of HMM Company Limited. In October 2018, we injectedW1 trillion in emergency aid into HMM Company Limited in order to normalize its operations by purchasing bonds with warrants and convertible bonds issued by HMM Company Limited. We also concurrently entered into an agreement to jointly manage HMM Company Limited together with Korea Ocean Business Corporation until December 2020, which was subsequently extended to January 2022. In June 2021, we exercised our right to convert W300 billion of our convertible bonds into 60 million common shares of HMM Company Limited. Following an improvement in the financial performance of HMM Company Limited, we ended our joint management of HMM Company Limited in January 2022, upon which Korea Ocean Business Corporation became its sole manager. We and Korea Ocean Business Corporation are each pursuing the sale of our respective equity shares in HMM Company Limited. In July 2023, we and Korea Ocean Business Corporation jointly announced a combined sale of an aggregate of approximately 38.9% of the equity interest in HMM Company Limited through a competitive bidding process. Although a consortium led by Harim Group was initially selected as the preferred bidder in December 2023, we concluded our negotiations with them in February 2024 upon failure to reach an agreement on certain commercial issues. In October 2023, we exercised our right to convertW200 billion of our convertible bonds into 40 million common shares of HMM Company Limited and exercised our stock purchase warrant tied to the bonds with warrants we purchased previously and acquired 60 million common shares of HMM Company Limited. In May and June 2024, we exercised our right to convertW50 billion andW100 billion of our convertible bonds into 10 million and 20 million common shares of HMM Company Limited, respectively. As of June 30, 2024, our equity stake in HMM Company Limited amounted to 30.9%.

In the first half of 2024, we sold non-performing loans worthW387.4 billion to Hana F&I Co., Ltd.

Operations

Loan Operations

The following table sets out, by currency and category of loan, our total outstanding loans as of June 30, 2024:

Loans⁽¹⁾

	June 30, 2024
	(billions of Won)
Equipment Capital Loans:
Domestic currency	W	60,965.7
Foreign currency		12,065.3
		73,031.0
Working Capital Loans:
Domestic currency(2)		68,224.3
Foreign currency		20,141.4
		88,365.7
Other Loans(3)		45,387.4
Total loans	W	206,784.1

(1) Includes loans extended to affiliates.

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(2) Includes loans on households.

(3) Includes inter-bank loans, private loans, off-shore loan receivables, loans borrowed from overseas financial institutions, bills bought in foreign currencies, advance payments on acceptances and guarantees and other loans.

As of June 30, 2024, we hadW206,784.1 billion in outstanding loans, which represents a 1.8% increase fromW203,067.3 billion of outstanding loans as of December 31, 2023.

Maturities of Outstanding Loans

The following table categorizes our outstanding equipment capital and working capital loans by their remaining maturities:

Outstanding Equipment Capital and Working Capital Loans by Remaining Maturities⁽¹⁾

	June 30, 2024		As % of June 30, 2024 Total
	(billions of Won, except percentages)
Loans with remaining maturities of one year or less	W	74,414.8		46.1	%
Loans with remaining maturities of more than one year		86,981.8		53.9
Total	W	161,396.7		100.0	%

(1) Includes loans extended to affiliates.

Loans by Industrial Sector

The following table sets out the total amount of our outstanding equipment capital and working capital loans, categorized by industry sector as of June 30, 2024:

Outstanding Equipment Capital and Working Capital Loans by Industry Sector⁽¹⁾

	June 30, 2024			As % of June 30, 2024 Total
	(billions of Won, except percentages)
Manufacturing	W	73,167.6			45.3	%
Finance and Insurance		39,336.7			24.4
Transportation		10,698.6			6.6
Electric, Gas and Water Supply Industry		5,685.9			3.5
Public Administration		680.4			0.4
Others(2)		31,827.5			19.7
Total	W	161,396.7			100.0	%
Percentage increase (decrease) from December 31, 2023		0.9	%

(1) Includes loans extended to affiliates.

(2) Includes wholesale and retail trade, real estate and leasing, and construction.

Industrial Bank of Korea was our single largest borrower as of June 30, 2024, accounting for 4.2% of our outstanding equipment capital and working capital loans. As of June 30, 2024, our five largest borrowers and 20 largest borrowers accounted for 9.6% and 19.4%, respectively, of our outstanding equipment capital and working capital loans.

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The following table breaks down the equipment capital and working capital loans to our 20 largest borrowers outstanding as of June 30, 2024 by industry sector:

20 Largest Borrowers by Industry Sector

	As % of June 30, 2024 Total Outstanding Equipment Capital and Working Capital Loans to Our 20 Largest Borrowers
Finance and Insurance		48.4	%
Manufacturing		34.8
Transportation		8.3
Others(1)		8.5
Total		100.0

(1) Includes wholesale and retail trade, real estate and leasing, and construction.

Loans by Categories

The following table sets out equipment capital and working capital loans by categories as of June 30, 2024:

	Equipment Capital Loans					Working Capital Loans
	June 30, 2024		%			June 30, 2024		%
	(billions of Won, except percentages)
Industrial fund loans	W	55,008.9		75.3	%	W	54,160.2		61.3	%
On-lending loans		2,282.0		3.1			13,304.8		15.1
Foreign currency loans		7,634.7		10.5			1,683.2		1.9
Local currency loans denominated in foreign currencies		0.7		0.0			15.5		0.0
Offshore loans in foreign currencies		4,275.1		5.9			16,302.1		18.4
Government fund loans		72.7		0.1			0.0		0.0
Overdraft		0.0		0.0			85.2		0.1
Others(1)		3,756.8		5.1			2,814.6		3.2
Total	W	73,031.0		100.0	%	W	88,365.7		100.0	%

(1) Includes loans on households and loans extended to affiliates.

Guarantee Operations

The following table shows our outstanding guarantees as of June 30, 2024:

	June 30, 2024
	(billions of Won)
Acceptances	W	203.5
Guarantees on local borrowings		750.8
Guarantees on foreign borrowings		10,611.0
Letters of guarantee for importers		85.9
Total	W	11,651.3

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Investments

Our equity investments increased toW49,334.5 billion as of June 30, 2024 fromW45,040.4 billion as of December 31, 2023. As of June 30, 2024, the cost basis of our equity investments subject to restriction under the KDB Act and our Articles of Incorporation totaledW23,826.5 billion, equal to 40.8% of our equity investment ceiling.

The following table sets out our equity investments by industry sector on a book value basis as of June 30, 2024:

Equity Investments

	Book Value as of June 30, 2024
	(billions of Won)
Electric, Gas and Water Supply Industry	W	16,994.6
Finance and Insurance		12,884.6
Transportation and Communication		5,227.9
Real Estate Business		9.5
Construction		1,014.1
Manufacturing		3,091.3
Others		10,112.4
Total	W	49,334.5

As of June 30, 2024, we held total equity investments, on a book value basis, ofW1,968.8 billion in two of our five largest borrowers andW2,299.3 billion in three of our 20 largest borrowers.

When possible, we use the prevailing market price of a security to determine the value of our interest. However, if no readily ascertainable market value exists for our holdings, we record these investments at the cost of acquisition. With respect to our equity interests in enterprises in which we hold more than 15% of interest, we value these investments annually, with certain exceptions, on a net asset value basis when the investee company releases its financial statements. As of June 30, 2024, the aggregate value of our equity investments accounted for approximately 78.5% of their aggregate cost basis.

Other Activities

As of June 30, 2024, we held in trust cash and other assets totalingW30,770.0 billion, and we generated in the first half of 2024 trust fee income equalingW229.1 billion.

Source of Funds

Borrowings from the Government

The following table sets out our Government borrowings as of June 30, 2024:

Type of Funds Borrowed	As of June 30, 2024
	(billions of Won)
General purpose	W	72.7
Special purpose		4,812.7
Total	W	4,885.6

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Domestic and International Capital Markets

The following table sets out the outstanding balance of our industrial finance bonds as of June 30, 2024:

Outstanding Balance	As of June 30, 2024
	(billions of Won)
Denominated in Won	W	113,820.5
Denominated in other currencies		47,852.1
Total	W	161,672.6

As of June 30, 2024, the aggregate amount of our industrial finance bonds and guarantee obligations (including guarantee obligations relating to loans that had not been borrowed as of June 30, 2024) wasW181,102.0 billion, equal to 20.2% of our authorized amount under the KDB Act, which wasW898,037.9 billion.

Foreign Currency Borrowings

As of June 30, 2024, the outstanding amount of our foreign currency borrowings was US$19.9 billion. Our long-term and short-term foreign currency borrowings increased toW27,628.4 billion as of June 30, 2024 fromW22,934.4 billion as of December 31, 2023.

Deposits

As of June 30, 2024, demand deposits held by us totaledW1,806.3 billion and time and savings deposits held by us totaledW57,581.6 billion.

Debt

Debt Repayment Schedule

The following table sets out our principal repayment schedule as of June 30, 2024:

Debt Principal Repayment Schedule⁽¹⁾

	Maturing on or before December 31,
Currency(2)(3)	2024		2025		2026		2027		Thereafter
	(billions of Won)
Won	W	31,265.9	W	44,481.2	W	19,864.0	W	9,692.8	W	13,402.2
Foreign		23,411.0		18,275.2		12,284.7		7,973.8		13,535.7
Total Won Equivalent	W	54,676.9	W	62,756.4	W	32,148.7	W	17,666.7	W	26,937.9

(1) Excludes bonds sold under repurchase agreements and call money.

(2) Borrowings in foreign currencies have been translated into Won at the market average exchange rates on June 28, 2024, as announced by the Seoul Money Brokerage Services Ltd.

(3) We categorize debt with respect to which we have entered into currency swap agreements by our repayment currency under such agreements.

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Directors and Management; Employees

Currently, the members of our Board of Directors are:

Position	Name	Expiration of Term
Chief Executive Officer and Chairman of the Board of Directors	Seog Hoon Kang	June 6, 2025
Chief Operating Officer and Vice Chairman of the Board of Directors	Bock Kyu Kim	March 22, 2026
Auditor	Jae Shin Kim	August 25, 2027
Independent Non-executive Directors	Yong Hi Lee	April 2, 2025
	Hee Rak Kim	January 28, 2026
	Sun Key You	January 28, 2026

Financial Statements and the Auditors

Our interim separate financial statements as of June 30, 2024 and for the six months ended June 30, 2024 and 2023 appearing in this prospectus supplement were prepared in conformity with K-IFRS, as summarized in Note 2 of the notes to our unaudited separate financial statements as of June 30, 2024 and for the six months ended June 30, 2024 and 2023 included in this prospectus supplement.

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Korea Development Bank

Interim Separate Statements of Financial Position

June 30, 2024 (Unaudited) and December 31, 2023

(In millions of won)	Notes		June 30, 2024		December 31, 2023
Assets
Cash and due from banks		4,42,44,45,48	W	12,680,695		8,659,808
Securities measured at FVTPL		5,44,45,48		18,998,873		16,058,556
Securities measured at FVOCI		6,38,44,45,48		35,989,416		33,888,064
Securities measured at amortized cost		7,38,44,45,48		8,827,532		8,583,188
Loans measured at FVTPL		8,44,45,48		439,026		488,432
Loans measured at amortized cost		9,44,45,48		203,993,390		199,981,780
Derivative financial assets		10,44,45,46,48		9,677,843		7,383,325
Investments in subsidiaries and associates		11,47		32,106,444		30,803,008
Property and equipment, net		12,47		801,248		802,084
Investment property, net		13,47		62,164		73,822
Intangible assets, net		14,47		61,791		85,461
Defined benefit assets		20		65,773		68,920
Current tax assets				10,788		13,547
Other assets		15,44,45,48		9,492,494		10,175,783
Total assets			W	333,207,477		317,065,778
Liabilities
Financial liabilities measured at FVTPL		16,44,45,48	W	2,191,508		1,920,061
Deposits		17,44,45,48		68,796,550		65,897,732
Borrowings		18,44,45,48		32,515,024		27,745,629
Debentures		19,44,45,48		158,758,239		156,933,867
Derivative financial liabilities		10,44,45,46,48		10,673,654		7,654,901
Provisions		21		796,854		1,058,783
Deferred tax liabilities		36		4,333,028		3,978,164
Current tax liabilities				136,759		345,683
Other liabilities		22,44,45,48		12,486,491		12,100,425
Total liabilities				290,688,107		277,635,245
Equity
Issued capital		1,23		26,131,559		23,926,559
Capital surplus		23		2,457,898		2,468,715
Accumulated other comprehensive income		23		1,968,934		2,158,351
Retained earnings		23		11,960,979		10,876,908
(Regulatory reserve for credit losses ofW77,581 million as of June 30, 2024 andW211,996 million as of December 31, 2023, respectively)
(Required provision for (reversal of) regulatory reserve for credit losses ofW93,978 million as of June 30, 2024 andW(134,415) million as of December 31, 2023, respectively)
(Planned provision for (reversal of) regulatory reserve for credit losses ofW93,978 million as of June 30, 2024 andW(134,415) million as of December 31, 2023, respectively)
Total equity				42,519,370		39,430,533
Total liabilities and equity			W	333,207,477		317,065,778

See accompanying notes to the interim separate financial statements.

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Korea Development Bank

Interim Separate Statements of Comprehensive Income

Six-month periods ended June 30, 2024 and 2023 (Unaudited)

			June 30, 2024						June 30, 2023
(In millions of won, except earnings per share information)	Notes		Three-month period ended			Six-month period ended			Three-month period ended			Six-month period ended
Interest income		24	W	3,086,536			6,125,243			2,811,567			5,573,406
Interest expense		24		(2,807,449	)		(5,562,489	)		(2,388,272	)		(4,699,190	)
Net interest income		47		279,087			562,754			423,295			874,216
Net fees and commission income		25		124,101			233,558			105,700			187,233
Dividend income		26		182,665			654,453			105,742			461,842
Net gain (loss) on securities measured at FVTPL		27		121,888			246,919			(2,942	)		162,462
Net gain (loss) on financial liabilities measured at FVTPL		28		(34,016	)		37,535			86,520			(5,851	)
Net gain (loss) on securities measured at FVOCI		29		5,023			6,053			(3,915	)		(1,954	)
Net gain (loss) on derivatives		30		(241,783	)		(414,435	)		119,947			(129,930	)
Net gain on foreign currency transaction		31		300,638			571,354			4,464			356,892
Other operating expense, net		32		(115,619	)		(228,534	)		(103,840	)		(186,115	)
Non-interest income, net				342,897			1,106,903			311,676			844,579
Reversal of credit losses		33		(134,559	)		(378,809	)		(890,339	)		(1,046,860	)
General and administrative expenses		34,47		180,270			387,853			179,024			378,619
Operating income		47		576,273			1,660,613			1,446,286			2,387,036
Reversal of impairment loss on investments in subsidiaries and associates				853,847			374,345			633,270			1,044,917
Other non-operating income		35		276			1,872			396			2,408
Other non-operating expense		35		(1,155	)		(4,533	)		(5,020	)		(8,949	)
Non-operating income, net				852,968			371,684			628,646			1,038,376
Profit before income taxes				1,429,241			2,032,297			2,074,932			3,425,412
Income tax expense		36		348,559			358,481			351,858			610,819
Profit for the period		23		1,080,682			1,673,816			1,723,074			2,814,593
(Profit for the period adjusted for regulatory reserve for credit losses:W1,282,581 million andW1,579,838 million for the three-month and six-month periods ended June 30, 2024, respectively;W1,836,500 million andW2,759,045 million for the three-month and six-month periods ended June 30, 2023, respectively)
Other comprehensive income (loss) for the period, net of tax		23
Items that are or may be reclassified subsequently to profit or loss:
Net gain on securities measured at FVOCI				24,021			54,700			10,517			160,573
Exchange differences on translation of foreign operations				58,612			134,948			9,248			52,561
Valuation gain (loss) on cash flow hedge				(332	)		(1,109	)		179			(527	)
Net loss on hedges of net investments in foreign operations				(28,808	)		(67,808	)		(6,116	)		(31,012	)
				53,493			120,731			13,828			181,595
Items that will not be reclassified to profit or loss:
Net gain (loss) on securities measured at FVOCI				377,163			(15,730	)		(284,361	)		(94,192	)
Fair value changes on financial liabilities designated at fair value due to credit risk				(11,814	)		(6,038	)		(5,924	)		(10,840	)
Remeasurements of defined benefit liabilities				—			—			—			143
				365,349			(21,768	)		(290,285	)		(104,889	)
				418,842			98,963			(276,457	)		76,706
Total comprehensive income for the period			W	1,499,524			1,772,779			1,446,617			2,891,299
Earnings per share
Basic and diluted earnings per share (in won)		37	W	208			335			365			601

See accompanying notes to the interim separate financial statements.

S-23

Korea Development Bank

Interim Separate Statements of Changes in Equity

Six-month periods ended June 30, 2024 and 2023 (Unaudited)

(In millions of won)	Issued capital		Capital surplus			Accumulated other comprehensive income			Retained earnings			Total equity
Balance at January 1, 2023	W	23,151,559		2,475,310			2,819,333			7,222,171			35,668,373
Profit for the period		—		—			—			2,814,593			2,814,593
Net gain on securities measured at FVOCI		—		—			47,868			18,513			66,381
Exchange differences on translation of foreign operations		—		—			52,561			—			52,561
Valuation loss on cash flow hedge		—		—			(527	)		—			(527	)
Net loss on hedges of net investments in foreign operations		—		—			(31,012	)		—			(31,012	)
Fair value changes on financial liabilities designated at fair value due to credit risk		—		—			(10,840	)		—			(10,840	)
Remeasurements of defined benefit liabilities		—		—			143			—			143
Total comprehensive income for the period		—		—			58,193			2,833,106			2,891,299
Dividends		—		—			—			(164,743	)		(164,743	)
Paid in capital increase		555,000		(5,535	)		—			—			549,465
Transaction with owners		555,000		(5,535	)		—			(164,743	)		384,722
Balance at June 30, 2023	W	23,706,559		2,469,775			2,877,526			9,890,534			38,944,394
Balance at January 1, 2024	W	23,926,559		2,468,715			2,158,351			10,876,908			39,430,533
Profit for the period		—		—			—			1,673,816			1,673,816
Net gain on securities measured at FVOCI		—		—			(249,410	)		288,380			38,970
Exchange differences on translation of foreign operations		—		—			134,948			—			134,948
Valuation loss on cash flow hedge		—		—			(1,109	)		—			(1,109	)
Net loss on hedges of net investments in foreign operations		—		—			(67,808	)		—			(67,808	)
Fair value changes on financial liabilities designated at fair value due to credit risk		—		—			(6,038	)		—			(6,038	)
Total comprehensive income (loss) for the period		—		—			(189,417	)		1,962,196			1,772,779
Dividends		—		—			—			(878,125	)		(878,125	)
Paid in capital increase		2,205,000		(10,817	)		—			—			2,194,183
Transaction with owners		2,205,000		(10,817	)		—			(878,125	)		1,316,058
Balance at June 30, 2024	W	26,131,559		2,457,898			1,968,934			11,960,979			42,519,370

See accompanying notes to the interim separate financial statements.

S-24

Korea Development Bank

Interim Separate Statements of Cash Flows

Six-month periods ended June 30, 2024 and 2023 (Unaudited)

(In millions of won)	Notes		2024			2023
Cash flows from operating activities
Profit for the period			W	1,673,816			2,814,593
Adjustments for:
Income tax expense		36		358,481			610,819
Interest income		24		(6,125,243	)		(5,573,406	)
Interest expense		24		5,562,489			4,699,190
Dividend income		26		(654,453	)		(461,842	)
Gain on valuation of securities measured at FVTPL		27		(212,537	)		(153,455	)
Loss (gain) on disposal of securities measured at FVTPL				(226	)		24,616
Loss (gain) on financial liabilities measured at FVTPL		28		(37,535	)		5,851
Loss (gain) on securities measured at FVOCI		29		(6,053	)		1,954
Impairment loss (reversal of impairment loss) on securities measured at amortized cost				(239	)		4,491
Loss on loans measured at FVTPL		32		15,671			11,625
Loss (gain) on valuation of derivatives				388,658			(284,756	)
Net loss on fair value hedged items		30		145,484			495,012
Gain on foreign exchange translations		31		(551,517	)		(362,873	)
Loss on disposal of investments in subsidiaries and associates		32		7,203			—
Reversal of impairment loss on investments in subsidiaries and associates				(374,345	)		(1,044,917	)
Reversal of loan loss allowance		33		(69,085	)		(636,714	)
Increase (reversal) of provision for other assets		33		(2,598	)		2,391
Reversal of provision for payment guarantees		21		(202,306	)		(389,156	)
Reversal of provision for unused commitments		21		(62,509	)		(39,110	)
Increase (reversal) financial guarantee provision		21		(42,311	)		15,729
Reversal of provision for possible losses from lawsuits		21		—			(4	)
Reversal of provision for restoration		21		(95	)		(544	)
Defined benefit costs		20		13,251			11,716
Depreciation of property and equipment		34		34,967			35,861
Loss on disposal of property and equipment		35		754			1,304
Gain on disposal of intangible assets		35		—			(2	)
Depreciation of investment property		35		877			1,381
Amortization of intangible assets		34		27,025			27,230
Gain on redemption of debentures				—			(2	)
				(1,786,192	)		(2,997,611	)
Changes in operating assets and liabilities:
Due from banks				(662,009	)		(368,305	)
Securities measured at FVTPL				(2,334,974	)		(1,456,994	)
Loans measured at FVTPL				33,735			21,299
Loans measured at amortized cost				(5,104,144	)		8,341,120
Derivative financial instruments				241,939			65,522
Other assets				931,842			(9,573,434	)
Financial liabilities measured at FVTPL				100,771			30,587
Deposits				2,858,975			(952,496	)
Defined benefit liabilities				(10,104	)		(282	)
Other liabilities				262,106			12,291,933
				(3,681,863	)		8,398,950

(Continued)

S-25

Korea Development Bank

Interim Separate Statements of Cash Flows

Six-month periods ended June 30, 2024 and 2023 (Unaudited)

(In millions of won)	Notes		2024			2023
Income taxes refund (paid)				(196,875	)		60,663
Interest received				5,971,524			5,584,000
Interest paid				(5,327,344	)		(4,225,426	)
Dividends received				653,016			464,797
Net cash provided by (used in) operating activities			W	(2,693,918)			10,099,966
Cash flows from investing activities
Net increase of securities measured at FVTPL			W	(546,505)			(878,641	)
Disposal of securities measured at FVOCI				4,889,098			4,520,563
Acquisition of securities measured at FVOCI		6		(4,637,810	)		(2,678,618	)
Redemption of securities measured at amortized cost		7		2,128,648			1,395,000
Acquisition of securities measured at amortized cost		7		(2,346,980	)		(1,732,183	)
Disposal of property and equipment				1,239			7,354
Acquisition of property and equipment		12		(5,795	)		(10,988	)
Disposal of intangible assets				—			269
Acquisition of intangible assets		14		(2,951	)		(8,046	)
Disposal of investments in subsidiaries and associates				172,242			130,614
Acquisition of investments in subsidiaries and associates				(504,268	)		(211,526	)
Net cash provided by (used in) investing activities				(853,082	)		533,798
Cash flows from financing activities
Increase of financial liabilities measured at FVTPL				300,000			100,000
Decrease of financial liabilities measured at FVTPL				(99,994	)		(13,348	)
Proceeds from borrowings				28,884,680			22,909,905
Repayment of borrowings				(24,184,849	)		(22,230,187	)
Proceeds from issuance of debentures				47,118,006			54,358,264
Repayment of debentures				(45,626,531	)		(63,569,189	)
Decrease in lease liabilities				(14,894	)		(9,629	)
Dividends				(878,125	)		(164,743	)
Paid in capital increase				194,403			117,328
Net cash provided by (used in) financing activities				5,692,696			(8,501,599	)
Effects from changes in foreign currency exchange rate for cash and cash equivalents held				198,088			136,353
Net increase in cash and cash equivalents				2,343,784			2,268,518
Cash and cash equivalents at beginning of the period				11,860,577			11,872,469
Cash and cash equivalents at end of the period		42	W	14,204,361			14,140,987

See accompanying notes to the interim separate financial statements.

S-26

Korea Development Bank

Notes to the Interim Separate Financial Statements

June 30, 2024 and 2023 (Unaudited), and December 31, 2023

(In millions of won)

1. Reporting Entity

Korea Development Bank (the “Bank”) was established on April 1, 1954, in accordance with The Korea Development Bank Act to finance and manage major industrial projects.

The Bank is engaged in the banking industry under The Korea Development Bank Act and other applicable statutes, and in the fiduciary in accordance with the Financial Investment Services and Capital Markets Act.

Korea Finance Corporation (“KoFC”), the former ultimate parent company, and KDB Financial Group Inc. (“KDBFG”), the former immediate parent company, were established by spin-offs of divisions of the Bank as of October 28, 2009. KoFC and KDBFG were merged into the Bank, effective as of December 31, 2014. Issued capital isW26,131,559 million with 5,226,311,768 shares of issued and outstanding as of June 30, 2024 and 100% of the Bank’s shares are owned by the government of the Republic of Korea.

The Bank’s head office is located in 14, Eunhaeng-ro (Yeouido-dong), Yeongdeungpo-gu, Seoul and its service network as of June 30, 2024 is as follows:

	Domestic				Overseas
	Head Office		Branches		Branches		Subsidiaries		Representative offices		Total
KDB		1		60		11		7		7		86

2. Basis of Preparation

(1) Application of accounting standards

These interim financial statements have been prepared in accordance with the Korean International Financial Reporting Standards (“K-IFRS”) 1034 Interim Financial Reporting and provide less information as compared with its annual financial statements. The interim financial statements have been prepared in accordance with K-IFRS effective as of June 30, 2024 and the significant accounting policies applied in the preparation of these interim financial statements have been consistently applied to all periods presented unless otherwise specified.

(2) Changes and disclosures of accounting policies

(i) New and amended standards adopted

The Bank newly applied the following amended and enacted standards for the annual period beginning on January 1, 2024. The nature and the impact of each new standard or amendment are described below:

Amendment of Korean IFRS No.1001 Presentation of Financial Statements—Classification of Liabilities into Current and Non-Current and Non-current Liabilities with Covenants

Liabilities are classified as current or non-current based on their substantive rights existing at the end of the reporting period, without considering the possibility of exercising the right to delay the payment or management’s expectations. Also, if the transfer of equity instruments is included in the payment of liabilities, it is excluded if the option to pay with equity instruments is recognized separately from the liability in a compound financial instrument and meets the definition of equity instruments. These amendments do not have a significant impact on the financial statements.

S-27

Korea Development Bank

Notes to the Interim Separate Financial Statements

June 30, 2024 and 2023 (Unaudited), and December 31, 2023

(In millions of won)

2. Basis of Preparation, Continued

Amendment of Korean IFRS No.1007 Statement of Cash Flows and No.1107 Financial Instruments: Disclosures—Disclosure of Supplier Finance Arrangements

The amendments require disclosure of the effects of supplier finance arrangements on the Bank’s liabilities, cash flows and exposure to liquidity risk. These amendments do not have a significant impact on the financial statements.

Amendment of Korean IFRS No.1116 Leases—Lease Liability in a Sale and Leaseback

The amendments require a seller-lessee to subsequently measure lease liabilities arising from a leaseback in a way that it does not recognize any amount of the gain or loss that relates to the right of use it retains. These amendments do not have a significant impact on the financial statements.

Amendment of Korean IFRS No.1001 Presentation of Financial Statements—Disclosure of Virtual Asset

The amendments require additional disclosure for virtual assets held by the Bank, virtual assets entrusted by customers to the Bank, and the issuance and transfer of virtual assets. These amendments do not have a significant impact on the financial statements.

Amendments to Korean IFRS No.1012 Income Taxes—International Tax Reform—Pillar Two Model Rules

The Bank applies K-IFRS 1012 Income Taxes, which addresses income taxes arising from tax law enacted or substantively enacted to implement the Pillar Two model rules published by the Organization for Economic Co-operation and Development (“Pillar Two income taxes”). The amendments introduce a temporary exception to the requirements to recognize and disclose information about deferred tax assets and liabilities related to Pillar Two income taxes.

The Bank is still in the process of assessing the potential exposure to Pillar Two income taxes as of June 30, 2024, and expects no significant impact on the financial statements. Meanwhile, the recognition and disclosure of deferred taxes have been applied using the temporary exception.

(ii) New standards and interpretations issued but not effective

The following new standards, interpretations and amendments to existing standards have been issued but not effective for annual periods beginning after January 1, 2024, and the Bank has not early adopted them. The nature and the impact of each new standard, amendment and enactments are described below:

Amendment of Korean IFRS No.1021 The Effects of Changes in Foreign Exchange Rates and Korean IFRS No.1101 First-time Adoption of International Financial Reporting Standards—Lack of exchangeability

The amendments require the Bank to determine a spot exchange rate when exchangeability is lacking, and to disclose information on the nature and financial effects of the currency not being exchangeable into the other currency, the spot exchange rate(s) used, the estimation process, and the risks to which the Bank is exposed. This amendment will be applied to the financial statements for the accounting year beginning on or after January 1, 2025. These amendments do not have a significant impact on the financial statements.

S-28

Korea Development Bank

Notes to the Interim Separate Financial Statements

June 30, 2024 and 2023 (Unaudited), and December 31, 2023

(In millions of won)

2. Basis of Preparation, Continued

(3) Basis of measurement

The financial statements have been prepared on the historical cost basis except for the following material items in the statement of financial position:

• Derivative financial instruments measured at fair value

• Financial instruments measured at fair value through profit or loss

• Financial instruments measured at fair value through other comprehensive income

• Fair value hedged financial instruments with changes in fair value, due to hedged risks, recognized in profit or loss

• Liabilities for defined benefit plans, which are recognized as net of the total present value of defined benefit obligations less the fair value of plan assets.

(4) Functional and presentation currency

These financial statements are presented in Korean won (“W”), which is the Bank’s functional currency and the currency of the primary economic environment in which the Bank operates.

(5) Use of estimates and judgments

The preparation of the financial statements in conformity with K-IFRS requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Management’s estimates of outcomes may differ from actual outcomes if management’s estimates and assumptions based on management’s best judgment at the reporting date are different from the actual environment.

Estimates and assumptions are continually evaluated and any change in an accounting estimate is recognized prospectively by including it in profit or loss in the period of the change, if the change affects that period only.

The following are the key assumptions concerning the future and other key sources of estimation uncertainty at the end of the reporting period that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year:

(i) Fair value of financial instruments

Financial instruments measured at fair value through profit or loss and other comprehensive income, and derivative instruments are recognized and measured at fair value. If the market for a financial instrument is not active, fair value is determined either by using a valuation technique or independent third-party valuation service. Valuation techniques include using recent arm’s length market transactions between knowledgeable, willing parties, if available, referencing to the current fair value of another instrument that is substantially the same, discounted cash flow analysis and option pricing models.

Financial instruments, which are not actively traded in the market and those with less transparent market prices, will have less objective fair values and require broad judgment on liquidity, concentration, uncertainty in market factors and assumptions in price determination and other risks.

S-29

Korea Development Bank

Notes to the Interim Separate Financial Statements

June 30, 2024 and 2023 (Unaudited), and December 31, 2023

(In millions of won)

2. Basis of Preparation, Continued

Diverse valuation techniques are used to determine the fair value of financial instruments, from generally accepted market valuation models to internally developed valuation models that incorporate various types of assumptions and variables.

(ii) Credit losses allowance

The Bank tests impairment and recognizes loss allowances on financial assets classified at amortized cost, debt instruments measured at fair value through other comprehensive income and recognizes provisions for payment guarantee, financial guarantee and unused commitments. Accuracy of allowances and provisions for credit losses is dependent upon estimation of expected cash flows of the borrower for individually assessed allowances of loans, and upon assumptions and methodology used for collectively assessed allowances for groups of loans, guarantees and unused loan commitments.

(iii) Deferred taxes

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the year when the asset is realized or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted at the reporting date. Deferred income tax assets are recognised to the extent that sufficient taxable profit will be available to allow all or part of the deferred tax asset to be utilized. Actual income taxes in the future may not be identical to the recognised deferred tax assets and liabilities.

(iv) Defined benefit liabilities

The Bank operates a defined benefit plan. Defined benefit liability is calculated by annual actuarial valuations as of the reporting date. To perform the actuarial valuations, assumptions for discount rates, future salary increases and others are required to be estimated. Defined benefit plans contain significant uncertainties in estimations due to its long-term nature.

3. Significant Accounting Policies

The significant accounting policies applied by the Bank in preparation of its separate financial statements are included below. The accounting policies set out below have been applied consistently to all periods presented in these separate financial statements.

(1) Investments in subsidiaries and associates

The accompanying financial statements are separate financial statements in accordance with K-IFRS 1027 ‘Separate Financial Statements’ and investments in subsidiaries and associates are accounted for at cost, not by performance and net asset reported by the investee.

Dividends received from subsidiaries and associates are recognised as income as of the time the right to receive the dividends is established.

(2) Business combination of entities under common control

The assets and liabilities acquired under business combinations under common control are recognised at the carrying amounts recognised previously in the consolidated financial statements of the ultimate parent. The

S-30

Korea Development Bank

Notes to the Interim Separate Financial Statements

June 30, 2024 and 2023 (Unaudited), and December 31, 2023

(In millions of won)

3. Significant Accounting Policies, Continued

difference between consideration transferred and carrying amounts of net assets acquired is recognised as part of share premium.

(3) Operating segments

The Bank makes decisions regarding allocation of resources to segments and categorizes segments, based on internal reports reviewed periodically by the chief operating decision maker, to assess performance. Information on segments reported to the chief operating decision maker includes items directly attributable to segments as well as those that can be allocated on a reasonable basis. Unallocated items mainly comprise corporate assets (such as the Bank Headquarters), head office expenses, and income tax assets and liabilities. The Bank recognises the CEO as the chief operating decision maker.

(4) Foreign exchange

(i) Foreign currency transactions

Transactions in foreign currencies are translated to the functional currency of the Bank, at exchange rates of the dates of transactions. Monetary assets and liabilities denominated in foreign currencies at the reporting date are translated to the functional currency at the exchange rate at that date. The foreign currency gain or loss on monetary items is the difference between amortized cost in the functional currency at the beginning of the period, adjusted for effective interest and payments during the period, and the amortized cost in foreign currency translated at the exchange rate at the end of the reporting period. Non-monetary assets and liabilities denominated in foreign currencies that are measured at fair value are translated to the functional currency at the exchange rate at the date that the fair value was determined.

Foreign currency differences arising on transactions and translations of monetary items are recognised in profit or loss, except for differences arising on the translation of a financial instruments designated as hedges of the net investment in foreign operations, or cash flow hedge, which are recognised in other comprehensive income.

When a gain or loss on a non-monetary item is recognised in other comprehensive income, any exchange component of that gain or loss is recognised in other comprehensive income. Conversely, when a gain or loss on a non-monetary item is recognised in profit or loss, any exchange component of that gain or loss shall be recognised in profit or loss.

(ii) Foreign operations

If the presentation currency of the Bank is different from a foreign operation’s functional currency, the financial statements of the foreign operation are translated into the presentation currency using the following methods:

Unless the functional currency of foreign operations is in a state of hyperinflation, assets and liabilities of foreign operations are translated at the closing exchange rate at the end of the reporting period. Revenues and expenses on the statement of comprehensive income are translated at the exchange rates of the date of transaction. Foreign currency differences that arise from translation are recognized as other comprehensive income, and the disposal of a foreign operation is re-categorized as profit or loss as of the moment of the disposal profit or loss is recognized.

S-31

Korea Development Bank

Notes to the Interim Separate Financial Statements

June 30, 2024 and 2023 (Unaudited), and December 31, 2023

(In millions of won)

3. Significant Accounting Policies, Continued

Any goodwill arising on the acquisition of a foreign operation, and any adjustments in fair value to the carrying amounts of assets and liabilities due to such acquisition, are treated as assets and liabilities of the foreign operation. Therefore, such are expressed in the functional currency of the foreign operations and, alongside other assets and liabilities of the foreign operation, translated at the closing exchange rate.

In the case of the disposal of a foreign operation, cumulative amounts of exchange difference regarding the foreign operation, recognized separately from other comprehensive income, are re-categorized from assets to profit or loss as of the disposal profit or loss is recognized.

(iii) Foreign exchange of net investment in foreign operations

Monetary items receivable from or payable to a foreign operation, with none or little possibility of being settled in the foreseeable future, are considered a part of the net investment in the foreign operation. Therefore, the exchange difference is recognised as comprehensive income or loss in the financial statement and re-categorized to profit or loss as of the disposal of the related net investment.

(5) Recognition and measurement of financial instruments

(i) Initial recognition

The Bank recognizes a financial asset or a financial liability in its separate statement of financial position when the Bank becomes a party to the contractual provisions of the instrument. A regular way purchase or sale of financial assets is recognized and derecognized using trade date accounting. The Bank classifies financial assets as financial assets at fair value through profit or loss, financial assets at fair value through other comprehensive income, or financial assets at amortized cost on the basis of the Bank’s business model for managing the financial assets and the contractual cash flow characteristics of the financial assets. The Bank classifies financial liabilities as financial liabilities at fair value through profit or loss, or financial liabilities at amortized cost.

At initial recognition, a financial asset or financial liability is measured at its fair value plus or minus, in the case of a financial asset or financial liability not at fair value through profit or loss, transaction costs that are directly attributable to the acquisition or issue of the financial asset or financial liability.

(ii) Subsequent measurement

After initial recognition, financial instruments are measured at amortized cost or fair value based on classification at initial recognition.

Amortized cost

The amortized cost is the amount at which the financial asset or financial liability is measured at initial recognition minus the principal repayments, plus or minus the cumulative amortization using the effective interest method of any difference between that initial amount and the maturity amount and, for financial assets, adjusted for any loss allowance.

Fair value

Fair values, which the Bank primarily uses for the measurement of financial instruments, are the published price quotations based on market prices or dealer price quotations of financial instruments traded in an active

S-32

Korea Development Bank

Notes to the Interim Separate Financial Statements

June 30, 2024 and 2023 (Unaudited), and December 31, 2023

(In millions of won)

3. Significant Accounting Policies, Continued

market where available. These are the best evidence of fair value. A financial instrument is regarded as quoted in an active market if quoted prices are readily and regularly available from an exchange, dealer, broker, an entity in the same industry, pricing service or regulatory agency, and those prices represent actual and regularly occurring market transactions on an arm’s length basis.

If the market for a financial instrument is not active, fair value is determined either by using a valuation technique or independent third-party valuation service. Valuation techniques include using recent arm’s length market transactions between knowledgeable, willing parties, if available, referencing to the current fair value of another instrument that is substantially the same, discounted cash flow analysis and option pricing models.

The Bank uses valuation models that are commonly used by market participants and customized for the Bank to determine fair values of common over-the-counter (OTC) derivatives such as options, interest rate swaps and currency swaps which are based on the inputs observable in markets. For more complex instruments, the Bank uses internally developed models, which are usually based on valuation methods and techniques generally used within the industry, or a value measured by an independent external valuation institution as the fair values if all or some of the inputs to the valuation models are not market observable and therefore it is necessary to estimate fair value based on certain assumptions.

If the valuation technique does not reflect all factors which market participants would consider in setting a price, the fair value is adjusted to reflect those factors. Those factors include counterparty credit risk, bid-ask spread, liquidity risk and others.

The chosen valuation technique makes maximum use of market inputs and relies as little as possible on entity-specific inputs. It incorporates all factors that market participants would consider in setting a price and is consistent with economic methodologies applied for pricing financial instruments. Periodically, the Bank calibrates the valuation technique and tests its validity using prices of observable current market transactions of the same instrument or based on other relevant observable market data.

(iii) Derecognition

Derecognition is the removal of a previously recognized financial asset or financial liability from the statement of financial position. The Bank derecognizes a financial asset or a financial liability when, and only when:

Derecognition of financial assets

Financial assets are derecognized when the contractual rights to the cash flows from the financial assets expire or the financial assets have been transferred and substantially all the risks and rewards of ownership of the financial assets are also transferred, or all the risks and rewards of ownership of the financial assets are neither substantially transferred nor retained and the Bank has not retained control. If the Bank neither transfers nor disposes of substantially all the risks and rewards of ownership of the financial assets, the Bank continues to recognize the financial asset to the extent of its continuing involvement in the financial asset.

If the Bank transfers the contractual rights to receive the cash flows of the financial asset, but retains substantially all the risks and rewards of ownership of the financial asset, the Bank continues to recognize the transferred asset in its entirety and recognize a financial liability for the consideration received.

S-33

Korea Development Bank

Notes to the Interim Separate Financial Statements

June 30, 2024 and 2023 (Unaudited), and December 31, 2023

(In millions of won)

3. Significant Accounting Policies, Continued

Derecognition of financial liabilities

Financial liabilities are derecognized from the statement of financial position when the obligation specified in the contract is discharged, cancelled or expires.

(iv) Offsetting

Financial assets and liabilities are offset and the net amount reported in the separate statements of financial position where there is a legally enforceable right to offset the recognized amounts and there is an intention to settle on a net basis or realize the assets and settle the liability simultaneously.

(6) Cash and cash equivalents

Cash and cash equivalents comprise balances with original maturities of three months or less from the date of acquisition that are subject to an insignificant risk of changes in their fair value, including cash on hand, deposits held at call with banks and other highly liquid short-term investments with original maturities of three months or less.

(7) Non-derivative financial assets

(i) Financial assets at fair value through profit or loss

Any non-derivative financial asset classified as held for trading or not classified as financial assets at fair value through other comprehensive income or financial assets measured at amortized cost is categorized under financial assets at fair value through profit or loss.

The Bank may designate certain financial assets upon initial recognition as at fair value through profit or loss when the designation eliminates or significantly reduces a measurement or recognition inconsistency (sometimes referred to as ‘an accounting mismatch’) that would otherwise arise from measuring assets or liabilities or recognizing the gains and losses on them on different bases.

After initial recognition, a financial asset at fair value through profit or loss is measured at fair value and gains or losses arising from a change in the fair value are recognized in profit or loss. Interest income and dividend income from financial assets at fair value through profit or loss are also recognized in profit or loss.

(ii) Financial assets at fair value through other comprehensive income

The Bank classifies financial assets as financial assets at fair value through other comprehensive income if they meet the following conditions: 1) debt instruments that are a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets, and consistent with representing solely payments of principal and interest on the principal amount outstanding or 2) equity instruments, not held for trading with the objective of generating a profit from short-term fluctuations in price or dealer’s margin, designated as financial assets at fair value through other comprehensive income. After initial recognition, a financial asset at fair value through other comprehensive income is measured at fair value. Gain and loss from changes in fair value, other than dividend income and interest income amortized using effective interest method and exchange differences arising on monetary items which are recognized directly in profit or loss, are recognized as other comprehensive income in equity.

S-34

Korea Development Bank

Notes to the Interim Separate Financial Statements

June 30, 2024 and 2023 (Unaudited), and December 31, 2023

(In millions of won)

3. Significant Accounting Policies, Continued

At disposal of financial assets at fair value through other comprehensive income, cumulative gain or loss is recognized as profit or loss for the reporting period. However, cumulative gain or loss of equity instrument designated as fair value through other comprehensive income are not recycled to profit or loss at disposal.

Financial assets at fair value through other comprehensive income denominated in foreign currencies are translated at the closing rate. Exchange differences resulting from changes in amortized cost are recognized in profit or loss, and other changes are recognized as equity.

(iii) Financial assets measured at amortized cost

A financial asset, which are held within the business model whose objective is to hold assets in order to collect contractual cash flows and consistent with representing solely payments of principal and interest on the principal amount outstanding, are classified as a financial asset at amortized cost. Financial assets at amortized cost are subsequently measured at amortized cost using the effective interest method after initial recognition and interest income is recognized using the effective interest method.

(8) Expected credit loss of financial assets

The Bank measures expected credit loss and recognizes loss allowance at the end of the reporting period for financial assets measured at amortized cost and fair value through other comprehensive income with the exception of financial asset measured at fair value through profit or loss.

The expected credit loss (“ECL”) is the weighted average amount of possible outcomes within a certain range, reflecting the time value of money, estimates on the past, current and future situations, and information accessible without excessive cost of effort.

The Bank uses the following three measurement techniques in accordance with K-IFRS:

• General approach: for financial assets and off-balance-sheet unused credit line that are not applied below two approaches

• Simplified approach: for receivables, contract assets and lease receivables

• Credit-impaired approach: for purchased or originated credit-impaired financial assets

The general approach is applied differently depending on the significance of the increase of the credit risk. If, at the reporting date, the credit risk on a financial instrument has not increased significantly since initial recognition, an entity shall measure the loss allowance for that financial instrument at an amount equal to 12-month expected credit losses. If the credit risk on that financial instrument has increased significantly since initial recognition, an entity shall measure the loss allowance for a financial instrument at an amount equal to the lifetime expected credit losses at each reporting date.

The Bank applies the simplified approach to 1) trade receivables and contract assets that do not have a significant financing component or 2) trade receivables, contract assets and lease receivables upon determining the Bank’s accounting policies as the application of the simplified approach. The approach requires expected lifetime losses to be recognized from initial recognition of the financial assets. Under credit-impaired approach, the Bank shall only recognize the cumulative changes in lifetime expected credit losses since initial recognition as a loss allowance for purchased or originated credit-impaired financial assets.

S-35

Korea Development Bank

Notes to the Interim Separate Financial Statements

June 30, 2024 and 2023 (Unaudited), and December 31, 2023

(In millions of won)

3. Significant Accounting Policies, Continued

The following non-exhaustive list of information may be relevant in assessing changes in credit risk:

• Significant changes in internal price indicators of credit risk as a result of a change in credit risk since inception

• Other changes in the rates or terms of an existing financial instrument that would be significantly different if the instrument was newly originated or issued at the reporting date

• An actual or expected significant change in the financial instrument’s external credit rating

• An actual or expected internal credit rating downgrade for the borrower or decrease in behavioural scoring used to assess credit risk internally

• An actual or expected significant change in the operating results of the borrower

• Past due information

(i) Forward-looking information

The Bank uses forward-looking information, when it determines whether the credit risk has increased significantly since initial recognition and measures expected credit losses.

The Bank assumes the risk component has a certain correlation with the business cycle, and calculates the expected credit loss by reflecting the forward-looking information with macroeconomic variables on the measurement inputs.

Forward looking information used in calculation of expected credit loss is derived after comprehensive consideration of a variety of factors including scenario in management planning, worst-case scenario used for stress testing, third party forecast, and others.

(ii) Measuring expected credit losses on financial assets at amortized cost

The amount of the loss on financial assets at amortized cost is measured as the difference between the asset’s carrying amount and the present value of estimated future cash flows discounted at the financial asset’s original effective interest rate. The Bank estimates expected future cash flows for financial assets that are individually significant (individual assessment of impairment).

For financial assets that are not individually significant, the Bank collectively estimates expected credit loss by grouping loans with homogeneous credit risk profile (collective assessment of impairment).

Individual assessment of impairment

Individual assessment of impairment losses is calculated using management’s best estimate on present value of expected future cashflows. The Bank uses all the available information including operating cash flow of the borrower and net realizable value of any collateral held.

Collective assessment of impairment

Collective assessment of loss allowance involves historical loss experience along with incorporation of forward-looking information. Such process incorporates factors such as type of collateral, product and borrowers, credit rating, size of portfolio and recovery period and applies probability of default on a group of assets and loss

S-36

Korea Development Bank

Notes to the Interim Separate Financial Statements

June 30, 2024 and 2023 (Unaudited), and December 31, 2023

(In millions of won)

3. Significant Accounting Policies, Continued

given default by type of recovery method. Also, the expected credit loss model involves certain assumption to determine input based on loss experience and forward-looking information. These models and assumptions are periodically reviewed to reduce gap between loss estimate and actual loss experience.

The expected credit loss for financial assets measured at amortized cost is recognized as the loss allowance, and when the financial asset is determined to be irrecoverable, the carrying amount and loss allowance are decreased. If financial assets previously written off are recovered, the loss allowance is increased and the difference is recognized in the current profit or loss.

(iii) Measuring expected credit losses on financial assets at fair value through other comprehensive income

Measuring method of expected credit losses on financial assets at fair value through other comprehensive income is equal to the method of financial assets at amortized cost, except for changes in loss allowances that are recognized as other comprehensive income. Amounts recognized in other comprehensive income for sale or repayment of financial assets at fair value through other comprehensive income are reclassified to profit or loss.

(9) Derivative financial instruments including hedge accounting

Derivative financial instruments are initially recognised at fair value at the inception of the contract and re-estimated at fair value subsequently. The recognition of profit or loss due to changes in fair value of derivative instruments is as described below:

(i) Hedge accounting

Derivative financial instruments are accounted differently depending on whether hedge accounting is applied, and therefore, are classified into trading purpose derivatives and hedging purpose derivatives.

Upon the transaction of hedging purpose derivatives, two different types of hedge accounting are applied; a fair value hedge, and a cash flow hedge. A fair value hedge is a hedge of the exposure to changes in fair value of a recognised asset or liability or an unrecognised firm commitment, or an identified portion of such an asset, liability or firm commitment, that is attributable to a particular risk and could affect profit or loss. A cash flow hedge is a hedge of the exposure to variability in cash flows that (i) is attributable to a particular risk associated with a recognised asset or liability (such as all or some future interest payments on variable rate debt) or a highly probable forecast transaction and (ii) could affect profit or loss.

At the inception of the hedge relationship, the Bank formally documents the relationship between the hedged item and the hedging instrument, including the nature of the risk, the objective and strategy for undertaking the hedge, and the method that will be used to assess the effectiveness of the hedging relationship.

Fair value hedge

For designated and qualifying fair value hedges, the change in the fair value of a hedging derivative is recognised in profit or loss in the statement of comprehensive income. Meanwhile, the change in the fair value of the hedged item, attributable to the risk hedged, is recorded as part of the carrying value of the hedged item and is also recognised in profit or loss in the statement of comprehensive income. When the hedge no longer meets the criteria for hedge accounting, the hedge relationship is terminated. For hedged item recorded at amortized

S-37

Korea Development Bank

Notes to the Interim Separate Financial Statements

June 30, 2024 and 2023 (Unaudited), and December 31, 2023

(In millions of won)

3. Significant Accounting Policies, Continued

cost, the difference between the carrying value of the hedged item on termination and the face value is amortized over the remaining term of the original hedge using the EIR.

Cash flow hedge

For designated and qualifying cash flow hedges, the effective portion of gain or loss on the hedging instruments is initially recognised directly in equity. The ineffective portion of the gain or loss on the hedging instrument is recognised immediately in the statement of comprehensive income. When the hedged cash flow affects the profit or loss in statement of comprehensive income, the gain or loss on the hedging instrument is recorded in the corresponding income or expense line in profit or loss in the statement of comprehensive income.

When a hedge no longer meets the criteria for hedge accounting, any cumulative gain or loss existing in equity at that time remains in equity and is recognised when the hedged forecasted transaction is ultimately recognised in the statement of comprehensive income. When a forecasted transaction is no longer expected to occur, the cumulative gain and loss that was reported in equity is immediately transferred to profit or loss in the statement of comprehensive income.

Hedges of net investments in foreign operations

The Bank designates non-derivative financial instruments as hedging instruments for foreign currency risk arising from net investments in foreign operations and recognises the portion of the gain or loss on the hedging instrument that is determined to be an effective hedge in other comprehensive income. The cumulative amounts recognised in other comprehensive income relating to both the foreign exchange differences arising on translation of the results and financial position of the foreign operation and the gain or loss on the hedging instrument that is determined to be an effective hedge of the net investment are reclassed from equity to profit or loss as a reclassification adjustment when the Bank disposes of the foreign operation.

(ii) Trading purpose derivatives

For trading purpose derivatives transaction, changes in the fair value of derivatives are recognised in net income.

(10) Day one profit or loss recognition

For financial instruments classified as level 3 on the fair value level hierarchy measured using assess variables not observable in the market, the difference between the fair value at initial recognition and the transaction price, which is equivalent to Day one profit or loss, is amortized by using the straight-line method over time.

(11) Property and equipment

The Bank’s property and equipment are recognised at the carrying amount at historical costs less accumulated depreciation and accumulated impairment in value. Historical costs include the expenditures directly related to the acquisition of assets.

Subsequent costs are recognised in the carrying amount of assets or, if appropriate, as separate assets if the probabilities future economic benefits associated with the assets will flow into the Bank and the costs can be

S-38

Korea Development Bank

Notes to the Interim Separate Financial Statements

June 30, 2024 and 2023 (Unaudited), and December 31, 2023

(In millions of won)

3. Significant Accounting Policies, Continued

measured reliably; the carrying amount of the replaced part is derecognised. Furthermore, any other repairs or maintenances are charged to profit or loss as incurred.

Land is not depreciated. Depreciation on other assets is calculated using the straight-line method to the amount of residual value less acquisition cost over the following estimated useful lives:

Type	Useful lives (years)
Buildings	20 ~ 50
Structure	10 ~ 40
Movable property	4

Property and equipment are impaired when the carrying amount exceeds the recoverable amount. The Bank assesses residual value and economic life of its assets at each reporting date and adjusts useful lives when necessary. Any gain or loss arising from the disposal of the asset (calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is recognised in non-operating income (expense) in the statement of comprehensive income.

(12) Investment property

The Bank classifies property held for rental income or benefits from capital appreciation as investment property. Investment property is measured initially at cost, including transaction costs. Subsequent to initial recognition, the cost model is applied. Subsequent to initial recognition, an item of investment property is carried at its cost less any accumulated depreciation and any accumulated impairment loss.

Investment properties are derecognised either when they have been disposed of or when the investment property is permanently withdrawn from use and no future economic benefit is expected from its disposal. The difference between the net disposal proceeds and the carrying amount of the asset is recognised in the statement of comprehensive income in the period of de-recognition. Reclassification to other account is made if there is a change in use of corresponding investment property.

Depreciation of investment property is calculated using the straight-line method over its estimated useful lives as follows:

Type	Useful lives (years)
Buildings		20 ~ 50
Structure		10 ~ 40

(13) Intangible assets

An intangible asset is recognised only when its cost can be measured reliably, and the probabilities future economic benefits from the asset will flow into the Bank are high. Separately acquired intangible assets are recognised at the acquisition cost, and subsequently, the cost less accumulated depreciation and accumulated impairment is recognised as the carrying amount.

Intangible assets with finite lives are amortized over the four-year to 30-year period of useful economic lives using the straight-line method. At the end of each reporting period, the Bank reviews intangible assets for any evidence that indicate impairment, and upon the presence of such evidence, the Bank estimates the amount recoverable and recognises the loss accordingly.

S-39

Korea Development Bank

Notes to the Interim Separate Financial Statements

June 30, 2024 and 2023 (Unaudited), and December 31, 2023

(In millions of won)

3. Significant Accounting Policies, Continued

Intangible assets with indefinite useful lives are not amortized but are tested for impairment annually. Furthermore, the Bank reviews such intangible assets to determine whether it is appropriate to consider these assets to have indefinite useful lives. If in the case the Bank concludes an asset is not qualified to be classified as non-finite, prospective measures are taken to consider such an asset as finite.

(14) Leases

The Bank recognizes a right-of-use asset representing its right to use the underlying leased asset and a lease liability representing its obligation to make lease payments at the commencement date of the lease. The Bank elected not to apply the requirements to the short-term leases and leases of low value assets.

Right-of-use asset

The right-of-use asset is measured at its cost less subsequent accumulated depreciation and accumulated impairment loss with adjustments reflected arising from remeasurements of the lease liability. The cost of the right-of-use asset comprise the amount of the initial measurement of the lease liability, any initial direct costs incurred by the lessee and any lease payments made at or before the commencement date, less any lease incentive received. The right-of-use asset is depreciated over the shorter of the asset’s useful life and the lease term on a straight-line basis from the commencement date of the lease.

Lease liabilities

At the commencement date, the lease liability is measured at present value of the lease payments that are not paid at that date. Lease payments include fixed payments (including in-substance fixed payments), less any lease incentives receivable, variable lease payments that depend on an index or a rate, amounts expected to be payable by the lessee under residual value guarantees, the exercise price of a purchase option if the lessee is reasonably certain to exercise that option, and payments of penalties for terminating the lease, if the lease term reflects the lessee exercising an option to terminate the lease. The variable lease payments that do not depend on an index or a rate are recognized as an expense in the period in which the event or condition that triggers those payments occurs.

When measuring the present value, the lease payments are discounted using the interest rate implicit in the lease. If such implicit rate cannot be readily determined, the Bank uses the Bank’s incremental borrowing rate. The lease liability is subsequently increased by the amount of interest expenses recognized on the lease liability and reduced by the lease payments made.

Short-term lease and lease of low-value assets

The Bank does not apply the requirements of lessee accounting to short-term leases and leases of low-value assets. The Bank recognizes the lease payments associated with these leases as expenses on a straight-line basis over the lease term.

(15) Impairment of non-financial assets

The Bank tests for any evidence of impairment in assets and reviews whether the impairment has taken place by estimating the recoverable amount, at the end of each reporting period. The recoverable amount is the higher of the fair value less cost and value in use of an asset.

S-40

Korea Development Bank

Notes to the Interim Separate Financial Statements

June 30, 2024 and 2023 (Unaudited), and December 31, 2023

(In millions of won)

3. Significant Accounting Policies, Continued

Except for impairment losses in respect of goodwill which are never reversed, an impairment loss is reversed if there has been a change in the estimates used to determine the recoverable amount. The reversal is limited so that the carrying amount of the asset does not exceed its recoverable amount, nor exceeds the carrying amount that would have been determined, net of depreciation, had no impairment loss been recognised for the asset in prior years.

(16) Assets held for sale

Non-current assets, or disposal groups comprising assets and liabilities, that are expected to be recovered primarily through sale rather than through continuing use, are classified as held for sale. To be classified as held for sale, the asset (or disposal group) must be available for immediate sale in its present condition and its sale must be highly probable. The assets or disposal group that are classified as assets held for sale are measured at the lower of their carrying amount and fair value less cost to sell. The Bank recognizes an impairment loss for any initial or subsequent write-down of an asset (or disposal group) to fair value less costs to sell, and a gain for any subsequent increase in fair value less costs to sell, up to the cumulative impairment loss previously recognized.

Non-current assets that are classified as held for sale or part of a disposal group classified as held for sale are not depreciated (or amortized).

(17) Non-derivative financial liabilities

The Bank classifies non-derivative financial liabilities into financial liabilities at fair value through profit or loss or other financial liabilities, in accordance with the substance of the contractual arrangement and the definitions of financial liability. The Bank recognizes these financial liabilities in the statement of financial position when the Bank becomes a party to the contractual provisions of the financial liability.

(i) Financial liabilities at fair value through profit or loss

Financial liabilities at fair value through profit or loss include financial liabilities held for trading and financial liabilities designated at FVTPL upon initial recognition. Financial liabilities and derivatives are classified as financial instruments held for trading if they are acquired for repurchasing soon. Financial liabilities are classified as financial liabilities at FVTPL upon initial recognition, if the profit or loss from the liabilities indicates to be more purpose-appropriate to be recognised as profit or loss. Financial liabilities at FVTPL are designated at fair value in subsequent measurements, and any related un-realized profit or loss is recognised as profit or loss. In addition, for the amount of change in the fair value of the financial liability that is attributable to changes in the credit risk of that liability, the Bank present this change in other comprehensive income, and does not recycle this other comprehensive income to profit or loss, subsequently.

(ii) Financial liabilities measured at amortized cost

Financial liabilities measured at amortized cost are recognised at fair value less cost less transaction cost upon initial recognition, and subsequently at amortized costs. The difference between the proceeds (net of transaction cost) and the redemption value is recognised in the statement of comprehensive income over the periods of the liabilities using the effective interest method.

S-41

Korea Development Bank

Notes to the Interim Separate Financial Statements

June 30, 2024 and 2023 (Unaudited), and December 31, 2023

(In millions of won)

3. Significant Accounting Policies, Continued

Fees paid on the establishment of a loan facility are recognised as transaction costs of the loan, if the probability that some or all the facility will be drawn down is high. If, however, there is not enough evidence to conclude a draw-down of some or all the facility will occur, the fee is capitalized as a prepayment for liquidity services and amortized over the period of the facility to which it relates.

(18) Employee benefits

(i) Short-term employee benefits

Short-term employee benefits are employee benefits that are due to be settled wholly before 12 months after the end of the period in which the employees render the related service. When an employee has rendered service to the Bank during an accounting period, the Bank recognises the undiscounted amount of short-term employee benefits expected to be paid in exchange for that service.

(ii) Retirement benefits: defined contribution plans

A defined contribution plan is a pension plan under which the Bank pays fixed contributions into a separate fund. The Bank is no longer responsible for any foreseeable future liability after a certain amount or percentage of money is set aside for defined contribution plans. If the pension plan allows for early retirement, payments are recognised as employee benefits. If the contribution already paid exceeds the contribution due for service before the end of the reporting period, the Bank recognises that excess as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund.

(iii) Retirement benefits: defined benefit plans

The Bank classifies all the pensions as defined benefit plans except defined contribution plans. The Bank’s net obligation in respect of defined benefit plans is calculated by estimating the amount of future benefit that employees have earned in the current and prior periods, discounting that amount and deducting the fair value of any plan assets. The calculation of defined benefit obligations is performed annually by a qualified actuary using the projected unit credit method. The present value of the defined benefit obligation is determined by discounting the estimated future cash outflows using interest rates of high-quality corporate bonds that are denominated in the currency in which the benefits will be paid and have terms to maturity like the terms of the related pension liability.

Remeasurements of the net defined benefit liabilities (assets), which comprise actuarial gains and losses, the return on plan assets (excluding interest) and the effect of the asset ceiling (if any, excluding interest), are recognised immediately in other comprehensive income.

(19) Provisions

Provisions are recognized when the Bank has a present legal or constructive obligation because of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation.

(20) Financial guarantees

Financial guarantee contracts are contracts that require the issuer (the Bank) to make specified payments to reimburse the holder for a loss it incurs because a specified debtor fails to make payments when due, in

S-42

Korea Development Bank

Notes to the Interim Separate Financial Statements

June 30, 2024 and 2023 (Unaudited), and December 31, 2023

(In millions of won)

3. Significant Accounting Policies, Continued

accordance with the original or changed terms of a debt instrument. Financial guarantees are initially recognized in the financial statements at fair value on the date the guarantee was given. Subsequent to initial recognition, the Bank’s liabilities under such guarantees are measured at the higher of:

• The amount determined in accordance with K-IFRS 1109 ‘Financial Instruments’ and

• The initial amount recognized, less, when appropriate, cumulative amortization recognized in accordance with K-IFRS 1115 ‘Revenue from Contracts with Customers’.

(21) Securities under resale or repurchase agreements

Securities purchased under agreements to resell are recorded as other loans and receivables and the related interest from these securities is recorded as interest income; securities sold under agreements to repurchase are recorded as other borrowings, and the related interest from these securities is recorded as interest expense.

(22) Interest income and expense

Interest income and expense are recognized in profit or loss using the effective interest method. The effective interest method measures the amortized costs of financial instruments and allocates the interest income or expense during the related period.

Upon the calculation of the effective interest rate, the Bank estimates future cash flows by taking into consideration all contractual terms of the financial instrument, but not future credit loss. The calculation also reflects any fees or points paid or received, transaction costs and any related premiums or discounts. In the case that the cash flow and expected duration of a financial instrument cannot be estimated reliably, the effective interest rate is calculated by the contractual cash flow during the contract period.

Once an impairment loss has been recognized on a financial asset or a group of similar assets, subsequent interest income is recognized on the interest rate that was used to discount future cash flow for measuring the impairment loss.

(23) Fees and commission income

Fees and commission income and expense are classified as follows according to related regulations:

(i) Fees and commission from financial instruments

Fees and commission income and expense that are integral to the effective interest rate on a financial asset or liability are included in the measurement of the effective interest rate. It includes those related to evaluation of the borrowers’ financial status, guarantee, collateral, other agreements and related evaluation as well as business transaction, rewards for activities, such as document preparation and recording and setup fees incurred during issuance of financial liabilities. However, when financial instruments are classified as financial instruments at fair value through profit or loss, fees and commission are recognized as revenue upon initial recognition.

(ii) Fees and commission from services

Fees and commission income charged in exchange for services to be performed during a certain period of time such as asset management fees, consignment fees and assurance service fees are recognized as the related

S-43

Korea Development Bank

Notes to the Interim Separate Financial Statements

June 30, 2024 and 2023 (Unaudited), and December 31, 2023

(In millions of won)

3. Significant Accounting Policies, Continued

services are performed. When a loan commitment is not expected to result in the draw-down of a loan and K-IFRS 1039 ‘Financial Instrument: Recognition and Measurement’ is not applied for the commitment, the related loan commitment fees are recognized as revenue proportionally to time over the commitment period.

(iii) Fees and commission from significant transaction

Fees and commission from significant transactions, such as trading stocks and other securities, negotiation and mediation activities for third parties, for instance business transfer and takeover, are recognized when transactions are completed.

(24) Dividend income

Dividend income is recognized upon the establishment of the Bank’s right to receive the payment.

(25) Income tax expense

Income tax expense comprises current and deferred income tax. Current income tax and deferred income tax are recognized in profit or loss except to the extent that the tax arises from a transaction or event, which is recognized in other comprehensive income or directly in equity, or a business combination.

The Bank recognizes deferred income tax liabilities for all taxable temporary differences associated with investments in subsidiaries, associates, except to the extent that the Bank can control the timing of the reversal of the temporary difference and it is probable that the temporary difference will not reverse in the foreseeable future. The Bank recognizes deferred income tax assets for all deductible temporary differences arising from investments in associates, to the extent that it is probable that the temporary difference will reverse in the foreseeable future and taxable profit will be available against which the temporary difference can be utilized.

Deferred income tax assets and liabilities are measured at the tax rates that are expected to apply to the reporting period when the assets are realized, or the liabilities settled, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period.

The measurement of deferred income tax assets and liabilities reflects the income tax effects that would follow from the manner in which the Bank expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.

The carrying amount of a deferred income tax asset is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow the benefit of part or all of that deferred income tax asset to be utilized.

Deferred income tax assets and liabilities are off-set only if the Bank has a legally enforceable right to off-set the related current income tax assets and liabilities, and the assets and liabilities relate to income tax levied by the same tax authority and are intended to be settled on a net basis.

(26) Accounting for trust accounts

The Bank, for financial reporting, differentiates trust assets from identifiable assets according to the Financial Investment Services and Capital Markets Act. Furthermore, the Bank receives trust fees from the application, management and disposal of trust assets, and appropriates such amounts for fees from trust accounts.

S-44

Korea Development Bank

Notes to the Interim Separate Financial Statements

June 30, 2024 and 2023 (Unaudited), and December 31, 2023

(In millions of won)

3. Significant Accounting Policies, Continued

Meanwhile, in the case the fee from an unspecified principal or interests guaranteed money in trust does not meet the principal or interest amount, even after appropriating deficit with trust fees and special reserve, the Bank fills in the remaining deficit in the trust account and appropriates such amounts for losses on trust accounts.

(27) Regulatory reserve for credit losses

When the total sum of allowance for possible credit losses is lower than the amount prescribed in Article 29(1) of the Regulations on Supervision of Banking Business, the Bank records the difference as regulatory reserve for credit losses at the end of each reporting period.

In the case that the existing regulatory reserve for credit losses exceeds the amount needed to be set aside at the reporting date, the surplus may be reversed. Furthermore, in the case that undisposed deficit exists, regulatory reserve for credit losses is saved from the time the undisposed deficit is disposed.

(28) Earnings per share

The Bank represents its diluted and basic earnings per common share in the separate statement of comprehensive income. Basic earnings per share (EPS) is calculated by dividing net profit attributable to shareholders of the Bank by the weighted average number of common shares outstanding during the reporting period. Diluted earnings per share is calculated by adjusting net profit attributable to common shareholders of the Bank, considering dilution effects from all potential common shares, and the weighted average number of common shares outstanding.

(29) Corrections of errors

Prior period errors shall be corrected by retrospective restatement in the first set of financial statements authorised for issue after their discovery except to the extent that it is impracticable to determine either the period-specific effects or the cumulative effect of the error.

4. Cash and Due from Banks

(1) Cash and due from banks as of June 30, 2024 and December 31, 2023 are as follows:

	June 30, 2024		December 31, 2023
Cash	W	71,123		65,738
Due from banks in Korean won:
Due from Bank of Korea		3,607,069		1,972,258
Other due from banks in Korean won		50,937		45,715
		3,658,006		2,017,973
Due from banks in foreign currencies / off-shores		8,951,566		6,576,097
	W	12,680,695		8,659,808

S-45

Korea Development Bank

Notes to the Interim Separate Financial Statements

June 30, 2024 and 2023 (Unaudited), and December 31, 2023

(In millions of won)

4. Cash and Due from Banks, Continued

(2) Restricted due from banks as of June 30, 2024 and December 31, 2023 are as follows:

	June 30, 2024		December 31, 2023
Reserve deposit	W	3,993,298		2,302,201
Deposit of monetary stabilization account		20,000		150,000
Others		316,476		308,676
	W	4,329,774		2,760,877

5. Securities Measured at FVTPL

(1) Details of securities measured at fair value through profit or loss as of June 30, 2024 and December 31, 2023 are as follows:

	June 30, 2024
	Face value		Acquisition cost		Fair value (Carrying amounts)
Securities denominated in Korean won:
Stocks	W	—		2,201,733		2,075,004
Equity investments		—		1,003,880		1,156,004
Beneficiary certificates		—		11,755,409		12,422,170
Government and public bonds		2,152,000		2,126,937		2,229,092
Financial bonds		350,000		349,155		349,891
Others		100,470		100,184		100,410
		2,602,470		17,537,298		18,332,571
Securities denominated in foreign currencies/off-shores:
Stocks		—		27,420		29,002
Equity investments		—		83,806		170,409
Beneficiary certificates		—		428,390		466,891
		—		539,616		666,302
	W	2,602,470		18,076,914		18,998,873

S-46

Korea Development Bank

Notes to the Interim Separate Financial Statements

June 30, 2024 and 2023 (Unaudited), and December 31, 2023

(In millions of won)

5. Securities Measured at FVTPL, Continued

	December 31, 2023
	Face value		Acquisition cost		Fair value (Carrying amounts)
Securities denominated in Korean won:
Stocks	W	—		2,151,564		2,044,046
Equity investments		—		905,853		1,002,008
Beneficiary certificates		—		9,411,162		9,887,428
Government and public bonds		1,686,000		1,637,507		1,784,605
Financial bonds		600,000		597,206		601,369
Others		50,470		50,234		50,372
		2,336,470		14,753,526		15,369,828
Securities denominated in foreign currencies/off-shores:
Stocks		—		27,398		26,918
Equity investments		—		104,369		157,892
Beneficiary certificates		—		477,542		489,767
Debt securities		14,183		13,876		14,151
		14,183		623,185		688,728
	W	2,350,653		15,376,711		16,058,556

(2) Securities measured at fair value through profit or loss with disposal restrictions as of June 30, 2024 and December 31, 2023 are as follows:

	June 30, 2024
Company	Number of shares		Carrying amount		Restricted period
TnJ Co., Ltd.		167,989	W	1,730	Undecided
National Happiness Fund Co., Ltd.		34,066		—	Undecided
SEMITECH Co., Ltd.		33,187		368	Undecided
Hongin Chemical Co., Ltd.		5,060		—	Undecided
		240,302	W	2,098
	December 31, 2023
Company	Number of shares		Carrying amount		Restricted period
National Happiness Fund		34,066	W	14,884	Undecided
SEMITECH Co., Ltd.		33,187		368	Undecided
Hongin Chemical Co., Ltd.		5,060		—	Undecided
		72,313		15,252

S-47

Korea Development Bank

Notes to the Interim Separate Financial Statements

June 30, 2024 and 2023 (Unaudited), and December 31, 2023

(In millions of won)

6. Securities Measured at FVOCI

(1) Details of securities measured at FVOCI as of June 30, 2024 and December 31, 2023 are as follows:

	June 30, 2024
	Face value		Acquisition cost		Fair value (Carrying amounts)
Securities denominated in Korean won:
Stocks and equity investments	W	—		13,364,051		13,796,437
Government and public bonds		1,125,000		1,119,692		1,122,372
Financial bonds		1,530,000		1,532,260		1,536,975
Corporate bonds		3,674,393		3,673,527		3,597,180
Others		1,350,680		1,350,680		3,369,379
		7,680,073		21,040,210		23,422,343
Securities denominated in foreign currencies/off-shores:
Equity securities		—		138		1,178
Debt securities		13,036,843		13,200,460		12,505,756
		13,036,843		13,200,598		12,506,934
Loaned securities:
Debt securities		60,000		59,444		60,139
	W	20,776,916		34,300,252		35,989,416
	December 31, 2023
	Face value		Acquisition cost		Fair value (Carrying amounts)
Securities denominated in Korean won:
Stocks and equity investments	W	—		11,277,639		11,709,407
Government and public bonds		1,575,000		1,561,815		1,558,377
Financial bonds		1,380,000		1,372,473		1,381,371
Corporate bonds		4,670,160		4,667,812		4,558,013
Others		1,500,680		1,500,680		3,933,681
		9,125,840		20,380,419		23,140,849
Securities denominated in foreign currencies/off-shores:
Equity securities		—		498		1,128
Debt securities		11,186,342		11,297,509		10,706,746
		11,186,342		11,298,007		10,707,874
Loaned securities:
Debt securities		40,000		39,483		39,341
	W	20,352,182		31,717,909		33,888,064

Equity instruments that are acquired due to debt-to-equity swap, investment in kind and investment in ventures and small and medium-sized enterprises are designated as measured at FVOCI. The realized pre-tax

S-48

Korea Development Bank

Notes to the Interim Separate Financial Statements

June 30, 2024 and 2023 (Unaudited), and December 31, 2023

(In millions of won)

6. Securities Measured at FVOCI, Continued

income and loss on disposal of equity securities for the six-month periods ended June 30, 2024 and 2023 andW391,821 million of gain andW25,153 million of gain, respectively, which are directly recognized in retained earnings.

(2) Changes in securities measured at FVOCI for the six-month periods ended June 30, 2024 and 2023 are as follows:

	2024			2023
Beginning balance	W	33,888,064			37,684,919
Acquisition		6,637,590			3,110,755
Disposal		(4,483,379	)		(4,491,963	)
Change due to amortization		12,943			8,627
Change in fair value		(398,894	)		36,782
Reclassification		(544,800	)		—
Foreign exchange differences		840,590			302,770
Others (*)		37,302			1
Ending balance	W	35,989,416			36,651,891

(*) For the six-month period ended June 30, 2024, others represent the increase in securities measured at FVOCI including shares of Inhwa Precision Co., Ltd. and KODACO Co., Ltd. acquired through exercise of conversion rights of the convertible bonds, shares of DPECO Co., Ltd. and Daewon Steel & Pipe Co., Ltd. acquired in accordance with the rehabilitation plan under the Debtor Rehabilitation and Bankruptcy Act, the shares of Aero Space Technology Of Korea Inc. acquired in accordance with the changes in creditor rights as resolved by the Financial Creditors’ Council and others. For the six-month period ended June 30, 2023, others represent the increase in securities measured at FVOCI including shares of Dae Yeong Metal Co., Ltd., Chew Young Roo Co., Ltd.

(3) Securities measured at FVOCI with disposal restrictions in securities measured at FVOCI as of June 30, 2024 and December 31, 2023 are as follows:

	June 30, 2024
Company	Number of shares		Carrying amount		Restricted period
High Gain Antenna Co., Ltd.		18,138	W	424	Undecided
UAMCO., Ltd.		113,050		194,907	Undecided
Kumho Tire Co., Inc.		21,339,320		139,559	Until July 6, 2024 (*)
ASTK Inc.		25,380,000		16,827	Until April 8, 2025
SYSCON Co., Ltd.		1,139,325		13,610	One month from the listing date
SM LAB Co., Ltd.		296,624		5,038	One month from the listing date
		48,286,457	W	370,365

(*) From July 6, 2021, 50% of the shares may be sold every year.

S-49

Korea Development Bank

Notes to the Interim Separate Financial Statements

June 30, 2024 and 2023 (Unaudited), and December 31, 2023

(In millions of won)

6. Securities Measured at FVOCI, Continued

	December 31, 2023
Company	Number of shares		Carrying amount		Restricted period
High Gain Antenna Co., Ltd.		18,138	W	372	Undecided
UAMCO., Ltd.		113,050		196,670	Undecided
Kumho Tire Co., Inc.		21,339,320		115,019	Until July 6, 2024 (*)
		21,470,508	W	312,061

(*) From July 6, 2021, 50% of the shares may be sold every year.

(4) Changes in the loss allowance in relation to securities measured at FVOCI for the six-month periods ended June 30, 2024 and 2023 are as follows:

	2024
	Lifetime expected credit loss
	12-month expected credit loss			Non credit- impaired			Credit- impaired		Total
Beginning balance	W	16,186			1,173			73,063		90,422
Transfer to 12-month expected credit loss		32			(32	)		—		—
Transfer to lifetime expected credit losses:
Transfer to non credit-impaired		(57	)		57			—		—
Transfer to credit-impaired		(66	)		66			—		—
Provision for (reversal of) loss allowance		3,277			(193	)		119		3,203
Disposal		(347	)		—			—		(347	)
Foreign currency translation and others		955			(386	)		1,188		1,757
Ending balance	W	19,980			685			74,370		95,035
	2023
	Lifetime expected credit loss
	12-month expected credit loss			Non credit- impaired			Credit- impaired		Total
Beginning balance	W	11,041			2,398			72,740		86,179
Transfer to 12-month expected credit loss		1,209			(1,209	)		—		—
Transfer to lifetime expected credit losses:
Transfer to non credit-impaired		—			—			—		—
Transfer to credit-impaired		—			—			—		—
Provision for (reversal of) loss allowance		4,658			(330	)		275		4,603
Disposal		(137	)		—			—		(137	)
Foreign currency translation and others		132			183			344		659
Ending balance	W	16,903			1,042			73,359		91,304

S-50

Korea Development Bank

Notes to the Interim Separate Financial Statements

June 30, 2024 and 2023 (Unaudited), and December 31, 2023

(In millions of won)

7. Securities Measured at Amortized Cost

(1) Securities measured at amortized cost as of June 30, 2024 and December 31, 2023 are as follows:

	June 30, 2024
	Amortized cost			Fair value
Securities denominated in Korean won:
Government and public bonds	W	4,035,674			4,035,674
Financial bonds		2,191,286			2,190,917
Corporate bonds		2,443,466			2,434,855
		8,670,426			8,661,446
Securities denominated in foreign currencies:
Corporate bonds		166,086			166,086
Less: loss allowance		(8,980	)
	W	8,827,532			8,827,532
	December 31, 2023
	Amortized cost			Fair value
Securities denominated in Korean won:
Government and public bonds	W	3,841,102			3,841,102
Financial bonds		2,456,764			2,456,431
Corporate bonds		2,141,858			2,132,972
		8,439,724			8,430,505
Securities denominated in foreign currencies:
Corporate bonds		152,683			152,683
Less: loss allowance		(9,219	)
	W	8,583,188			8,583,188

(2) Changes in securities measured at amortized cost for the six-month periods ended June 30, 2024 and 2023 are as follows:

	2024			2023
Beginning balance	W	8,583,188			6,355,884
Acquisition		2,346,980			1,732,183
Redemption		(2,128,648	)		(1,395,000	)
Change due to amortization		13,464			19,531
Impairment loss		—			(4,491	)
Reversal of impairment losses		239			—
Foreign currency translation		12,309			—
Ending balance	W	8,827,532			6,708,107

S-51

Korea Development Bank

Notes to the Interim Separate Financial Statements

June 30, 2024 and 2023 (Unaudited), and December 31, 2023

(In millions of won)

8. Loans Measured at FVTPL

(1) Loans measured at FVTPL as of June 30, 2024 and December 31, 2023 are as follows:

	June 30, 2024				December 31, 2023
	Amortized cost		Fair value (Carrying amounts)		Amortized cost		Fair value (Carrying amounts)
Loans in Korean won:
Privately placed corporate bonds	W	384,320		439,026		422,724		488,432
Loans in foreign currencies:
Privately placed corporate bonds		3,021		—		2,804		—
	W	387,341		439,026		425,528		488,432

(2) Gains (losses) related to loans measured at FVTPL for the six-month periods ended June 30, 2024 and 2023 are as follows:

	June 30, 2024						June 30, 2023
	Three-month period ended			Six-month period ended			Three-month period ended			Six-month period ended
Transaction gains on loans measured at FVTPL:
Transaction gains	W	3,282			3,700			4,217			5,707
Transaction losses		(1,417	)		(1,417	)		(3,828	)		(4,082	)
		1,865			2,283			389			1,625
Valuation gains (losses) on loans measured at FVTPL:
Valuation gains		388			2,416			(5,908	)		3,750
Valuation losses		5,834			(18,087	)		(10,544	)		(15,375	)
		6,222			(15,671	)		(16,452	)		(11,625	)
	W	8,087			(13,388	)		(16,063	)		(10,000	)

S-52

Korea Development Bank

Notes to the Interim Separate Financial Statements

June 30, 2024 and 2023 (Unaudited), and December 31, 2023

(In millions of won)

9. Loans Measured at Amortized Cost

(1) Loans measured at amortized cost and loss allowance for loan as of June 30, 2024 and December 31, 2023 are as follows:

	June 30, 2024					December 31, 2023
	Amortized cost			Fair value		Amortized cost			Fair value
Loans in Korean won:
Loans for working capital	W	68,097,925			67,304,933		69,353,773			68,310,908
Loans for facility development		60,965,658			59,859,714		61,149,089			59,856,968
Loans for households		126,325			125,036		143,534			142,911
Inter-bank loans		3,055,354			2,855,578		2,971,744			2,807,208
		132,245,262			130,145,261		133,618,140			131,117,995
Loans in foreign currencies:
Loans		32,774,255			32,720,288		29,820,779			29,740,998
Inter-bank loans		5,089,614			5,070,024		3,879,644			3,865,256
Off-shore loans		22,400,912			22,199,863		20,816,849			20,691,653
		60,264,781			59,990,175		54,517,272			54,297,907
Other loans:
Bills bought in foreign currency		2,460,825			2,420,098		2,033,111			1,995,544
Advances for customers on acceptances and guarantees		8,960			9		24,593			11,463
Privately placed corporate bonds		2,134,357			2,113,947		2,307,802			2,231,504
Others		9,669,879			9,448,987		10,566,404			10,403,677
		14,274,021			13,983,041		14,931,910			14,642,188
		206,784,064			204,118,477		203,067,322			200,058,090
Less:
Loss allowance for loan		(2,807,749	)				(3,099,978	)
Present value discount		(10,788	)				(11,054	)
Deferred loan origination costs and fees		27,863					25,490
	W	203,993,390					199,981,780

S-53

Korea Development Bank

Notes to the Interim Separate Financial Statements

June 30, 2024 and 2023 (Unaudited), and December 31, 2023

(In millions of won)

9. Loans Measured at Amortized Cost, Continued

(2) Changes in loss allowance for loan for the six-month periods ended June 30, 2024 and 2023 are as follows:

	2024
				Lifetime expected credit losses
	12-month expected credit loss			Non credit- impaired			Credit- impaired			Total
Beginning balance	W	587,840			1,423,097			1,089,041			3,099,978
Transfer to 12-month expected credit loss		1,876			(1,876	)		—			—
Transfer to lifetime expected credit losses:
Transfer to non credit-impaired		(167,524	)		168,129			(605	)		—
Transfer to credit-impaired		(171,779	)		(24,523	)		196,302			—
Provision for (reversal of) loss allowance		345,512			(244,424	)		(170,173	)		(69,085	)
Write-offs		—			—			(363	)		(363	)
Recovery		—			—			39,095			39,095
Disposal		—			—			(270,331	)		(270,331	)
Debt-to-equity swap		—			—			(44,302	)		(44,302	)
Foreign currency translation		12,696			14,195			6,030			32,921
Other		2,313			13,740			3,783			19,836
Ending balance	W	610,934			1,348,338			848,477			2,807,749
	2023
				Lifetime expected credit losses
	12-month expected credit loss			Non credit- impaired			Credit- impaired			Total
Beginning balance	W	289,254			2,340,836			1,367,141			3,997,231
Transfer to 12-month expected credit loss		73,175			(56,173	)		(17,002	)		—
Transfer to lifetime expected credit losses:
Transfer to non credit-impaired		(134,586	)		168,934			(34,348	)		—
Transfer to credit-impaired		(10,627	)		(122,398	)		133,025			—
Provision for (reversal of) loss allowance		269,291			(789,489	)		(116,516	)		(636,714	)
Write-offs		—			—			(47,615	)		(47,615	)
Recovery		—			—			33,570			33,570
Disposal		—			—			(188,127	)		(188,127	)
Debt-to-equity swap		—			—			(99,205	)		(99,205	)
Foreign currency translation		4,887			15,152			6,576			26,615
Other		720			5,587			(28,745	)		(22,438	)
Ending balance	W	492,114			1,562,449			1,008,754			3,063,317

S-54

Korea Development Bank

Notes to the Interim Separate Financial Statements

June 30, 2024 and 2023 (Unaudited), and December 31, 2023

(In millions of won)

9. Loans Measured at Amortized Cost, Continued

(3) Gains (losses) related to loans measured at amortized cost for the three-month and six-month periods ended June 30, 2024 and 2023 are as follows:

	June 30, 2024						June 30, 2023
	Three-month period ended			Six-month period ended			Three-month period ended		Six-month period ended
Reversal of loan allowance for loan	W	75,908			69,085			134,733		636,714
Gains (loss) on disposal of loan		(34,848	)		(27,277	)		11,341		11,341
	W	41,060			41,808			146,074		648,055

(4) Changes in net deferred loan origination costs and fees for the six-month periods ended June 30, 2024 and 2023 are as follows:

	2024			2023
Beginning balance	W	25,490			21,224
New deferrals		10,407			9,314
Amortization		(8,034	)		(7,593	)
Ending balance	W	27,863			22,945

10. Derivative Financial Instruments

The Bank’s derivative financial instruments consist of trading derivatives and hedging derivatives, depending on the nature of each transaction. The Bank enters into hedging derivative transactions mainly for the purpose of hedging risk related to changes in fair values of the underlying assets and liabilities and future cash flows.

The Bank enters into trading derivative transactions such as futures, forwards, swaps and options for arbitrage transactions by speculating on the future value of the underlying asset. Derivatives held-for trading transactions include contracts with the Bank’s clients and its liquidation position.

For the purpose of hedging the exposure to the variability of fair values and cash flows of funds in Korean won by changes in interest rate, the Bank mainly uses interest swaps or currency swaps. The main counterparties are foreign financial institutions and local banks. In addition, to hedge the exposure to the variability of fair values of bonds in foreign currencies by changes in interest rate or foreign exchange rate, the Bank mainly uses interest swaps or currency swaps.

The Bank applies net investment hedge accounting by designating non-derivative financial instruments as hedging instruments and any gain or loss on the hedging instruments relating to the effective portion of the hedge is recognised in other comprehensive income and accumulated in the foreign currency translation reserve.

Gains and losses on the hedging instrument accumulated in the foreign currency translation reserve are reclassified to profit or loss on the disposal or partial disposal of the foreign operation.

S-55

Korea Development Bank

Notes to the Interim Separate Financial Statements

June 30, 2024 and 2023 (Unaudited), and December 31, 2023

(In millions of won)

10. Derivative Financial Instruments, Continued

(1) The notional amounts outstanding for derivative contracts and the carrying amounts of the derivative financial instruments as of June 30, 2024 and December 31, 2023 are as follows:

	June 30, 2024
	Notional amounts				Carrying amounts
	Buy		Sell		Asset			Liability
Trading purpose derivative financial instruments:
Interest rate:
Futures	W	60,600		463,459		—			—
Forwards		150,000		980,000		16,103			47,255
Swaps		365,563,691		365,581,589		1,250,738			1,886,174
Options		6,402,241		18,355,790		333,565			610,531
		372,176,532		385,380,838		1,600,406			2,543,960
Currency:
Forwards		62,989,589		43,200,372		2,214,975			807,212
Swaps		72,362,595		88,673,222		5,639,289			6,379,220
Options		479,597		475,450		2,805			857
		135,831,781		132,349,044		7,857,069			7,187,289
Stock:
Options		13,291		581,500		271			18
Allowance and other adjustments		—		—		(10,689	)		(1,480	)
		508,021,604		518,311,382		9,447,057			9,729,787
Hedging purpose derivative financial instruments:
Interest rate (*):
Swaps		45,268,604		45,268,604		85,240			352,724
Currency:
Swaps		10,736,521		10,954,569		145,595			594,304
Allowance and other adjustments		—		—		(49	)		(3,161	)
		56,005,125		56,223,173		230,786			943,867
	W	564,026,729		574,534,555		9,677,843			10,673,654

(*) The expected maximum period for which derivative contracts, applied the cash flow hedge accounting, are exposed to risk of cash flow fluctuation is until April 29, 2025.

S-56

Korea Development Bank

Notes to the Interim Separate Financial Statements

June 30, 2024 and 2023 (Unaudited), and December 31, 2023

(In millions of won)

10. Derivative Financial Instruments, Continued

	December 31, 2023
	Notional amounts				Carrying amounts
	Buy		Sell		Asset			Liability
Trading purpose derivative financial instruments:
Interest rate
Futures	W	10,000		178,898		—			—
Forwards		150,000		960,000		19,805			61,903
Swaps		328,237,476		328,249,544		1,175,713			1,590,340
Options		7,060,912		14,242,205		363,225			477,698
		335,458,388		343,630,647		1,558,743			2,129,941
Currency
Forwards		49,981,210		34,750,324		1,138,767			681,269
Swaps		56,661,776		71,544,517		4,134,336			4,148,686
Options		283,101		284,177		755			2,437
		106,926,087		106,579,018		5,273,858			4,832,392
Stock
Options		3,041		334,536		278			128
Allowance and other adjustments		—		—		(11,855	)		(1,075	)
		442,387,516		450,544,201		6,821,024			6,961,386
Hedging purpose derivative financial instruments:
Interest rate (*)
Swaps		37,996,299		37,996,299		88,620			337,955
Currency
Swaps		10,411,160		10,225,034		473,876			358,865
Allowance and other adjustments		—		—		(195	)		(3,305	)
		48,407,459		48,221,333		562,301			693,515
	W	490,794,975		498,765,534		7,383,325			7,654,901

(*) The expected maximum period for which derivative contracts, applied the cash flow hedge accounting, are exposed to risk of cash flow fluctuation is until April 29, 2025.

(2) The notional amounts outstanding for the hedging instruments by period as of June 30, 2024 and December 31, 2023 are as follows:

	June 30, 2024
	Within 1 month		1~3 months		3~12 months		1~5 years		Over 5 years		Total
Interest rate:
Notional amounts outstanding	W	642,309		349,131		9,633,809		26,539,667		8,103,688		45,268,604
Currency:
Notional amounts outstanding		390,634		742,840		1,964,059		6,314,215		1,324,773		10,736,521

S-57

Korea Development Bank

Notes to the Interim Separate Financial Statements

June 30, 2024 and 2023 (Unaudited), and December 31, 2023

(In millions of won)

10. Derivative Financial Instruments, Continued

	December 31, 2023
	Within 1 month		1~3 months		3~12 months		1~5 years		Over 5 years		Total
Interest rate:
Notional amounts outstanding	W	894,844		1,337,050		4,089,937		24,151,788		7,522,680		37,996,299
Currency:
Notional amounts outstanding	W	701,180		622,774		1,970,389		5,721,728		1,395,089		10,411,160

(3) Details of the balances of the hedging instruments by risk type as of June 30, 2024 and December 31, 2023 are as follows:

	June 30, 2024
	Notional amounts				Balances				Changes in fair value for the period
	Buy		Sell		Assets		Liabilities
Cash flow hedge accounting:
Interest rate risk:
Swaps	W	97,244		97,244		—		—		(630	)
Fair value hedge accounting:
Interest rate risk:
Swaps		45,171,360		45,171,360		85,240		352,724		(150,529	)
Currency risk:
Swaps		10,736,521		10,954,569		145,595		594,304		(428,600	)
		55,907,881		56,125,929		230,835		947,028		(579,129	)
	W	56,005,125		56,223,173		230,835		947,028		(579,759	)
	December 31, 2023
	Notional amounts				Balances				Changes in fair value for 2023
	Buy		Sell		Assets		Liabilities
Cash flow hedge accounting:
Interest rate risk:
Swaps	W	90,258		90,258		—		—		(3,222	)
Fair value hedge accounting:
Interest rate risk:
Swaps		37,906,041		37,906,041		88,620		337,955		684,976
Currency risk
Swaps		10,411,160		10,225,034		473,876		358,865		428,419
		48,317,201		48,131,075		562,496		696,820		1,113,395
	W	48,407,459		48,221,333		562,496		696,820		1,110,173

S-58

Korea Development Bank

Notes to the Interim Separate Financial Statements

June 30, 2024 and 2023 (Unaudited), and December 31, 2023

(In millions of won)

10. Derivative Financial Instruments, Continued

(4) Details of the balances of the hedged items by risk type as of June 30, 2024 and December 31, 2023 are as follows:

	June 30, 2024
	Carrying amounts				Change in value of the hedged item						Changes in fair value for the period			Cash flow hedge reserve
	Assets		Liabilities		Assets			Liabilities
Cash flow hedge accounting:
Interest rate risk:
Debt debentures	W	—		55,568		—			—			—			2,527
Fair value hedge accounting:
Interest rate risk:
Securities measured at FVOCI		6,203,726		—		(19,786	)		—			(55,409	)		—
Debt debentures		—		38,644,482		—			(1,319,476	)		198,416			—
Other liabilities (Deposits, etc.)		—		254,407		—			(23,433	)		3,482			—
		6,203,726		38,898,889		(19,786	)		(1,342,909	)		146,489			—
Currency risk:
Debt debentures		—		10,449,119		—			412,532			429,047			—
		6,203,726		49,348,008		(19,786	)		(930,377	)		575,536			—
	W	6,203,726		49,403,576		(19,786	)		(930,377	)		575,536			2,527
	December 31, 2023
	Carrying amounts				Change in value of the hedged item						Changes in fair value for 2023			Cash flow hedge reserve
	Assets		Liabilities		Assets			Liabilities
Cash flow hedge accounting:
Interest rate risk:
Debt debentures	W	—		90,258		—			—			—			4,034
Fair value hedge accounting:
Interest rate risk:
Securities measured at FVOCI		5,423,921		—		129,096			—			89,803			—
Debt debentures		—		33,375,068		—			(1,094,649	)		(769,319	)		—
Other liabilities (Deposits, etc.)		—		110,422		—			(18,518	)		(885	)		—
		5,423,921		33,485,490		129,096			(1,113,167	)		(680,401	)		—
Currency risk:
Debt debentures		—		10,206,197		—			300,053			(425,112	)		—
		5,423,921		43,691,687		129,096			(813,114	)		(1,105,513	)		—
	W	5,423,921		43,781,945		129,096			(813,114	)		(1,105,513	)		4,034

S-59

Korea Development Bank

Notes to the Interim Separate Financial Statements

June 30, 2024 and 2023 (Unaudited), and December 31, 2023

(In millions of won)

10. Derivative Financial Instruments, Continued

(5) Details of hedge ineffectiveness recognized in profit or loss from derivatives for the six-month periods ended June 30, 2024 and 2023 are as follows:

	2024			2023
Interest rate risk	W	(4,040	)		893
Currency risk		447			3,195
	W	(3,593	)		4,088

(6) The summary of the amounts that have affected the statement of comprehensive income as a result of applying cash flow hedge accounting for the six-month periods ended June 30, 2024 and 2023 is as follows:

	2024
	Change in the value of the hedging instrument recognized in other comprehensive income		Hedge ineffectiveness recognized in profit or loss (*)		Amount reclassified from other comprehensive income to profit or loss (*)
Interest rate risk	W	(670)		40		(837	)

(*) Recognized in gains or losses related to hedging purpose derivatives.

	2023
	Change in the value of the hedging instrument recognized in other comprehensive income		Hedge ineffectiveness recognized in profit or loss (*)			Amount reclassified from other comprehensive income to profit or loss (*)
Interest rate risk	W	(727)		(27	)		-

(*) Recognized in gains or losses related to hedging purpose derivatives.

(7) Details of net investments in foreign operations as of June 30, 2024 and December 31, 2023 are as follows:

	June 30, 2024
	Changes in fair value		Other comprehensive income for hedges of net investments in foreign operations
Currency (foreign exchange risk)	W	92,131		(209,406	)
	December 31, 2023
	Changes in fair value		Other comprehensive income for hedges of net investments in foreign operations
Currency (foreign exchange risk)	W	20,402		(117,276	)

S-60

Korea Development Bank

Notes to the Interim Separate Financial Statements

June 30, 2024 and 2023 (Unaudited), and December 31, 2023

(In millions of won)

10. Derivative Financial Instruments, Continued

(8) Details of hedging instruments in hedge of net investments in foreign operations as of June 30, 2024 and December 31, 2023 are as follows:

	June 30, 2024
	Carrying amount		Changes in fair value for the period			Change in the value of the hedging instrument recognized in other comprehensive income for the period			Hedge ineffectiveness recognized in profit or loss for the period
Debentures in foreign currencies	W	1,225,992		(92,131	)		(92,131	)		-
	December 31, 2023
	Carrying amount		Changes in fair value for the year			Change in the value of the hedging instrument recognized in other comprehensive income for the year			Hedge ineffectiveness recognized in profit or loss for the year
Debentures in foreign currencies	W	1,137,428		(20,402	)		(20,402	)		-

S-61

Korea Development Bank

Notes to the Interim Separate Financial Statements

June 30, 2024 and 2023 (Unaudited), and December 31, 2023

(In millions of won)

11. Investments in Subsidiaries and Associates

(1) Investments in subsidiaries and associates as of June 30, 2024 and December 31, 2023 are as follows:

	June 30, 2024		December 31, 2023
Subsidiaries:
KDB Asia Ltd.	W	332,907		332,907
KDB Bank Europe Ltd. (*1)		149,527		126,602
KDB Ireland Ltd.		62,389		62,389
KDB Bank Uzbekistan Ltd.		47,937		47,937
Banco KDB Do Brazil S.A. (*2)		54,171		51,275
PT KDB Tifa Finance Tbk		85,288		85,288
KDB Silicon Valley LLC		118,615		118,615
KDB OCCASIO II, L.P.		143,600		138,850
KDB Synergy, L.P.		19,872		19,872
KDB Investment Co., Ltd.		70,000		70,000
KDB Biz Co., Ltd.		1,500		1,500
KDB Capital Corporation		597,290		597,290
Korea BTL Financing 1		107,914		115,086
Korea Railroad Financing 1		70,041		72,907
Korea Education Financing		33,216		35,744
KDB Infrastructure Investment Asset Management Co., Ltd.		16,843		16,843
KDB Consus Value PEF (*3)		449,431		177,353
KDB-IAP OBOR PEF (*4)		—		—
Green Initiative 2nd Private Equity Fund		135,687		135,687
KDBC Co-investment Private Equity Fund		47,957		26,751
KDB Asia PEF		88,066		88,066
KDB Small Medium Mezzanine PEF		33,350		33,350
Corporate Liquidity Assistance Agency Co., Ltd.		1,000,000		1,000,000
		3,665,601		3,354,312
Associates:
Korea Electric Power Co., Ltd.		16,921,067		16,921,067
Korea Tourism Organization		337,286		337,286
Korea Infrastructure Fund II		212,368		212,515
Korea Ocean Business Corporation		631,777		631,777
Korea Real Estate Board		58,492		58,492
Hanwha Ocean Co., Ltd. (*5)		1,821,717		1,496,741
HMM Co., Ltd. (*6)		4,530,350		3,932,440
GM Korea Company (*7)		442,530		455,904
HANJIN KAL (*8)		500,000		500,000
Korean Air Lines Co., Ltd.		330,477		330,477
TAEYOUNG ENGINEERING & CONSTRUCTION		54,719		—
Others (*9)		2,600,060		2,571,997
		28,440,843		27,448,696
	W	32,106,444		30,803,008

S-62

Korea Development Bank

Notes to the Interim Separate Financial Statements

June 30, 2024 and 2023 (Unaudited), and December 31, 2023

(In millions of won)

11. Investments in Subsidiaries and Associates, Continued

(*1) The Bank recognized reversal of impairment losses amounting toW22,925 million for the period ended June 30, 2024 andW1,150 million for the year ended December 31, 2023, respectively, due to an increase in value in use resulting from the enhancement of expected cash flows from the shares held by the Bank.

(*2) The Bank recognized a reversal of impairment losses amounting toW2,896 million for the period ended June 30, 2024 andW11,513 million for the year ended December 31, 2023 due to a decrease in value in use resulting from the decline in expected cash flows from the shares held by the Bank.

(*3) The Bank recognized impairment losses amounting toW27,064 million for the period ended June 30, 2024 andW93,109 for the year ended December 31, 2023, respectively, due to a decrease in value in use resulting from the decline of expected cash flows from the shares held by the Bank.

(*4) The decrease in the net asset value due to the decrease in the fair value of assets held prior to the previous year was considered as objective evidence of impairment and an impairment loss was recognized, resulting in a carrying value of “0”.

(*5) Due to the increase in the recoverable amount resulting from the rise in the fair value of the held shares, the Bank recognized a reversal of impairment loss ofW324,976 million for the period ended June 30, 2024 andW366,972 million for the year ended December 31, 2023.

(*6) The Bank selected the Pan Ocean-JKL consortium as the preferred bidder on December 18, 2023 for the shares of HMM Co., Ltd. for the year ended December 31, 2023. The shares of HMM Co., Ltd. was classified to the assets held for sale from the investments in associates. However, as negotiations regarding the sale of shares with the Pan Ocean-JKL consortium fell through on February 7, 2024, the shares was retrospectively reclassified the investments in associates for the period ended June 30, 2024. As a result of reclassifying the shares from the assets held for sale to the investment in associates, an impairment reversal ofW703,996 million was recognized for the year ended December 31, 2023. Additionally, due to an increase in the recoverable amount resulting from the rise in the fair value of the retained shares, an impairment reversal ofW53,110 million was recognized for the period ended June 30, 2024.

(*7) The Bank recognized a reversal of impairment loss amounting toW13,374 million for the period ended June 30, 2024 due to the decrease in value in use based on the operating cash flow. Additionally, The Bank recognized a reversal of impairment loss amounting toW79,450 million for the year ended December 31, 2023.

(*8) The Bank recognized a reversal of impairment loss amounting toW147,239 million for the year ended December 31, 2023. due to the increase in value in use based on the operating cash flow.

(*9) The Bank recognized a reversal of impairment losses amounting toW10,875 million for AJU PRIVATE EQUITY FUND NO.2 and 13 other companies for the year ended June 30, 2024. The Bank recognized a reversal of impairment losses amounting toW1,763 million for AJU PRIVATE EQUITY FUND NO.2 and 13 other companies for the year ended December 31, 2023.

(2) The market value of marketable investments in subsidiaries and associates as of June 30, 2024 and December 31, 2023 are as follows:

	Market value				Carrying amounts
	June 30, 2024		December 31, 2023		June 30, 2024		December 31, 2023
Korea Electric Power Co., Ltd.	W	4,133,874		3,992,346		16,921,067		16,921,067
HMM Co., Ltd.		4,538,442		3,939,482		4,530,350		3,228,444
HANJIN KAL		456,215		514,124		500,000		500,000
Korean Airlines Co., Ltd.		284,578		292,534		330,477		330,477
Hanwha Ocean Co., Ltd.		1,825,002		1,499,429		1,821,717		1,496,741

S-63

Korea Development Bank

Notes to the Interim Separate Financial Statements

June 30, 2024 and 2023 (Unaudited), and December 31, 2023

(In millions of won)

11. Investments in Subsidiaries and Associates, Continued

(3) The key financial information of subsidiaries and associates invested and ownership ratios as of June 30, 2024 and December 31, 2023 are as follows:

	June 30, 2024
	Country		Fiscal year end		Industry		Assets		Liabilities		Equity			Operating revenue		Net income (loss)			Total compre- hensive income (loss)			Owner- ship (%)
Subsidiaries:
KDB Asia Ltd.		Hong Kong		December		Finance	W	4,400,842		3,584,326		816,516			217,364		46,764			104,581			100.00
KDB Bank Europe Ltd.		Hungary		December		Finance		1,338,447		1,189,510		148,937			68,057		9,604			8,234			100.00
KDB Ireland Ltd.		Ireland		December		Finance		1,317,790		1,156,613		161,177			55,557		7,081			21,788			100.00
KDB Bank Uzbekistan Ltd.		Uzbekistan		December		Finance		976,195		797,454		178,741			48,529		27,642			41,386			86.32
Banco KDB Do Brazil S.A.		Brazil		December		Finance		630,834		509,423		121,411			50,237		7,845			1,301			100.00
PT KDB Tifa Finance Tbk		Indonesia		December		Finance		146,141		46,069		100,072			7,637		2,736			3,984			84.65
KDB Silicon Valley LLC		USA		December		Finance		143,563		1,760		141,803			3,481		859			11,007			100.00
KDB OCCASIO II, L.P.		Cayman Islands		December		Financial investment		176,222		1,472		174,750			7,680		7,258			19,488			90.00
KDB Synergy, L.P.		Cayman Islands		December		Financial investment		61,060		37,700		23,360			1,826		541			2,195			100.00
KDB Capital Corporation		Korea		December		Specialized Credit Finance		10,345,832		8,690,326		1,655,506			472,229		135,195			136,143			99.92
Korea BTL Financing 1 (*1)		Korea		Semi- annually		Financial investment		262,299		177		262,122			7,539		5,155			5,155			41.67
Korea Railroad Financing 1 (*1)		Korea		Semi- annually		Financial investment		144,291		6		144,285			3,879		2,604			2,604			50.00
Korea Education Financing (*1)		Korea		Semi- annually		Financial investment		67,776		8		67,768			1,724		1,352			1,352			50.00
KDB Infrastructure Investment Asset Management Co., Ltd.		Korea		December		Asset management		63,398		7,110		56,288			20,090		9,483			9,483			84.16
KDB Investment Co., Ltd.		Korea		December		Finance		90,911		1,653		89,258			5,233		1,966			1,966			100.00
KDB Biz Co., Ltd.		Korea		December		Services		10,250		4,057		6,193			16,454		2,587			2,587			100.00
KDB Consus Value PEF		Korea		December		Financial investment		17,731,557		17,581,067		150,490			949,315		(1,470	)		(508,466	)		75.92
KDB-IAP OBOR PEF (*2)		Korea		December		Financial investment		64,497		73,069		(8,572	)		—		(545	)		(1,137	)		33.52
KDB Asia PEF (*2)		Korea		December		Financial investment		235,626		189		235,437			—		3,413			18,433			50.00
KDB Small Medium Mezzanine PEF		Korea		December		Financial investment		67,672		75		67,597			1,297		(18,919	)		(18,919	)		66.67
Green Initiative 2nd Private Equity Fund (*2)		Korea		December		Financial investment		811,382		374,750		436,632			248,436		(3,493	)		(3,498	)		38.00
KDBC Co-investment Private Equity Fund		Korea		December		Financial investment		103,760		137		103,623			41,247		33,177			33,177			70.00
Corporate Liquidity Assistance Agency Co., Ltd.		Korea		December		Financial investment		1,590,499		514,999		1,075,500			20,077		7,645			7,645			100.00
Associates:
Korea Electric Power Co., Ltd.		Korea		December		Electricity generation	W	241,150,288		202,890,460		38,259,828			43,766,450		626,549			973,727			32.90
Korea Tourism Organization		Korea		December		Culture and tourism administration		1,194,261		371,549		822,712			381,074		8,110			8,162			43.58
Korea Infrastructure Financing 2 Co.		Korea		December		Financial investment		929,509		104,235		825,274			54,718		51,291			51,291			26.67
Korea Ocean Business Corporation		Korea		December		Finance		13,338,069		5,417,164		7,920,905			290,100		(143,413	)		32,555			20.80
Korea Real Estate Board		Korea		December		Appraisal		345,710		81,987		263,723			122,360		26,348			26,104			30.60

S-64

Korea Development Bank

Notes to the Interim Separate Financial Statements

June 30, 2024 and 2023 (Unaudited), and December 31, 2023

(In millions of won)

11. Investments in Subsidiaries and Associates, Continued

	June 30, 2024
	Country	Fiscal year end	Industry	Assets		Liabilities		Equity		Operating revenue		Net income (loss)		Total compre- hensive income (loss)		Owner- ship (%)
GM Korea Company (*3)	Korea	December	Manufacturing		8,690,926		4,766,913		3,924,013		7,420,041		732,945		698,241		17.02
HMM Co., Ltd.	Korea	December	Foreign cargo transportation		29,058,922		5,383,191		23,675,731		4,993,297		1,145,956		2,769,261		30.87
HANJIN KAL (*3)	Korea	December	Holding compnay		4,012,793		926,026		3,086,767		139,981		244,996		252,849		10.58
Korean Airlines Co., Ltd. (*3)	Korea	December	Air passenger transportation		31,483,227		21,141,868		10,341,359		8,693,676		727,377		767,765		3.32
Hanwha Ocean Co., Ltd. (*3)	Korea	December	Manufacturing		16,228,382		11,890,725		4,337,657		4,819,718		23,515		32,744		19.50
TAEYOUNG ENGINEERING & CONSTRUCTION (*4)	Korea	December	Construction		5,470,890		5,045,902		424,988		1,436,658		24,069		19,489		11.98

S-65

Korea Development Bank

Notes to the Interim Separate Financial Statements

June 30, 2024 and 2023 (Unaudited), and December 31, 2023

(In millions of won)

11. Investments in Subsidiaries and Associates, Continued

	December 31, 2023
	Country		Fiscal year end		Industry		Assets		Liabilities		Equity			Operating revenue		Net income (loss)			Total compre- hensive income (loss)			Owner- ship (%)
Subsidiaries:
KDB Asia (HK) Ltd.		Hong Kong		December		Finance	W	4,011,578		3,299,643		711,935			322,406		62,770			80,327			100.00
KDB Bank Europe Ltd.		Hungary		December		Finance		1,379,518		1,238,011		141,507			137,648		8,454			30,487			100.00
KDB Ireland Ltd.		Ireland		December		Finance		1,182,367		1,042,978		139,389			85,944		10,194			15,241			100.00
KDB Bank Uzbekistan Ltd.		Uzbekistan		December		Finance		888,598		751,243		137,355			83,945		47,004			33,272			86.32
Banco KDB Do Brazil S.A.		Brazil		December		Finance		637,659		517,549		120,110			131,662		14,396			25,061			100.00
PT KDB Tifa Finance Tbk		Indonesia		December		Finance		150,511		54,424		96,087			14,843		4,480			7,332			84.65
KDB Silicon Valley LLC		USA		December		Finance		132,634		1,839		130,795			8,254		3,574			5,711			100.00
KDB OCCASIO II, L.P.		Cayman Islands		December		Finance		155,351		90		155,261			18,225		15,257			14,228			90.00
KDB Synergy, L.P.		Cayman Islands		December		Finance		21,185		20		21,165			2,809		1,194			1,521			100.00
KDB Capital Corporation		Korea		December		Specialized credit finance		9,776,950		8,227,089		1,549,861			744,953		207,287			205,033			99.92
Korea BTL Financing 1 (*1)		Korea		Semi- annually		Financial investment		279,733		192		279,541			15,888		(4,753	)		(4,753	)		41.67
Korea Railroad Financing 1 (*1)		Korea		Semi- annually		Financial investment		150,436		11		150,425			9,840		9,446			9,446			50.00
Korea Education Financing (*1)		Korea		Semi- annually		Financial investment		72,755		8		72,747			3,390		(10,097	)		(10,097	)		50.00
KDB Infrastructure Investment Asset Management Co., Ltd.		Korea		December		Asset management		73,868		10,563		63,305			40,431		19,402			19,202			84.16
KDB Investment Co., Ltd.		Korea		December		Finance		131,258		1,366		129,892			10,104		3,118			3,153			100.00
KDB Biz Co., Ltd.		Korea		December		Services		7,200		3,594		3,606			27,528		678			(55	)		100.00
KDB Consus Value PEF		Korea		December		Financial investment		17,496,596		17,116,238		380,358			1,491,269		11,790			1,614,265			70.56
KDB-IAP OBOR PEF (*2)		Korea		December		Financial investment		59,864		67,299		(7,435	)		—		(6,285	)		(6,229	)		33.52
KDB Asia PEF (*2)		Korea		December		Financial investment		217,186		182		217,004			1		(241	)		14,879			50.00
KDB Small Medium Mezzanine PEF		Korea		December		Financial investment		86,610		94		86,516			4,203		972			972			66.67
Green Initiative 2nd Private Equity Fund (*2)		Korea		December		Financial investment		822,461		378,517		443,944			18,478		(7,613	)		(8,251	)		38.00
KDBC Co-investment Private Equity Fund		Korea		December		Financial investment		40,232		80		40,152			2,737		2,479			2,479			70.00
Corporate Liquidity Assistance Agency Co., Ltd.		Korea		December		Financial investment		1,672,215		604,360		1,067,855			61,571		2,893			2,893			100.00
Associates:
Korea Electric Power Co., Ltd.		Korea		December		Electricity generation	W	239,714,965		202,450,215		37,264,750			88,219,461		(4,822,549	)		(5,032,584	)		32.90
Korea Tourism Organization		Korea		December		Culture and tourism administration		1,213,223		398,563		814,660			868,365		6,129			(8,016	)		43.58
Korea Infrastructure Fund II		Korea		December		Financial investment		892,813		88,389		804,424			105,605		98,850			98,850			26.67
Korea Ocean Business Corporation		Korea		December		Finance		12,445,716		4,765,386		7,680,330			382,768		(579,708	)		(371,921	)		20.80
Korea Real Estate Board		Korea		December		Appraisal		297,439		52,429		245,010			226,450		17,028			11,072			30.60

S-66

Korea Development Bank

Notes to the Interim Separate Financial Statements

June 30, 2024 and 2023 (Unaudited), and December 31, 2023

(In millions of won)

11. Investments in Subsidiaries and Associates, Continued

	December 31, 2023
	Country	Fiscal year end	Industry	Assets		Liabilities		Equity		Operating revenue		Net income (loss)		Total compre- hensive income (loss)			Owner- ship (%)
GM Korea Company (*3)	Korea	December	Manufacturing		8,040,972		4,673,023		3,367,949		13,829,398		1,642,204		1,642,204			17.02
HMM Co., Ltd.	Korea	December	Foreign cargo transportation		25,713,363		4,272,550		21,440,813		8,400,969		968,560		1,323,878			29.20
HANJIN KAL (*3)	Korea	December	Holding company		3,784,922		931,046		2,853,876		275,727		385,139		301,583			10.58
Korean Air Lines Co., Ltd. (*3)	Korea	December	Air passenger transportation		30,391,776		20,576,568		9,815,208		16,111,796		1,061,165		814,521			3.32
Hanwha Ocean Co., Ltd. (*3)	Korea	December	Manufacturing		13,944,773		9,632,616		4,312,157		7,408,312		159,886		(10,004	)		19.50

(*1) The investees are financed by the Bank and managed by KDB Infrastructure Investments Asset Management Co., Ltd. They were included in the scope of consolidation even though the Bank holds less than half of the voting rights because the Bank is exposed to variable returns and has the ability to affect those returns through its power over the investee.

(*2) Although the Bank’s shareholding in the investee is less than 50%, it controls the investee since it is exposed, or has right to variable returns from its involvement with the investee and has the ability to affect those returns through its power over the investee.

(*3) Although the Bank’s shareholding is less than 20%, the Bank has significant influence considering the right to elect the investees’ directors and the Bank classifies the companies as associates.

(*4) Although the Bank’s shareholding is less than 20%, as the main creditor bank, the Bank have initiated management procedures that designate the Bank as the managing institution. Consequently, the Bank have acquired significant influence, such as the ability to participate in the financial and operating policies of the company, and have classified it as an associate.

S-67

Korea Development Bank

Notes to the Interim Separate Financial Statements

June 30, 2024 and 2023 (Unaudited), and December 31, 2023

(In millions of won)

12. Property and Equipment

Changes in property and equipment for the six-month periods ended June 30, 2024 and 2023 are as follows:

	2024
	January 1, 2024		Acquisition/ depreciation			Disposal			Reclassifi- cation		Foreign exchange differences			June 30, 2024
Acquisition cost:
Land	W	307,481		—			—			10,683		—			318,164
Buildings and structures		635,054		2,066			(909	)		820		—			637,031
Leasehold improvements		46,003		492			—			—		77			46,572
Vehicles		585		—			—			—		25			610
Equipment		62,730		637			(91	)		—		237			63,513
Construction in progress		1,817		—			—			—		—			1,817
Right-of-use assets (Real estate)		122,090		15,118			(13,694	)		—		5,364			128,878
Right-of-use assets (Vehicles)		11,245		520			(1,742	)		—		117			10,140
Right-of-use assets (Others)		93		—			(5	)		—		7			95
Others		170,173		2,600			(46	)		—		358			173,085
		1,357,271		21,433			(16,487	)		11,503		6,185			1,379,905
Accumulated depreciation:
Buildings and structures (*)		254,358		8,363			—			722		(1	)		263,442
Leasehold improvements		37,520		1,425			—			—		(269	)		38,676
Vehicles		544		9			—			—		22			575
Equipment (*)		51,321		2,042			(90	)		—		151			53,424
Right-of-use assets (Real estate)		51,066		16,544			(12,610	)		—		2,096			57,096
Right-of-use assets (Vehicles)		5,277		1,599			(1,742	)		—		54			5,188
Right-of-use assets (Others)		37		22			(6	)		—		1			54
Others		149,680		4,963			(46	)		—		221			154,818
		549,803		34,967			(14,494	)		722		2,275			573,273
Accumulated impairment losses:
Land		3,023		—			—			—		—			3,023
Buildings and structures		2,361		—			—			—		—			2,361
		5,384		—			—			—		—			5,384
	W	802,084		(13,534	)		(1,993	)		10,781		3,910			801,248

(*) The amounts include government grants.

S-68

Korea Development Bank

Notes to the Interim Separate Financial Statements

June 30, 2024 and 2023 (Unaudited), and December 31, 2023

(In millions of won)

12. Property and Equipment, Continued

	2023
	January 1, 2023		Acquisition/ depreciation		Disposal			Reclassifi- cation			Foreign exchange differences			June 30, 2023
Acquisition cost:
Land	W	301,959		—		—			4,678			—			306,637
Buildings and structures		627,664		1,159		—			4,327			—			633,150
Leasehold improvements		44,856		47		(730	)		625			658			45,456
Vehicles		719		—		(140	)		—			7			586
Equipment		60,156		1,626		(519	)		—			133			61,396
Construction in progress		—		2,791		—			(2,791	)		—			—
Right-of-use assets (Real estate)		126,035		27,022		(27,199	)		—			1,715			127,573
Right-of-use assets (Vehicles)		7,977		10,436		(1,464	)		—			(8,523	)		8,426
Right-of-use assets (Others)		93		—		—			—			3			96
Others		157,730		5,365		(453	)		—			188			162,830
		1,327,189		48,446		(30,505	)		6,839			(5,819	)		1,346,150
Accumulated depreciation:
Buildings and structures (*)		233,783		9,595		—			2,495			—			245,873
Leasehold improvements		36,391		1,400		(731	)		—			432			37,492
Vehicles		628		36		(141	)		—			5			528
Equipment (*)		47,728		2,278		(491	)		—			71			49,586
Right-of-use assets (Real estate)		45,968		16,677		(18,633	)		—			410			44,422
Right-of-use assets (Vehicles)		4,154		1,243		(1,437	)		—			8			3,968
Right-of-use assets (Others)		9		20		—			—			1			30
Others		140,971		4,612		(414	)		—			113			145,282
		509,632		35,861		(21,847	)		2,495			1,040			527,181
Accumulated impairment losses:
Land		3,023		—		—			—			—			3,023
Buildings and structures		2,361		—		—			—			—			2,361
		5,384		—		—			—			—			5,384
	W	812,173		12,585		(8,658	)		4,344			(6,859	)		813,585

(*) The amounts include government grants.

S-69

Korea Development Bank

Notes to the Interim Separate Financial Statements

June 30, 2024 and 2023 (Unaudited), and December 31, 2023

(In millions of won)

13. Investment Property

Changes in investment property for the six-month periods ended June 30, 2024 and 2023 are as follows:

	2024
	January 1, 2024		Acquisition/ depreciation			Reclassification			June 30, 2024
Acquisition cost:
Land	W	55,450		—			(10,683	)		44,767
Buildings and structures		55,992		—			(820	)		55,172
		111,442		—			(11,503	)		99,939
Accumulated depreciation:
Buildings and structures		34,645		877			(722	)		34,800
Accumulated impairment losses:
Land		1,197		—			—			1,197
Buildings and structures		1,778		—			—			1,778
		2,975		—			—			2,975
	W	73,822		(877	)		(10,781	)		62,164
	2023
	January 1, 2023		Acquisition/ depreciation			Reclassification			June 30, 2023
Acquisition cost:
Land	W	61,008		—			(4,678	)		56,330
Buildings and structures		59,414		—			(2,161	)		57,253
		120,422		—			(6,839	)		113,583
Accumulated depreciation:
Buildings and structures		35,734		1,381			(2,495	)		34,620
Accumulated impairment losses:
Land		1,197		—			—			1,197
Buildings and structures		1,778		—			—			1,778
		2,975		—			—			2,975
	W	81,713		(1,381	)		(4,344	)		75,988

The fair value of the Bank’s investment property, as determined based on valuation by an independent appraiser, amounts toW82,977 million andW92,553 million as of June 30, 2024 and December 31, 2023, respectively. Additionally, fair value of investment in property is classified as level 3 according to the fair value hierarchy in Note 44.

S-70

Korea Development Bank

Notes to the Interim Separate Financial Statements

June 30, 2024 and 2023 (Unaudited), and December 31, 2023

(In millions of won)

14. Intangible Assets

Changes in intangible assets for the six-month periods ended June 30, 2024 and 2023 are as follows:

	2024
	January 1, 2024		Acquisition		Disposal			Amortization			Foreign exchange differences		June 30, 2024
Development expense	W	55,907		1,024		—			(23,341	)		40		33,630
Equipment usage right		409		—		—			(26	)		28		411
Other deposits provided		11,542		—		—			—			66		11,608
Others		17,603		1,927		—			(3,658	)		270		16,142
	W	85,461		2,951		—			(27,025	)		404		61,791
	2023
	January 1, 2023		Acquisition		Disposal			Amortization			Foreign exchange differences		June 30, 2023
Development expense	W	87,593		6,047		—			(22,073	)		12		71,579
Equipment usage right		452		—		—			(25	)		15		442
Other deposits provided		11,789		—		(267	)		—			32		11,554
Others		18,655		1,999		—			(5,132	)		52		15,574
	W	118,489		8,046		(267	)		(27,230	)		111		99,149

15. Other Assets

Other assets as of June 30, 2024 and December 31, 2023 are as follows:

	June 30, 2024			December 31, 2023
Accounts receivable	W	6,463,620			6,676,728
Unsettled domestic exchange receivables		1,267,195			1,938,307
Accrued income		1,289,376			1,200,380
Guarantee deposits		451,479			343,333
Prepaid expenses		20,461			19,000
Advance payments		8,607			8,555
Financial guarantee asset		44,673			48,182
Others		24,769			21,330
		9,570,180			10,255,815
Loss allowance for other assets		(73,520	)		(76,445	)
Present value discount		(4,166	)		(3,587	)
	W	9,492,494			10,175,783

The carrying amounts of financial assets included in other assets above amounted toW9,403,878 million andW10,136,642 million as of June 30, 2024 and December 31, 2023, respectively, and their fair value amounted toW9,402,755 million andW10,133,962 million as of June 30, 2024 and December 31, 2023, respectively.

S-71

Korea Development Bank

Notes to the Interim Separate Financial Statements

June 30, 2024 and 2023 (Unaudited), and December 31, 2023

(In millions of won)

16. Financial Liabilities Measured at FVTPL

(1) Financial liabilities designated at fair value through profit or loss as of June 30, 2024 and December 31, 2023 are as follows:

	June 30, 2024		December 31, 2023
Debentures	W	1,691,885		1,515,655
Deposits		499,623		404,406
	W	2,191,508		1,920,061

Changes in fair value of structured debentures and deposits which hedge accounting are applied, are recognized in profit or loss, but structured debentures with no hedge accounting applied to, are measured at amortized costs. Therefore, such structured debentures and deposits, not applied to hedge accounting, have been designated at FVTPL to eliminate mismatch in measurements of accounting profit and loss.

(2) The difference between the carrying amount and contractual cash flow amount of financial liabilities designated at fair value through profit or loss as of June 30, 2024 and December 31, 2023 are as follows:

	June 30, 2024			December 31, 2023
Carrying amount	W	2,191,508			1,920,061
Contractual cash flow amounts		2,686,192			2,380,244
Difference	W	(494,684	)		(460,183	)

17. Deposits

Deposits as of June 30, 2024 and December 31, 2023 are as follows:

	June 30, 2024				December 31, 2023
	Amortized cost		Fair value		Amortized cost		Fair value
Deposits in Korean won:
Demand deposits	W	84,371		84,371		155,186		155,186
Time and savings deposits		50,935,756		50,989,313		51,011,074		51,054,680
Certificates of deposit		545,514		545,144		74,363		74,080
		51,565,641		51,618,828		51,240,623		51,283,946
Deposits in foreign currencies:
Demand deposits		837,771		836,477		836,797		836,658
Time and savings deposits		6,645,882		6,618,243		6,049,678		6,045,288
Certificates of deposit		8,863,076		8,872,898		6,866,270		6,880,941
		16,346,729		16,327,618		13,752,745		13,762,887
Off-shore deposits in foreign currencies:
Demand deposits		884,180		884,180		904,364		904,364
	W	68,796,550		68,830,626		65,897,732		65,951,197

S-72

Korea Development Bank

Notes to the Interim Separate Financial Statements

June 30, 2024 and 2023 (Unaudited), and December 31, 2023

(In millions of won)

18. Borrowings

(1) Borrowings as of June 30, 2024 and December 31, 2023 are as follows:

	June 30, 2024
	Minimum interest rate (%)		Maximum interest rate (%)		Amortized cost			Fair value
Borrowings in Korean won		—		3.01	W	4,885,617			4,829,105
Borrowings in foreign currencies		—		7.30		19,329,137			19,236,551
Off-shore borrowings in foreign currencies		2.25		6.14		3,788,021			3,771,346
Others		0.16		6.02		4,518,785			4,509,528
						32,521,560			32,346,530
Deferred borrowing costs						(6,536	)
					W	32,515,024

	December 31, 2023
	Minimum interest rate (%)		Maximum interest rate (%)		Amortized cost			Fair value
Borrowings in Korean won		0.10		3.41	W	4,787,182			4,726,465
Borrowings in foreign currencies		0.14		7.38		16,655,307			16,584,979
Off-shore borrowings in foreign currencies		2.42		6.18		4,011,646			3,985,025
Others		—		6.02		2,298,142			2,293,650
						27,752,277			27,590,119
Deferred borrowing costs						(6,648	)
					W	27,745,629

S-73

Korea Development Bank

Notes to the Interim Separate Financial Statements

June 30, 2024 and 2023 (Unaudited), and December 31, 2023

(In millions of won)

18. Borrowings, Continued

(2) Borrowings in Korean won before adjusting for gains and losses on deferred borrowing costs as of June 30, 2024 and December 31, 2023 are as follows:

Lender	Classification	Annual interest rate (%)		June 30, 2024		December 31, 2023
Ministry of Economy and Finance	Borrowings from government fund (*)		2.82 ~ 2.83	W	72,736		77,629
Korea SMEs and Startups Agency	Borrowings from small and medium enterprise promotion fund		1.26 ~ 2.40		61,570		59,171
Ministry of Culture, Sports and Tourism	Borrowings from tourism promotion fund		1.08 ~ 2.33		3,144,112		3,080,914
Korea Energy Agency	Borrowings from fund for rational use of energy		0.50 ~ 1.75		273,575		256,472
Local governments	Borrowings from local small and medium enterprise promotion fund		0.50 ~ 3.01		18,940		22,620
The Bank of Korea	Borrowings from Bank of Korea		—		390,075		418,866
Others	Borrowings from petroleum enterprise fund and others		0.00 ~ 2.91		924,609		871,510
				W	4,885,617		4,787,182

(*) Borrowings from government fund are subordinated borrowings.

S-74

Korea Development Bank

Notes to the Interim Separate Financial Statements

June 30, 2024 and 2023 (Unaudited), and December 31, 2023

(In millions of won)

18. Borrowings, Continued

(3) Borrowings and off-shore borrowings in foreign currencies before adjusting for gains and losses on deferred borrowing costs as of June 30, 2024 and December 31, 2023 are as follows:

Lender	Classification	Annual interest rate (%)		June 30, 2024		December 31, 2023
Mizuho and others	Bank loans from foreign funds		4.01 ~ 6.31	W	2,788,187		2,076,759
Korea Exim Bank	Exchange equalization fund borrowings in foreign currencies		—		—		23,931
Central Bank of the Republic Uzbekistan and others	Off-shore short term borrowings		5.08 ~ 5.59		1,708,854		2,185,972
China Development Bank and others	Off-shore long term borrowings		2.25 ~ 6.14		2,079,167		1,825,674
Others	Short-term borrowings in foreign currencies		0.26 ~ 7.08		15,493,059		13,730,337
	Long term borrowings in foreign currencies		0.63 ~ 7.30		1,047,891		824,280
				W	23,117,158		20,666,953

S-75

Korea Development Bank

Notes to the Interim Separate Financial Statements

June 30, 2024 and 2023 (Unaudited), and December 31, 2023

(In millions of won)

19. Debentures

Details of debentures as of June 30, 2024 and December 31, 2023 are as follows:

	June 30, 2024
	Minimum interest rate (%)		Maximum interest rate (%)		Amortized cost			Fair value
Debentures in Korean won:
Debentures		0.98		7.05	W	112,392,649			112,370,248
Discount on debentures						(207,156	)
Valuation adjustment for fair value hedges						(245,594	)
						111,939,899
Debentures in foreign currencies:
Debentures		—		9.70		25,853,551			26,392,631
Discount on debentures						(43,611	)
Premium on debentures						23
Valuation adjustment for fair value hedges						(683,048	)
						25,126,915
Off-shore debentures:
Debentures		—		9.47		21,734,520			21,612,479
Discount on debentures						(64,793	)
Valuation adjustment for fair value hedges						21,698
						21,691,425
					W	158,758,239			160,375,358

S-76

Korea Development Bank

Notes to the Interim Separate Financial Statements

June 30, 2024 and 2023 (Unaudited), and December 31, 2023

(In millions of won)

19. Debentures, Continued

	December 31, 2023
	Minimum interest rate (%)		Maximum interest rate (%)		Amortized cost			Fair value
Debentures in Korean won:
Debentures		0.96		6.60	W	115,066,663			114,805,330
Discount on debentures						(147,257	)
Valuation adjustment for fair value hedges						(226,273	)
						114,693,133
Debentures in foreign currencies:
Debentures		0.40		10.87		23,278,766			23,733,405
Discount on debentures						(36,276	)
Premium on debentures						47
Valuation adjustment for fair value hedges						(561,938	)
						22,680,599
Off-shore debentures:
Debentures		—		11.15		19,628,771			19,359,808
Discount on debentures						(62,251	)
Valuation adjustment for fair value hedges						(6,385	)
						19,560,135
					W	156,933,867			157,898,543

20. Defined Benefit Assets

The Bank implements a defined benefit retirement pension plan based on employee compensation benefits and service periods. The plan assets are in trusts with Kookmin Bank, Samsung Life Insurance Co., Ltd., etc.

(1) Details of net defined benefit assets as of June 30, 2024 and December 31, 2023 are as follows:

	June 30, 2024			December 31, 2023
Present value of defined benefit obligation	W	395,292			389,839
Fair value of plan assets		(461,065	)		(458,759	)
Net defined benefit assets	W	(65,773	)		(68,920	)

S-77

Korea Development Bank

Notes to the Interim Separate Financial Statements

June 30, 2024 and 2023 (Unaudited), and December 31, 2023

(In millions of won)

20. Defined Benefit Assets, Continued

(2) Changes in net defined benefit assets for the six-month periods ended June 30, 2024 and 2023 are as follows:

	2024
	Present value of defined benefit obligation			Fair value of plan assets			Net defined benefit assets
Beginning balance	W	389,839			(458,759	)		(68,920	)
Current service costs		15,065			—			15,065
Interest expense (income)		8,479			(10,293	)		(1,814	)
Payments from the plan		(18,091	)		7,987			(10,104	)
Ending balance	W	395,292			(461,065	)		(65,773	)

	2023
	Present value of defined benefit obligation			Fair value of plan assets			Net defined benefit assets
Beginning balance	W	354,703			(442,473	)		(87,770	)
Current service costs		14,181			—			14,181
Interest expense (income)		9,110			(11,575	)		(2,465	)
Payments from the plan		(19,988	)		19,706			(282	)
Ending balance	W	358,006			(434,342	)		(76,336	)

(3) Fair value of plan assets for each type as of June 30, 2024 and December 31, 2023 are as follows:

	June 30, 2024				December 31, 2023
	Quoted market prices		Unquoted market prices		Quoted market prices		Unquoted market Prices
Due from banks	W	—		461,065		—		458,759

(4) Defined benefit costs recognized in profit or loss for the three-month and six-month periods ended June 30, 2024 and 2023 are as follows:

	June 30, 2024						June 30, 2023
	Three-month period ended			Six-month period ended			Three-month period ended			Six-month period ended
Current service costs	W	7,495			15,065			7,087			14,181
Interest expense, net		(908	)		(1,814	)		(1,233	)		(2,465	)
	W	6,587			13,251			5,854			11,716

S-78

Korea Development Bank

Notes to the Interim Separate Financial Statements

June 30, 2024 and 2023 (Unaudited), and December 31, 2023

(In millions of won)

20. Defined Benefit Assets, Continued

(5) The principal actuarial assumptions used as of June 30, 2024 and December 31, 2023 are as follows:

	June 30, 2024		December 31, 2023
Discount rate (%)		4.58 ~ 4.60		4.58 ~ 4.60
Future salary increasing rate (%)		5.50		5.50

(6) The present value sensitivity of defined benefit obligation as changes in principal actuarial assumptions as of December 31, 2023 is as follows:

	Sensitivity
	1% increase in assumption		1% decrease in assumption
Discount rate		8.36% decrease		9.70% increase
Future salary increasing rate		9.52% increase		8.37% decrease

(7) The weighted average duration of defined benefit obligation is 9.64 years as of December 31, 2023.

21. Provisions

(1) Details of provisions as of June 30, 2024 and December 31, 2023 are as follows:

	June 30, 2024		December 31, 2023
Provision for payment guarantees	W	427,683		592,098
Provision for unused commitments		343,169		398,641
Provision for financial guarantee		8,452		50,763
Provision for possible losses from lawsuits		168		168
Provision for restoration		13,991		13,722
Other provision		3,391		3,391
	W	796,854		1,058,783

(2) Changes in provision for payment guarantees for the six-month periods ended June 30, 2024 and 2023 are as follows:

	2024
				Lifetime expected credit losses
	12-month expected credit loss			Non credit- impaired			Credit- impaired			Total
Beginning balance	W	230,436			317,138			44,524			592,098
Transfer to 12-month expected credit loss		36,073			(36,065	)		(8	)		—
Transfer to lifetime expected credit losses:
Transfer to non credit-impaired exposures		(62,334	)		63,334			(1,000	)		—
Transfer to credit-impaired exposures		(34,888	)		(1,306	)		36,194			—
Impairment loss (gain)		59,656			(186,207	)		(75,755	)		(202,306	)
Foreign currency translation		36,946			470			475			37,891
Ending balance	W	265,889			157,364			4,430			427,683

S-79

Korea Development Bank

Notes to the Interim Separate Financial Statements

June 30, 2024 and 2023 (Unaudited), and December 31, 2023

(In millions of won)

21. Provisions, Continued

	2023
				Lifetime expected credit losses
	12-month expected credit loss			Non credit- impaired			Credit- impaired			Total
Beginning balance	W	64,150			537,255			352,020			953,425
Transfer to 12-month expected credit loss		193,158			(133,509	)		(59,649	)		—
Transfer to lifetime expected credit losses:
Transfer to non credit-impaired exposures		(12,652	)		99,180			(86,528	)		—
Transfer to credit-impaired exposures		—			(1,883	)		1,883			—
Impairment gain		(3,831	)		(183,453	)		(201,872	)		(389,156	)
Foreign currency translation		12,180			16,422			168			28,770
Ending balance	W	253,005			334,012			6,022			593,039

(3) Changes in provision for unused commitments for the six-month periods ended June 30, 2024 and 2023 are as follows:

	2024
				Lifetime expected credit losses
	12-month expected credit loss			Non credit- impaired			Credit- impaired			Total
Beginning balance	W	114,277			272,952			11,412			398,641
Transfer to 12-month expected credit loss		17,760			(17,755	)		(5	)		—
Transfer to lifetime expected credit losses:
Transfer to non credit-impaired		(109,125	)		109,222			(97	)		—
Transfer to credit-impaired		(75,467	)		(121	)		75,588			—
Impairment loss (gain)		184,340			(237,914	)		(8,935	)		(62,509	)
Foreign currency translation		4,947			2,026			64			7,037
Ending balance	W	136,732			128,410			78,027			343,169

	2023
				Lifetime expected credit losses
	12-month expected credit loss			Non credit- impaired			Credit- impaired			Total
Beginning balance	W	121,771			300,309			9,310			431,390
Transfer to 12-month expected credit loss		22,814			(16,639	)		(6,175	)		—
Transfer to lifetime expected credit losses:
Transfer to non credit-impaired		(12,443	)		55,758			(43,315	)		—
Transfer to credit-impaired		—			(4,220	)		4,220			—
Impairment loss (gain)		(30,899	)		(50,417	)		42,206			(39,110	)
Foreign currency translation		2,283			68			1,916			4,267
Ending balance	W	103,526			284,859			8,162			396,547

S-80

Korea Development Bank

Notes to the Interim Separate Financial Statements

June 30, 2024 and 2023 (Unaudited), and December 31, 2023

(In millions of won)

21. Provisions, Continued

(4) Changes in provision for financial guarantee for the six-month periods ended June 30, 2024 and 2023 are as follows:

	2024
				Lifetime expected credit losses
	12-month expected credit loss			Non credit- impaired			Credit- impaired			Total
Beginning balance	W	3,122			42,240			5,401			50,763
Transfer to 12-month expected credit loss		—			—			—			—
Transfer to lifetime expected credit losses:
Transfer to non credit-impaired		(20	)		20			—			—
Transfer to credit-impaired		—			(56	)		56			—
Impairment loss (gain)		425			(39,238	)		(3,498	)		(42,311	)
Ending balance	W	3,527			2,966			1,959			8,452

	2023
				Lifetime expected credit losses
	12-month expected credit loss			Non credit- impaired			Credit- impaired			Total
Beginning balance	W	661			36,682			5,398			42,741
Transfer to 12-month expected credit loss		802			(553	)		(249	)		—
Transfer to lifetime expected credit losses:
Transfer to non credit-impaired		(56	)		121			(65	)		—
Transfer to credit-impaired		—			(8,418	)		8,418			—
Impairment loss (gain)		1,686			15,665			(1,622	)		15,729
Ending balance	W	3,093			43,497			11,880			58,470

S-81

Korea Development Bank

Notes to the Interim Separate Financial Statements

June 30, 2024 and 2023 (Unaudited), and December 31, 2023

(In millions of won)

21. Provisions, Continued

(5) Changes of lawsuit provision, provision for restoration and other provision for the six-month periods ended June 30, 2024 and 2023 are as follows:

	2024
	Lawsuit provision		Provision for restoration			Other provision
Beginning balance	W	168		13,722			3,391
Decrease of provision		—		(95	)		—
Provision used and others		—		364			—
Ending balance	W	168		13,991			3,391

	2023
	Lawsuit provision			Provision for restoration			Other provision
Beginning balance	W	239			14,206			6,029
Decrease of provision		(4	)		(544	)		—
Provision used and others		(67	)		188			(2,638	)
Ending balance	W	168			13,850			3,391

(6) Provision for payment guarantees and financial guarantee

Confirmed acceptances and guarantees, unconfirmed acceptances and guarantees and bills endorsed are not recognized on the statement of financial position, but are disclosed as off-statement of financial position items in the notes to the financial statements. The Bank provides a provision for such off-statement of financial position items, applying a Credit Conversion Factor (“CCF”) and provision rates under the Bank’s expected credit loss model, and records the provision as a reserve for expected credit losses on acceptances and guarantees.

In the case of financial guarantee contracts, when the amount calculated using the same method as above is greater than the initial amount less amortization of fees recognized, the difference is recorded as provision for financial guarantee.

(7) Provision for unused commitments

The Bank records a provision for a certain portion of unused credit lines which is calculated using a CCF as provision for unused commitments applying provision rates under the Bank’s expected credit loss model.

(8) Provision for possible losses from lawsuits

As of June 30, 2024, the Bank is involved in 7 lawsuits as a plaintiff and 19 lawsuits as a defendant. The aggregate amounts of claims as a plaintiff and a defendant amounted toW139,020 million andW182,254 million, respectively. The Bank provided a provision against contingent loss from pending lawsuits as of June 30, 2024 and additional losses may be incurred depending on the result of pending lawsuits.

S-82

Korea Development Bank

Notes to the Interim Separate Financial Statements

June 30, 2024 and 2023 (Unaudited), and December 31, 2023

(In millions of won)

21. Provisions, Continued

Major lawsuits in progress as of June 30, 2024 and December 31, 2023 are as follows:

	June 30, 2024
	Contents	Amounts		Status of lawsuit
Plaintiff:
Korea Trade Insurance Corporation and one other	Claim for guarantee insurance	W	136,538	1st and 2nd trial ruled against the Bank; 3rd trial in progress
CIEF Co., Ltd. and 4 others	Claim for payment of stock transactions		1,500	1st trial in progress
Defendant:
Shinhan Bank and Woori Bank	Claim for damages		76,838	1st trial ruled in favor of the Bank; 2nd trial in progress
Dongbu Corporation	Claim for nullity of table of rehabilitation creditor		33,997	1st trial ruled in favor of the Bank; 2nd trial ruled against the Bank; 3rd trial reversed and remanded; 2nd trial in progress
Dongbu Corporation	Claim for objection of request (participation to support)		19,658	1st trial in progress
Woori Bank	Claim for profit and loss settlement		14,500	1st and 2nd trial ruled against the Bank; 3rd trial in progress
Korea Trade Insurance Corporation	Claim for recovery		11,870	1st trial in progress
One individual	Claim for cancellation of pledge		8,610	1st trial in progress

S-83

Korea Development Bank

Notes to the Interim Separate Financial Statements

June 30, 2024 and 2023 (Unaudited), and December 31, 2023

(In millions of won)

21. Provisions, Continued

	December 31, 2023
	Contents	Amounts		Status of lawsuit
Plaintiff:
Korea Trade Insurance Corporation and one other	Claim for guarantee insurance	W	136,538	1st, 2nd trial ruled against the Bank; 3rd trial in progress
Defendant:
Shinhan Bank and Woori Bank	Claim for damages		76,838	1st trial ruled in favor of the Bank
131 individuals including Mr. Kang	Claim for wage		35,459	1st , 2nd trial ruled in favor of the Bank
Dongbu Corporation	Claim for nullity of table of rehabilitation creditor		33,997	1st trial ruled in favor of the Bank; 2nd trial ruled against the Bank; 3rd trial in progress
Dongbu Corporation	Claim for objection of request (participation to support)		19,658	1st trial in progress
Woori Bank	Claim for profit and loss settlement		14,500	1st, 2nd trial ruled against the Bank; 3rd trial in progress
Korea Trade Insurance Corporation	Claim for recovery		11,870	1st trial in progress
One individual	Claim for cancellation of pledge		8,610	1st trial in progress

(9) Other provision

The Bank recognised other provision as a reserve for other miscellaneous purpose.

S-84

Korea Development Bank

Notes to the Interim Separate Financial Statements

June 30, 2024 and 2023 (Unaudited), and December 31, 2023

(In millions of won)

22. Other Liabilities

(1) Other liabilities as of June 30, 2024 and December 31, 2023 are as follows:

	June 30, 2024			December 31, 2023
Accounts payable	W	6,404,978			6,627,972
Lease liabilities		92,073			97,231
Accrued expense		2,616,893			2,515,484
Advance receipts		—			32
Unearned income		85,712			91,617
Deposits withholding tax		43,421			52,038
Guarantee money received		720,576			718,975
Foreign exchanges payable		19,382			19,088
Domestic exchanges payable		585,265			533,833
Borrowing from trust accounts		1,762,184			1,037,094
Financial guarantee liability		46,395			50,388
Others		128,402			381,831
		12,505,281			12,125,583
Present value discount		(18,790	)		(25,158	)
	W	12,486,491			12,100,425

The carrying amount of financial liabilities included in other liabilities above amounted toW12,209,094 million andW11,823,274 million as of June 30, 2024 and December 31, 2023, respectively, and their fair value amounted toW12,178,404 million andW11,800,828 million as of June 30, 2024 and December 31, 2023, respectively.

(2) Details of lease liabilities as of June 30, 2024 and December 31, 2023 are as follows:

	June 30, 2024
	Face value		Discount			Carrying amounts
Real estate	W	86,533		(18,281	)		68,252
Vehicles		5,487		1,864			7,351
Others		53		(11	)		42
	W	92,073		(16,428	)		75,645

	December 31, 2023
	Face value		Discount			Carrying amounts
Real estate	W	90,518		(22,984	)		67,534
Vehicles		6,657		462			7,119
Others		56		(2	)		54
	W	97,231		(22,524	)		74,707

S-85

Korea Development Bank

Notes to the Interim Separate Financial Statements

June 30, 2024 and 2023 (Unaudited), and December 31, 2023

(In millions of won)

22. Other Liabilities, Continued

(3) The amount related to lease recognized in the separate statement of comprehensive income for the three-month and six-month periods ended June 30, 2024 and 2023 is as follows:

	June 30, 2024				June 30, 2023
	Three-month period ended		Six-month period ended		Three-month period ended		Six-month period ended
Depreciation of right-of-use assets
Real estate	W	8,391		16,544		8,498		16,677
Vehicles		812		1,599		649		1,243
Others		12		22		10		20
		9,215		18,165		9,157		17,940
Interest expenses on the lease liabilities		479		1,079		719		1,310
Expense relating to leases of low-value assets		128		7,613		2,529		4,395
	W	9,822		26,857		12,405		23,645

(4) Cash flows used in lease liabilities for the six-month periods ended June 30, 2024 and 2023 are as follows:

	2024		2023
Decrease in lease liabilities	W	14,894		9,629
Lease payments relating to leases of low-value assets		7,613		4,395
	W	22,507		14,024

(5) Maturity analysis of undiscounted lease payments relating to lease liabilities as of June 30, 2024 and December 31, 2023 are as follows:

	June 30, 2024
	Within 3 months		3 months ~ 1 year		1 year ~ 5 years		Over 5 years		Total
Lease payments	W	10,490		26,718		41,157		13,708		92,073
	December 31, 2023
	Within 3 months		3 months ~ 1 year		1 year ~ 5 years		Over 5 years		Total
Lease payments	W	10,111		24,687		49,975		12,458		97,231

23. Equity

(1) Issued capital

The Bank is authorized to issue up to 6,000 million shares of common stock and has 5,226,311,768 shares issued and 4,785,311,768 shares issued as of June 30, 2024 and December 31, 2023, respectively, and outstanding with a total par value (W5,000 of par value per share) ofW26,131,559 million andW23,926,559 million as of June 30, 2024 and December 31, 2023, respectively.

S-86

Korea Development Bank

Notes to the Interim Separate Financial Statements

June 30, 2024 and 2023 (Unaudited), and December 31, 2023

(In millions of won)

23. Equity, Continued

(2) Capital surplus

Capital surplus as of June 30, 2024 and December 31, 2023 are as follows:

	June 30, 2024		December 31, 2023
Paid-in capital in excess of par value	W	23,030		33,847
Surplus from capital reduction (*1)		44,373		44,373
Other capital surplus (*2)		2,390,495		2,390,495
	W	2,457,898		2,468,715

(*1) The Bank reducedW5,178,600 million of its issued capital in 1998 and 2000 to offset its accumulated deficit amounting toW5,134,227 million. As the result of the capital reduction,W44,373 million of surplus exceeding accumulated deficit was recorded in capital surplus in equity.

(*2) The difference in the amount of shares issued and the carrying value of net asset acquired occurring from the merger of the Bank with KDB Financial Group Inc. and Korea Finance Corporation are recognized as other capital surplus.

(3) Accumulated other comprehensive income

(i) Accumulated other comprehensive income as of June 30, 2024 and December 31, 2023 are as follows:

	June 30, 2024			December 31, 2023
Net gain on securities measured at FVOCI
Valuation gain on securities measured at FVOCI (before tax)	W	2,185,339			2,528,823
Loss allowance for securities measured at FVOCI (before tax)		95,035			90,422
Income tax effect		(602,019	)		(691,480	)
		1,678,355			1,927,765
Exchange differences on translation of foreign operations:
Exchange differences on translation of foreign operations (before tax)		287,174			152,225
Income tax effect		—			—
		287,174			152,225
Valuation gain on cash flow hedge:
Valuation gain on cash flow hedge (before tax)		2,527			4,034
Income tax effect		(667	)		(1,065	)
		1,860			2,969
Net loss on hedges of net investments in foreign operations:
Net loss on hedges of net investments in foreign operations (before tax)		(209,406	)		(117,276	)
Income tax effect		55,283			30,961
		(154,123	)		(86,315	)
Remeasurements of defined benefit liabilities:
Remeasurements of defined benefit liabilities (before tax)		120,558			120,558
Income tax effect		(31,826	)		(31,826	)
		88,732			88,732
Fair value changes on financial liabilities designated at fair value due to credit risk:
Valuation gain on financial liabilities designated at fair value due to credit risk (before tax)		90,948			99,153
Income tax effect		(24,012	)		(26,178	)
		66,936			72,975
	W	1,968,934			2,158,351

S-87

Korea Development Bank

Notes to the Interim Separate Financial Statements

June 30, 2024 and 2023 (Unaudited), and December 31, 2023

(In millions of won)

23. Equity, Continued

(ii) Changes in accumulated other comprehensive income for the six-month periods ended June 30, 2024 and 2023 are as follows:

	2024
	January 1, 2024			Increase (Decrease)			Tax Effect			June 30, 2024
Gain (loss) on securities measured at FVOCI	W	1,927,765			(338,871	)		89,461			1,678,355
Exchange differences on translation of foreign operations		152,225			134,949			—			287,174
Valuation gain (loss) on cash flow hedge		2,969			(1,507	)		398			1,860
Valuation gain (loss) on hedges of net investments in foreign operations		(86,315	)		(92,131	)		24,323			(154,123	)
Remeasurements of defined benefit liabilities		88,732			—			—			88,732
Valuation gain (loss) on financial liabilities designated at fair value due to credit risk		72,975			(8,205	)		2,166			66,936
	W	2,158,351			(305,765	)		116,348			1,968,934
	2023
	January 1, 2023			Increase (Decrease)			Tax Effect			June 30, 2023
Gain (loss) on securities measured at FVOCI	W	2,557,521			60,312			(12,443	)		2,605,390
Exchange differences on translation of foreign operations		132,126			52,561			—			184,687
Valuation gain (loss) on cash flow hedge		5,322			(727	)		199			4,794
Valuation gain (loss) on hedges of net investments in foreign operations		(71,202	)		(42,004	)		10,992			(102,214	)
Remeasurements of defined benefit liabilities		104,870			—			143			105,013
Valuation gain (loss) on financial liabilities designated at fair value due to credit risk		90,696			(14,896	)		4,056			79,856
	W	2,819,333			55,246			2,947			2,877,526

(4) Retained earnings

In accordance with the Korea Development Bank Act, the Bank is required to appropriate at least 40% of net income as a legal reserve. This reserve can be transferred to paid-in capital or offset an accumulated deficit.

In accordance with the Korea Development Bank Act, the Bank offsets an accumulated deficit with reserves. If the reserve is insufficient to offset the accumulated deficit, the Korean government is responsible for the deficit.

(i) Retained earnings as of June 30, 2024 and December 31, 2023 are as follows:

	June 30, 2024		December 31, 2023
Legal reserve	W	3,725,456		2,721,885
Voluntary reserve
Regulatory reserve for loan losses		77,581		211,996
Unappropriated retained earnings		8,157,942		7,943,027
	W	11,960,979		10,876,908

S-88

Korea Development Bank

Notes to the Interim Separate Financial Statements

June 30, 2024 and 2023 (Unaudited), and December 31, 2023

(In millions of won)

23. Equity, Continued

(ii) Changes in legal reserve for the six-month periods ended June 30, 2024 and 2023 are as follows:

	2024		2023
Beginning balance	W	2,721,885		2,535,892
Transfer from retained earnings		1,003,571		185,993
Ending balance	W	3,725,456		2,721,885

(iii) Changes in unappropriated retained earnings for the six-month periods ended June 30, 2024 and 2023 are as follows:

	2024			2023
Beginning balance	W	7,943,027			4,439,026
Contribution to legal reserve		(1,003,571	)		(185,993	)
Transfer from regulatory reserve for credit losses		134,415			35,256
Dividends		(878,125	)		(164,743	)
Reclassification of gain or loss on equity securities measured at FVOCI		288,380			18,513
Profit for the period		1,673,816			2,814,593
Ending balance	W	8,157,942			6,956,652

(5) Regulatory reserve for credit losses

The Bank is required to provide a regulatory reserve for credit losses in accordance with Regulations on Supervision of Banking Business 29(1) and (2). The details of regulatory reserve for credit losses are as follows:

(i) Regulatory reserve for credit losses as of June 30, 2024 and December 31, 2023 are as follows:

	June 30, 2024		December 31, 2023
Beginning balance	W	77,581		211,996
Provision for (reversal of) regulatory reserve for credit losses		93,978		(134,415	)
Ending balance	W	171,559		77,581

(ii) Required reversal of regulatory reserve for credit losses and profit after adjusting regulatory reserve for loan losses for the three-month and six-month periods ended June 30, 2024 and 2023 are as follows:

	June 30, 2024					June 30, 2023
	Three-month period ended		Six-month period ended			Three-month period ended		Six-month period ended
Profit for the period	W	1,080,682		1,673,816			1,723,074		2,814,593
Obligated amount of reversal of (provision for) regulatory reserve for credit losses		201,899		(93,978	)		113,426		(55,548	)
Profit after adjusting regulatory reserve for credit losses	W	1,282,581		1,579,838			1,836,500		2,759,045
Earnings per share after adjusting regulatory reserve for credit losses (in won)	W	246		316			389		590

S-89

Korea Development Bank

Notes to the Interim Separate Financial Statements

June 30, 2024 and 2023 (Unaudited), and December 31, 2023

(In millions of won)

24. Net Interest Income

Net interest income for the three-month and six-month periods ended June 30, 2024 and 2023 are as follows:

	June 30, 2024						June 30, 2023
	Three-month period ended			Six-month period ended			Three-month period ended			Six-month period ended
Interest income:
Due from banks	W	98,350			182,415			97,008			216,699
Securities measured at FVTPL		21,786			41,638			11,324			20,190
Securities measured at FVOCI		231,450			444,416			201,611			387,302
Securities measured at amortized cost		84,954			171,474			56,006			103,977
Loans measured at FVTPL		4,253			6,536			3,679			6,880
Loans measured at amortized cost		2,645,743			5,278,764			2,441,939			4,838,358
		3,086,536			6,125,243			2,811,567			5,573,406
Interest expense:
Financial liabilities measured at FVTPL		(27,980	)		(52,732	)		(20,603	)		(39,739	)
Deposits		(601,923	)		(1,237,949	)		(573,558	)		(1,156,016	)
Borrowings		(437,661	)		(856,672	)		(338,040	)		(644,822	)
Debentures		(1,739,885	)		(3,415,136	)		(1,456,071	)		(2,858,613	)
		(2,807,449)			(5,562,489	)		(2,388,272	)		(4,699,190	)
	W	279,087			562,754			423,295			874,216

25. Net Fees and Commission Income

Net fees and commission income for the three-month and six-month periods ended June 30, 2024 and 2023 are as follows:

	June 30, 2024						June 30, 2023
	Three-month period ended			Six-month period ended			Three-month period ended			Six-month period ended
Fees and commission income:
Loan commissions	W	43,426			81,765			42,175			78,100
Underwriting and investment consulting commissions		34,804			61,742			23,254			40,140
Brokerage and agency commissions		2,112			3,426			1,786			3,475
Trust and retirement pension plan commissions		9,774			20,305			9,553			19,444
Fees on asset management		407			677			398			1,112
Other fees		46,660			88,178			36,238			62,055
		137,183			256,093			113,404			204,326
Fees and commission expenses:
Brokerage and agency fees		(3,014	)		(5,803	)		(2,225	)		(5,539	)
Other fees		(10,068	)		(16,732	)		(5,479	)		(11,554	)
		(13,082	)		(22,535	)		(7,704	)		(17,093	)
	W	124,101			233,558			105,700			187,233

S-90

Korea Development Bank

Notes to the Interim Separate Financial Statements

June 30, 2024 and 2023 (Unaudited), and December 31, 2023

(In millions of won)

26. Dividend Income

Dividend income for the three-month and six-month periods ended June 30, 2024 and 2023 are as follows:

	June 30, 2024				June 30, 2023
	Three-month period ended		Six-month period ended		Three-month period ended		Six-month period ended
Securities measured at FVTPL	W	46,657		90,874		53,646		87,682
Securities measured at FVOCI		—		124,583		85		121,754
Investments in subsidiaries and associates		136,008		438,996		52,011		252,406
	W	182,665		654,453		105,742		461,842

27. Net Gain (Loss) on Securities Measured at FVTPL

Net gain (loss) related to securities measured at FVTPL for the three-month and six-month periods ended June 30, 2024 and 2023 are as follows:

	June 30, 2024						June 30, 2023
	Three-month period ended			Six-month period ended			Three-month period ended			Six-month period ended
Gains on securities measured at FVTPL:
Gains on sale	W	32,629			69,305			25,090			56,610
Gains on valuation		154,426			412,867			77,244			290,771
		187,055			482,172			102,334			347,381
Losses on securities measured at FVTPL:
Losses on sale		(7,413	)		(34,919	)		(41,281	)		(47,587	)
Losses on valuation		(57,752	)		(200,330	)		(63,991	)		(137,316	)
Purchase related expense		(2	)		(4	)		(4	)		(16	)
		(65,167)			(235,253	)		(105,276	)		(184,919	)
	W	121,888			246,919			(2,942	)		162,462

S-91

Korea Development Bank

Notes to the Interim Separate Financial Statements

June 30, 2024 and 2023 (Unaudited), and December 31, 2023

(In millions of won)

28. Net Gain (Loss) on Financial Liabilities Measured at FVTPL

Net gain (loss) related to financial liabilities designated at fair value through profit or loss (“FVTPL”) for the three-month and six-month periods ended June 30, 2024 and 2023 are as follows:

	June 30, 2024						June 30, 2023
	Three-month period ended			Six-month period ended			Three-month period ended		Six-month period ended
Gains on financial liabilities measured at FVTPL:
Gains on valuation	W	(25,771	)		51,369			7,988		9,995
Losses on financial liabilities measured at FVTPL:
Losses on redemption		—			(704	)		—		(698	)
Losses on valuation		(8,245	)		(13,130	)		78,532		(15,148	)
		(8,245	)		(13,834	)		78,532		(15,846	)
	W	(34,016	)		37,535			86,520		(5,851	)

29. Net Gain (Loss) on Securities Measured at FVOCI

Net gain (loss) related to securities measured at FVOCI for the three-month and six-month periods ended June 30, 2024 and 2023 are as follows:

	June 30, 2024						June 30, 2023
	Three-month period ended			Six-month period ended			Three-month period ended			Six-month period ended
Gains on securities measured at FVOCI:
Gains on sale	W	7,889			9,672			1,523			2,834
Reversal of impairment losses		1,094			1,159			(925	)		—
		8,983			10,831			598			2,834
Losses on securities measured at FVOCI:
Losses on sale		(400	)		(416	)		(185	)		(185	)
Impairment losses		(3,560	)		(4,362	)		(4,328	)		(4,603	)
		(3,960	)		(4,778	)		(4,513	)		(4,788	)
	W	5,023			6,053			(3,915	)		(1,954	)

S-92

Korea Development Bank

Notes to the Interim Separate Financial Statements

June 30, 2024 and 2023 (Unaudited), and December 31, 2023

(In millions of won)

30. Net Gain (Loss) on Derivatives

Net gain (loss) on derivatives for the three-month and six-month periods ended June 30, 2024 and 2023 are as follows:

	June 30, 2024						June 30, 2023
	Three-month period ended			Six-month period ended			Three-month period ended			Six-month period ended
Net gain on trading purpose derivatives:
Gains on trading purpose derivatives:
Interest	W	893,500			2,401,754			753,685			2,266,670
Currency		4,405,232			9,970,867			2,926,521			7,904,937
Stock		192			887			230			1,756
Gains on adjustment of derivatives		(670	)		4,657			63,629			66,875
		5,298,254			12,378,165			3,744,065			10,240,238
Losses on trading purpose derivatives:
Interest		(862,965	)		(2,273,984	)		(611,081	)		(2,084,634	)
Currency		(4,373,560	)		(9,804,301	)		(2,979,020	)		(7,915,216	)
Stock		(230	)		(755	)		(257	)		(1,801	)
Losses on adjustment of derivatives		74			(6,134	)		26,581			(2,047	)
		(5,236,681	)		(12,085,174	)		(3,563,777	)		(10,003,698	)
		61,573			292,991			180,288			236,540
Net gain (loss) on hedging purpose derivatives:
Gains on hedging purpose derivatives:
Interest		46,067			61,861			(242,615	)		71,522
Currency		31,793			122,774			117,510			305,418
Gains on adjustment of derivatives		84			182			28			44
		77,944			184,817			(125,077	)		376,984
Losses on hedging purpose derivatives:
Interest		74,925			(152,172	)		(2,957	)		(7,861	)
Currency		(182,831	)		(594,375	)		(189,865	)		(240,328	)
Losses on adjustment of derivatives		(104	)		(212	)		(92	)		(253	)
		(108,010	)		(746,759	)		(192,914	)		(248,442	)
		(30,066	)		(561,942	)		(317,991	)		128,542
Net gain (loss) on fair value hedged items:
Gains on fair value hedged items:
Gains on valuation		28,686			430,663			125,532			184,410
Gains on redemption		20,001			149,322			99,227			132,827
		48,687			579,985			224,759			317,237
Losses on fair value hedged items:
Losses on valuation		(262,257	)		(511,603	)		175,147			(615,955	)
Losses on redemption		(59,720	)		(213,866	)		(142,256	)		(196,294	)
		(321,977	)		(725,469	)		32,891			(812,249	)
		(273,290	)		(145,484	)		257,650			(495,012	)
	W	(241,783	)		(414,435	)		119,947			(129,930	)

S-93

Korea Development Bank

Notes to the Interim Separate Financial Statements

June 30, 2024 and 2023 (Unaudited), and December 31, 2023

(In millions of won)

30. Net Gain (Loss) on Derivatives, Continued

Related with cash flow hedge, the Bank recognizedW40 million of gain andW27 million of loss in the statement of comprehensive income as the ineffective portion for the period ended June 30, 2024 and 2023, respectively.

31. Net Gain on Foreign Currency Transaction

Net gain on foreign currency transaction for the three-month and six-month periods ended June 30, 2024 and 2023 are as follows:

	June 30, 2024						June 30, 2023
	Three-month period ended			Six-month period ended			Three-month period ended			Six-month period ended
Net gain (loss) on foreign exchange transactions:
Gains on foreign exchange transactions	W	181,256			363,812			253,776			507,172
Losses on foreign exchange transactions		(172,471	)		(343,975	)		(253,981	)		(513,153	)
		8,785			19,837			(205	)		(5,981	)
Net gain on foreign exchange translations:
Gains on foreign exchange translations		6,394,902			14,378,855			2,433,360			8,374,573
Losses on foreign exchange translations		(6,103,049	)		(13,827,338	)		(2,428,691	)		(8,011,700	)
		291,853			551,517			4,669			362,873
	W	300,638			571,354			4,464			356,892

S-94

Korea Development Bank

Notes to the Interim Separate Financial Statements

June 30, 2024 and 2023 (Unaudited), and December 31, 2023

(In millions of won)

32. Other Operating Expense, net

Other operating income and expense for the three-month and six-month periods ended June 30, 2024 and 2023 are as follows:

	June 30, 2024						June 30, 2023
	Three-month period ended			Six-month period ended			Three-month period ended			Six-month period ended
Other operating income:
Gains on sale of loans	W	26,851			35,268			28,597			28,597
Gains on disposal of loans measured at FVTPL		3,282			3,700			4,217			5,707
Gains on valuation of loans measured at FVTPL		388			2,416			(5,908	)		3,750
Reversal of provisions		5			164			158			630
Others		12,017			22,937			9,839			23,102
		42,543			64,485			36,903			61,786
Other operating expenses:
Losses on sale of loans		(61,699	)		(62,545	)		(17,256	)		(17,256	)
Losses on disposal of loans measured at FVTPL		(1,417	)		(1,417	)		(3,828	)		(4,082	)
Losses on valuation of loans measured at FVTPL		5,834			(18,087	)		(10,544	)		(15,375	)
Losses on disposal of investments in subsidiaries and associates		—			(7,203	)		—			—
Increase of provisions		(34	)		(69	)		(36	)		(82	)
Insurance expenses		(25,085	)		(50,085	)		(25,435	)		(51,202	)
Credit guarantee fund salary		(54,804	)		(107,828	)		(53,704	)		(107,765	)
Educational taxes		(14,293	)		(30,683	)		(13,538	)		(27,460	)
Foreign security contributions		(1,568	)		(4,981	)		(8,476	)		(10,792	)
Others		(5,096	)		(10,121	)		(7,926	)		(13,887	)
		(158,162	)		(293,019	)		(140,743	)		(247,901	)
	W	(115,619	)		(228,534	)		(103,840	)		(186,115	)

33. Reversal of Credit Losses

Reversal of credit losses for the three-month and six-month periods ended June 30, 2024 and 2023 are as follows:

	June 30, 2024						June 30, 2023
	Three-month period ended			Six-month period ended			Three-month period ended			Six-month period ended
Reversal of loss allowance for loan	W	(75,908	)		(69,085	)		(134,733	)		(636,714	)
Provision for (reversal of) loss allowance for other assets		(660	)		(2,598	)		1,734			2,391
Reversal of payment guarantees		(10,172	)		(202,306	)		(685,927	)		(389,156	)
Reversal of unused commitments		(17,313	)		(62,509	)		(87,288	)		(39,110	)
Provision for (reversal of) financial guarantee		(30,506	)		(42,311	)		15,875			15,729
	W	(134,559	)		(378,809	)		(890,339	)		(1,046,860	)

S-95

Korea Development Bank

Notes to the Interim Separate Financial Statements

June 30, 2024 and 2023 (Unaudited), and December 31, 2023

(In millions of won)

34. General and Administrative Expenses

General and administrative expenses for the three-month and six-month periods ended June 30, 2024 and 2023 are as follows:

	June 30, 2024				June 30, 2023
	Three-month period ended		Six-month period ended		Three-month period ended		Six-month period ended
Payroll costs:
Short-term employee benefits	W	85,090		180,706		83,855		178,051
Defined benefit costs		6,587		13,251		5,854		11,716
Defined contribution costs		482		1,042		434		2,155
		92,159		194,999		90,143		191,922
Depreciation and amortization:
Depreciation of property and equipment		17,604		34,967		18,812		35,861
Amortization of intangible assets		13,541		27,025		13,563		27,230
		31,145		61,992		32,375		63,091
Other:
Employee welfare benefits		9,209		19,125		9,286		16,714
Rent expenses		2,305		4,650		1,007		2,663
Taxes and dues		6,377		14,403		5,914		13,400
Advertising expenses		3,816		5,292		2,347		3,676
Electronic data processing expenses		22,466		44,464		24,302		46,414
Fees and charges		2,271		22,733		2,987		21,351
Others		10,522		20,195		10,663		19,388
		56,966		130,862		56,506		123,606
	W	180,270		387,853		179,024		378,619

S-96

Korea Development Bank

Notes to the Interim Separate Financial Statements

June 30, 2024 and 2023 (Unaudited), and December 31, 2023

(In millions of won)

35. Other Non-Operating Income and Expense

Other non-operating income and expense for the three-month and six-month periods ended June 30, 2024 and 2023 are as follows:

	June 30, 2024						June 30, 2023
	Three-month period ended			Six-month period ended			Three-month period ended			Six-month period ended
Other non-operating income:
Gains on disposal of property and equipment	W	8			127			40			385
Gains on disposal of intangible assets		—			—			2			2
Rental income on investment property		195			406			212			433
Others		73			1,339			142			1,588
		276			1,872			396			2,408
Other non-operating expenses:
Losses on disposal of property and equipment		(154	)		(881	)		(608	)		(1,689	)
Depreciation of investment property		(439	)		(877	)		(932	)		(1,381	)
Donations		(441	)		(566	)		(3,424	)		(3,562	)
Others		(121	)		(2,209	)		(56	)		(2,317	)
		(1,155	)		(4,533	)		(5,020	)		(8,949	)
	W	(879	)		(2,661	)		(4,624	)		(6,541	)

36. Income Tax Expense

(1) Income tax expense for the three-month and six-month periods ended June 30, 2024 and 2023 are as follows:

	June 30, 2024						June 30, 2023
	Three-month period ended			Six-month period ended			Three-month period ended			Six-month period ended
Current income tax (*)	W	(100,159	)		207,826			12,695			109,333
Net adjustments for prior years		(17,774	)		(217,116	)		(10,905	)		(23,108	)
Changes in deferred income taxes on temporary differences		595,707			354,864			247,587			371,669
Deficit effect		—			—			—			156,618
Deferred income tax recognized directly to equity
Other comprehensive income		(26,032	)		116,348			104,528			2,947
Retained earnings		(103,183	)		(103,441	)		(2,047	)		(6,640	)
Income tax expense	W	348,559			358,481			351,858			610,819

(*) Includes changes such as those that arise from final tax returns.

S-97

Korea Development Bank

Notes to the Interim Separate Financial Statements

June 30, 2024 and 2023 (Unaudited), and December 31, 2023

(In millions of won)

36. Income Tax Expense, Continued

(2) Profit before income taxes and income tax expense for the six-month periods ended June 30, 2024 and 2023 are as follows:

	2024			2023
Profit before income taxes	W	2,032,297			3,425,412
Income taxes calculated using enacted tax rates		536,526			904,309
Adjustments:
Non-deductible losses and tax-free gains		(49,178	)		(35,813	)
Non-recognition effect of deferred income taxes and others		(79,243	)		(293,874	)
Net adjustments for prior years		(68,943	)		21,913
Others		19,319			14,284
		(178,045	)		(293,490	)
Income tax expense	W	358,481			610,819
Effective tax rate (%)		17.64			17.83

(3) Changes in income tax expense recognized directly to equity for the six-month periods ended June 30, 2024 and 2023 are as follows:

	2024
	June 30, 2024						January 1, 2024						Changes in tax effect
	Amounts before tax			Tax effect			Amounts before tax			Tax effect
Net gain on securities measured at FVOCI	W	1,678,355			(602,019	)		1,927,765			(691,480	)		89,461
Exchange differences on translation of foreign operations		287,174			—			152,225			—			—
Net gain on valuation of cash flow hedge		1,860			(667	)		2,969			(1,065	)		398
Net loss on hedges of net investments in foreign operations		(154,123	)		55,284			(86,315	)		30,961			24,323
Remeasurements of defined benefit liabilities		88,732			(31,826	)		88,732			(31,826	)		—
Fair value changes on financial liabilities designated at fair value due to credit risk		66,936			(24,012	)		72,975			(26,178	)		2,166
	W	1,968,934			(603,240	)		2,158,351			(719,588	)		116,348

S-98

Korea Development Bank

Notes to the Interim Separate Financial Statements

June 30, 2024 and 2023 (Unaudited), and December 31, 2023

(In millions of won)

36. Income Tax Expense, Continued

Income tax benefit recognized direct to retained earnings amounting toW103,441 million is the tax effect of realized income amounting toW391,821 million from disposal of equity securities measured at FVOCI.

	2023
	June 30, 2023						January 1, 2023						Changes in tax effect
	Amounts before tax			Tax effect			Amounts before tax			Tax effect
Net gain on securities measured at FVOCI	W	2,605,390			(934,542	)		2,557,521			(922,099	)		(12,443	)
Exchange differences on translation of foreign operations		184,687			—			132,126			—			—
Net gain on valuation of cash flow hedge		4,794			(1,720	)		5,322			(1,919	)		199
Net loss on hedges of net investments in foreign operations		(102,214	)		36,664			(71,202	)		25,672			10,992
Remeasurements of defined benefit liabilities		105,013			(37,665	)		104,870			(37,808	)		143
Fair value changes on financial liabilities designated at fair value due to credit risk		79,856			(28,646	)		90,696			(32,702	)		4,056
	W	2,877,526			(965,909	)		2,819,333			(968,856	)		2,947

Income tax benefit recognized direct to retained earnings amounting toW6,640 million is the tax effect of realized income amounting toW25,153 million from disposal of equity securities measured at FVOCI.

37. Earnings per Share

(1) Basic earnings per share

The Bank’s basic earnings per share for the three-month and six-month periods ended June 30, 2024 and 2023 are computed as follows:

(i) Basic earnings per share

	2024				2023
	Three-month period ended		Six-month period ended		Three-month period ended		Six-month period ended
Profit attributable to ordinary shareholders of the Bank (A) (in won)	W	1,080,681,694,796		1,673,815,643,907		1,723,074,760,031		2,814,593,464,464
Weighted-average number of ordinary shares outstanding (B)		5,203,672,208		5,001,085,394		4,726,806,273		4,679,306,243
Basic earnings per share (A/B) (in won)	W	208		335		365		601

S-99

Korea Development Bank

Notes to the Interim Separate Financial Statements

June 30, 2024 and 2023 (Unaudited), and December 31, 2023

(In millions of won)

37. Earnings per Share, Continued

(ii) Weighted-average number of ordinary shares outstanding

	2024
	Number of ordinary shares		Days		Cumulative shares
Three-month period ended:
Number of ordinary shares outstanding (A)		4,785,311,768		91		435,463,370,888
Increased paid-in capital (B)		400,000,000		91		36,400,000,000
Increased paid-in capital (C)		16,800,000		62		1,041,600,000
Increased paid-in capital (D)		24,200,000		26		629,200,000
Cumulative shares (E = A+B+C+D)						473,534,170,888
Weighted-average number of ordinary shares outstanding (E/91)						5,203,672,208
Six-month period ended:
Number of ordinary shares outstanding (A)		4,785,311,768		182		870,926,741,776
Increased paid-in capital (B)		400,000,000		94		37,600,000,000
Increased paid-in capital (C)		16,800,000		62		1,041,600,000
Increased paid-in capital (D)		24,200,000		26		629,200,000
Cumulative shares (E = A+B+C+D)						910,197,541,776
Weighted-average number of ordinary shares outstanding (E/182)						5,001,085,394
	2023
	Number of ordinary shares		Days		Cumulative shares
Three-month period ended:
Number of ordinary shares outstanding (A)		4,630,311,768		91		421,358,370,888
Increased paid-in capital (B)		87,000,000		91		7,917,000,000
Increased paid-in capital (C)		24,000,000		36		864,000,000
Cumulative shares (D = A+B+C)						430,139,370,888
Weighted-average number of ordinary shares outstanding (D/91)						4,726,806,273
Six-month period ended:
Number of ordinary shares outstanding (A)		4,630,311,768		181		838,086,430,008
Increased paid-in capital (B)		87,000,000		92		8,004,000,000
Increased paid-in capital (C)		24,000,000		36		864,000,000
Cumulative shares (D = A+B+C)						846,954,430,008
Weighted-average number of ordinary shares outstanding (D/181)						4,679,306,243

(2) Diluted earnings per share

Diluted and basic earnings per share for the three-month and six-month periods ended June 30, 2024 and 2023 are equal because there is no potential dilutive instrument.

S-100

Korea Development Bank

Notes to the Interim Separate Financial Statements

June 30, 2024 and 2023 (Unaudited), and December 31, 2023

(In millions of won)

38. Pledged Assets

Assets pledged by the Bank as collateral as of June 30, 2024 and December 31, 2023 are as follows:

	June 30, 2024				December 31, 2023
	Pledged assets		Related liabilities		Pledged assets		Related liabilities
Securities measured at FVOCI (*)	W	1,699,160		397,093		3,264,199		448,961
Securities measured at amortized cost (*)		3,817,264				15,413,180
	W	5,516,424		397,093		18,677,379		448,961

(*) Pledged as collateral related to bonds sold under repurchase agreements and borrowings.

39. Guarantees and Commitments

Guarantees and commitments as of June 30, 2024 and December 31, 2023 are as follows:

	June 30, 2024		December 31, 2023
Confirmed acceptances and guarantees:
Acceptances in foreign currency	W	203,509		179,849
Guarantees for bond issuance		2,378,815		2,347,527
Guarantees for loans		523,134		537,699
Letter of guarantee		85,950		35,858
Guarantees for on-lending debt		1,475		2,821
Others		8,458,374		7,700,977
		11,651,257		10,804,731
Unconfirmed acceptances and guarantees:
Letter of credit		2,126,039		2,219,357
Others		5,404,984		5,340,302
		7,531,023		7,559,659
Commitments:
Commitments on loans		59,293,549		54,816,638
Others		2,048,379		2,046,383
		61,341,928		56,863,021
	W	80,524,208		75,227,411

40. Trust Accounts

(1) Trust accounts as of June 30, 2024 and December 31, 2023 are as follows:

	June 30, 2024		December 31, 2023
Accrued trust fee	W	18,039		16,123
Borrowings from trust accounts		1,437,758		881,342
Accrued expense		3,979		2,257

S-101

Korea Development Bank

Notes to the Interim Separate Financial Statements

June 30, 2024 and 2023 (Unaudited), and December 31, 2023

(In millions of won)

40. Trust Accounts, Continued

(2) Transactions with trust accounts for the three-month and six-month periods ended June 30, 2024 and 2023 are as follows:

	June 30, 2024					June 30, 2023
	Three-month period ended		Six-month period ended			Three-month period ended			Six-month period ended
Trust management fee	W	9,005		18,539			8,795			17,725
Interest expenses of borrowings from trust accounts		(15,858)		(28,710	)		(16,713	)		(24,464	)

(3) The carrying amounts of principals guaranteed trust and principals and interest guaranteed trust as of June 30, 2024 and December 31, 2023 are as follows:

	June 30, 2024		December 31, 2023
Principals guaranteed trust	W	214,138		219,950
Principals and interest guaranteed trust		213,672		219,081
	W	427,810		439,031
Principal of money and property trust	W	387,406		400,818
Accrued trust profit		40,404		38,213

41. Related Party Transactions

(1) The Bank’s related parties as of June 30, 2024 are as follows:

Classification	Corporate name
Subsidiaries	KDB Capital Corporation, KDB Infrastructure Investment Asset Management Co., Ltd., KDB Asia Ltd., KDB Ireland Ltd., KDB Bank Europe Ltd., Banco KDB Do Brazil S.A., KDB Bank Uzbekistan, PT KDB Tifa Finance Tbk and 6 others, KDB Investment PEF No. 2, KDB Consus Value PEF, KDB Small Medium Mezzanine PEF and 7 others, Principals guaranteed trust accounts of KDB, Principals and interests guaranteed interest trust accounts of KDB, KDB ESG 1ST INC. and 14 others, KIAMCO Road Investment Private Fund Special Asset Trust 2 and 17 others
Associates	Korea Electric Power Co., Ltd., Korea Tourism Organization, Korea Real Estate Board, GM Korea Company, HMM Co., Ltd., Hanjin KAL, Korea Air Lines Co., Ltd., Hanwha Ocean Co., Ltd., Korea Ocean Business Corporation and 15 others, Keistone Value Investment 2nd PEF and 101 others, Hana K-NewDeal Unicorn Fund and 121 others
Others	Key management personnel

S-102

Korea Development Bank

Notes to the Interim Separate Financial Statements

June 30, 2024 and 2023 (Unaudited), and December 31, 2023

(In millions of won)

41. Related Party Transactions, Continued

(2) Significant balances with related parties as of June 30, 2024 and December 31, 2023 are as follows:

	Account	June 30, 2024			December 31, 2023
Subsidiaries:
KDB Capital Corporation	Loans	W	432			876
	Allowance for loan losses		—			(1	)
	Derivative financial assets		4,628			1,331
	Other assets		—			1
	Deposits		26			39
	Derivative financial liabilities		—			791
	Other liabilities		36,573			37,212
KDB Infrastructure Investment Asset Management Co., Ltd.	Deposits		24,062			14,847
	Other liabilities		440			118
KDB Ireland Ltd.	Loans		946,760			853,433
	Allowance for loan losses		(461	)		(416	)
	Derivative financial assets		24			2,461
	Other assets		8,397			7,873
	Derivative financial liabilities		18,730			15,377
KDB Bank Europe Ltd.	Cash and due from banks		623,824			578,908
	Loans		74,354			84,224
	Allowance for loan losses		(36	)		(41	)
	Other assets		4,345			4,726
	Derivative financial liabilities		315			313
Banco KDB Do Brazil S.A.	Cash and due from banks		131,002			104,441
	Loans		312,570			321,061
	Allowance for loan losses		(152	)		(156	)
	Other assets		5,517			8,415
	Allowance of other assets		(2	)		(4	)
PT KDB Tifa Finance Tbk	Loans		27,784			25,788
	Allowance for loan losses		(14	)		(13	)
	Other assets		143			134
KDB Silicon Valley LLC	Deposits		87,520			91,547
	Other liabilities		318			185
KDB Asia Ltd.	Cash and due from banks		1,333,915			1,291,474
	Loans		208,380			128,940
	Allowance for loan losses		(101	)		(63	)
	Derivative financial assets		140			98
	Other assets		10,453			10,313
	Allowance of other assets		(1	)		(1	)
	Deposits		2			2
	Derivative financial liabilities		5,288			5,002
KDB Bank Uzbekistan	Cash and due from banks		138,920			128,940
	Other assets		412			429

S-103

Korea Development Bank

Notes to the Interim Separate Financial Statements

June 30, 2024 and 2023 (Unaudited), and December 31, 2023

(In millions of won)

41. Related Party Transactions, Continued

	Account	June 30, 2024			December 31, 2023
KDB Consus Value PEF	Securities	W	278,736			274,423
	Allowance of securities		(23	)		(23	)
	Derivative financial assets		37,942			2,899
	Other assets		24,620			25,516
	Deposits		52			69
	Derivative financial liabilities		21			6,234
	Other liabilities		45,291			47,386
Corporate Liquidity Assistance Agency Co., Ltd.	Loans		440,000			440,000
	Allowance for loan losses		(238	)		(238	)
	Other assets		74,821			64,756
	Allowance of other assets		(40	)		(35	)
	Deposits		1,102,637			107,763
	Other liabilities		1,107			137
	Other provisions		224			224
Others	Loans		438,893			431,960
	Allowance for loan losses		(66,213	)		(62,201	)
	Derivative financial assets		1,978			7,722
	Other assets		2,665			3,019
	Allowance of other assets		(11	)		(9	)
	Deposits		92,752			128,073
	Borrowings		132,893			80,076
	Derivative financial liabilities		105			314
	Other liabilities		2,382			2,359
	Other provisions		5,662			17,929
Associates:
Korea Electric Power Co., Ltd.	Securities		200,494			168,701
	Loans		231,828			328,097
	Allowances for loan losses		(794	)		(1,082	)
	Derivative financial assets		30,568			84,826
	Other assets		4,823			5,783
	Deposits		325,439			371,020
	Borrowings		1,692			1,801
	Derivative financial liabilities		380,398			160,304
	Other liabilities		50,692			46,449
	Other provisions		173			85
HMM Co., Ltd.	Securities		2,705,944			3,286,533
	Loans		125,772			123,682
	Allowances for loan losses		(787	)		(775	)
	Other assets		5,863			4,280
	Deposits		101,000			258,880
	Other liabilities		18,555			17,292

S-104

Korea Development Bank

Notes to the Interim Separate Financial Statements

June 30, 2024 and 2023 (Unaudited), and December 31, 2023

(In millions of won)

41. Related Party Transactions, Continued

	Account	June 30, 2024			December 31, 2023
HANJIN KAL	Loans	W	437,145			447,774
	Allowances for loan losses		(2,543	)		(3,142	)
	Other assets		1,044			526
	Deposits		2,000			2,000
	Other liabilities		348			333
Korean Air Lines Co., Ltd.	Securities		64,761			64,154
	Loans		1,409,697			1,482,916
	Allowances for loan losses		(4,555	)		(4,831	)
	Derivative financial assets		13,890			8,790
	Other assets		10,640			13,743
	Deposits		1,759,050			1,605,661
	Derivative financial liabilities		178,840			47,542
	Other liabilities		33,856			81,256
	Other provisions		254			561
Korea Ocean Business Corporation	Securities		58,663			55,020
	Other assets		456			401
	Deposits		—			25,000
	Other liabilities		173			713
Hanwha Ocean Co., Ltd. (*)	Securities		64			64
	Loans		2,528,684			1,468,780
	Allowances for loan losses		(78,152	)		(146,570	)
	Derivative financial assets		475,194			328,988
	Other assets		9,912			8,443
	Deposits		389,957			156,336
	Other liabilities		14,316			11,968
	Other provisions		132,936			417,443
Associates:
Others	Securities		16,894			26,345
	Loans		432,729			218,912
	Allowances for loan losses		(11,443	)		(546	)
	Derivative financial assets		4,343			19
	Other assets		8,049			8,068
	Deposits		439,605			397,953
	Derivative financial liabilities		—			2,671
	Other liabilities		3,157			1,174
	Other provisions		69,269			46

(*) For the six-month period ended June 30, 2023, Hanwha Ocean Co., Ltd. was reclassified as an associate due to the loss of control.

S-105

Korea Development Bank

Notes to the Interim Separate Financial Statements

June 30, 2024 and 2023 (Unaudited), and December 31, 2023

(In millions of won)

41. Related Party Transactions, Continued

(3) Significant profit or loss with related parties for the six-month periods ended June 30, 2024 and 2023 are as follows:

	Account	2024			2023
Subsidiaries:
KDB Capital Corporation	Interest income	W	5			13
	Dividend income		31,435			21,060
	Fees and commission income, other income		5,149			1,049
	Interest expenses		(625	)		(711	)
	Other operating expenses		—			(425	)
KDB Infrastructure Investments Asset Management Co., Ltd.	Dividend income		13,886			13,634
	Interest expenses		(425	)		(119	)
KDB Ireland Ltd.	Interest income		25,963			19,081
	Fees and commission income, other income		3,605			2,199
	Interest expenses		(14	)		(29	)
	Provision for loan losses		(12	)		(130	)
	Other operating expenses		(15,114	)		(7,904	)
KDB Bank Europe Ltd.	Interest income		17,109			9,328
	Reversal of allowance for loan losses		7			—
	Fees and commission income, other income		20			652
	Provision for loan losses		—			(6	)
	Other operating expenses		(113	)		(1,562	)
Banco KDB Do Brazil S.A.	Interest income		11,689			9,056
	Reversal of allowance for loan losses		20			—
	Provision for loan losses		—			(83	)
	Other operating expenses		(2	)		(3	)
KDB Indonesia Ltd.	Interest income		819			699
	Provision for loan losses		—			(4	)
KDB Silicon Valley LLC	Interest expenses		(2,373	)		(2,563	)
KDB Asia Ltd.	Interest income		42,066			40,771
	Reversal of allowance for loan losses		—			27
	Fees and commission income, other income		563			1,415
	Interest expenses		(196	)		(229	)
	Provision for loan losses		(33	)		—
	Other operating expenses		(101	)		(3,059	)
KDB Bank Uzbekistan	Interest income		4,239			—

S-106

Korea Development Bank

Notes to the Interim Separate Financial Statements

June 30, 2024 and 2023 (Unaudited), and December 31, 2023

(In millions of won)

41. Related Party Transactions, Continued

	Account	2024			2023
KDB Consus Value PEF	Interest income	W	10,103			2,182
	Fees and commission income, other income		50,872			13,130
	Interest expenses		(13	)		(8	)
	Other operating expenses		(204	)		(2,849	)
Hanwha Ocean Co., Ltd. (*)	Interest income		—			30,416
	Reversal of allowance for loan losses		—			332,986
	Fees and commission income, other income		—			306,575
	Interest expenses		—			(1,160	)
	Other operating expenses		—			(499,906	)
Corporate Liquidity Assistance Agency Co., Ltd.	Interest income		10,065			10,023
	Interest expenses		(7,128	)		(1,478	)
	Provision for loan losses		—			(76	)
	Other operating expenses		(5	)		(86	)
Others	Interest income		9,879			13,647
	Dividend income		67,907			25,259
	Reversal of allowance for loan losses		719			4,629
	Fees and commission income, other income		26,218			9,023
	Interest expenses		(2,063	)		(2,296	)
	Provision for loan losses		—			(1,723	)
	Other operating expenses		(6,084	)		(5,981	)
Associates:
Korea Electric Power Co., Ltd.	Interest income		12,662			11,446
	Reversal of allowance for loan losses		288			—
	Fees and commission income, other income		48,780			70,253
	Interest expenses		(7,169	)		(4,294	)
	Provision for loan losses		—			(1,307	)
	Other operating expenses		(352,959	)		(188,779	)
HMM Co., Ltd.	Interest income		13,089			21,051
	Dividend income		140,840			121,439
	Fees and commission income, other income		2,098			1,320
	Interest expenses		(4,274	)		(31,913	)
	Provision for loan losses		(12	)		(914	)
	Other operating expenses		(11,723	)		(82,543	)

S-107

Korea Development Bank

Notes to the Interim Separate Financial Statements

June 30, 2024 and 2023 (Unaudited), and December 31, 2023

(In millions of won)

41. Related Party Transactions, Continued

	Account	2024			2023
HANJIN KAL	Interest income		5,823			3,347
	Dividend income		2,119			1,201
	Reversal of allowance for loan losses		600			—
	Fees and commission income, other income		15			—
	Interest expenses		(37	)		(780	)
	Other operating expenses		(10,629	)		(7,769	)
Korea Air Lines Co., Ltd.	Interest income	W	37,394			31,386
	Dividend income		9,180			9,180
	Reversal of allowance for loan losses		276			—
	Fees and commission income, other income		49,145			39,499
	Interest expenses		(36,486	)		(30,663	)
	Provision for loan losses		—			(3,381	)
	Other operating expenses		(214,246	)		(68,919	)
Korea Ocean Business Corporation	Interest income		1,763			395
	Fees and commission income, other income		502			—
	Interest expenses		(222	)		(76	)
	Other operating expenses		(1,190	)		(1,753	)
Hanwha Ocean Co., Ltd. (*)	Interest income		46,453			67,155
	Reversal of allowance for loan losses		68,417			—
	Fees and commission income, other income		701,601			426,846
	Interest expenses		(7,609	)		(3,299	)
	Provision for loan losses		—			(166,087	)
	Other operating expenses		(52,133	)		(566,392	)
Others	Interest income		9,717			12,719
	Dividend income		193,799			73,913
	Reversal of allowance for loan losses		116,063			—
	Fees and commission income, other income		11,372			787
	Interest expenses		(4,792	)		(4,261	)
	Provision for loan losses		(10,940	)		(594	)
	Other operating expenses		(76,538	)		(307	)

(*) For the six-month period ended June 30, 2023, Hanwha Ocean Co., Ltd. was reclassified as an associate due to the loss of control.

S-108

Korea Development Bank

Notes to the Interim Separate Financial Statements

June 30, 2024 and 2023 (Unaudited), and December 31, 2023

(In millions of won)

41. Related Party Transactions, Continued

(4) Details of guarantees and commitments to the related parties as of June 30, 2024 and December 31, 2023 are as follows:

	Account	June 30, 2024		December 31, 2023
Subsidiaries:
KDB Capital Corporation	Commitments	W	500,000		500,000
KDB Consus Value PEF	Confirmed acceptances and guarantees		132,840		132,840
Corporate Liquidity Assistance Agency Co., Ltd.	Commitments		560,000		560,000
Others	Unconfirmed acceptances and guarantees		6,255		885
	Commitments		989,599		1,059,271
Associates:
Korean Air Lines Co., Ltd.	Confirmed acceptances and guarantees		182,302		172,957
	Commitments		30,000		30,000
Hanwha Ocean Co., Ltd. (*)	Confirmed acceptances and guarantees		3,714,288		3,529,955
	Unconfirmed acceptances and guarantees		2,422,203		2,150,165
	Commitments		878,495		1,836,929
Others	Commitments		500,418		377,891
		W	9,916,400		10,350,893

(*) For the six-month period ended June 30, 2023, Hanwha Ocean Co., Ltd. was reclassified as an associate due to the loss of control.

(5) Details of compensation to key management personnel for the six-month periods ended June 30, 2024 and 2023 are as follows:

	2024		2023
Short-term employee benefits	W	182		295

(6) The Bank are not pledged any assets as collaterals to the related parties and from the related parties as of June 30, 2024 and December 31, 2023.

S-109

Korea Development Bank

Notes to the Interim Separate Financial Statements

June 30, 2024 and 2023 (Unaudited), and December 31, 2023

(In millions of won)

42. Statements of Cash Flows

(1) Cash and cash equivalents in the separate statements of cash flows as of June 30, 2024 and 2023 are as follows:

	June 30, 2024			June 30, 2023
Cash and due from banks:
Cash and foreign currencies	W	71,123			65,574
Due from banks in Korean won		3,658,006			7,301,476
Due from banks in foreign currencies		8,951,566			7,996,120
		12,680,695			15,363,170
Less: Restricted due from banks, others		(3,126,296	)		(4,818,547	)
Add: Financial instruments reaching maturity within three months from date of acquisition
Securities measured at FVTPL
Government bonds		10,006			—
Loans measured at amortized cost:
Call-loans		3,260,267			2,324,507
Inter-bank loans		1,379,689			1,271,857
		4,639,956			3,596,364
		4,649,962			3,596,364
	W	14,204,361			14,140,987

(2) Significant transactions not involving cash flows for the six-month periods ended June 30, 2024 and 2023 are as follows:

	2024			2023
Decrease in loans due to write-offs	W	363			47,615
Increase in securities measured at FVOCI due to debt-to-equity swap		37,301			1
Increase in investments in subsidiaries and associates due to debt-to-equity swap		54,719			—
Increase (decrease) in accumulated other comprehensive income due to securities valuation		(338,871	)		60,312
Deferred income tax effect due to securities valuation		89,461			(12,443	)
Reclassification from investments in subsidiaries and associates to securities measured at FVPL		—			4,800
Reclassification from investments in subsidiaries and associates to securities measured at FVOCI		544,800			—
Transfer from property and equipment to investment property		10,781			4,344
Recognition of right-of-use assets and lease liabilities		15,638			37,458
In-kind equity		1,999,780			432,137

S-110

Korea Development Bank

Notes to the Interim Separate Financial Statements

June 30, 2024 and 2023 (Unaudited), and December 31, 2023

(In millions of won)

43. Transfers of Financial Instruments

Details of financial assets and liabilities related to repurchase agreements and loaned securities that do not qualify for derecognition as of June 30, 2024 and December 31, 2023 are as follows:

	June 30, 2024				December 31, 2023
Characteristics of transactions	Carrying amounts for transferred assets		Carrying amounts for related liabilities		Carrying amounts for transferred assets		Carrying amounts for related liabilities
Repurchase agreements	W	770,000		7,018		1,447,767		30,095
Loaned securities		60,139		—		39,341		—
	W	830,139		7,018		1,487,108		30,095

44. Fair Value of Financial Assets and Liabilities

The Bank classifies and discloses fair value of the financial instruments into the following three-level hierarchy:

• Level 1: Financial instruments measured at quoted prices from active markets are classified as level 1.

• Level 2: Financial instruments measured using valuation techniques where all significant inputs are observable market data are classified as level 2.

• Level 3: Financial instruments measured using valuation techniques where one or more significant inputs are not based on observable market data are classified as level 3.

(1) Fair value hierarchy of financial instruments measured at fair value

(i) The fair value hierarchy of financial instruments measured at fair value as of June 30, 2024 and December 31, 2023 are as follows:

	June 30, 2024
	Level 1		Level 2		Level 3		Total
Financial assets:
Securities measured at FVTPL	W	2,229,092		3,464,589		13,305,192		18,998,873
Securities measured at FVOCI		2,164,398		17,639,912		16,185,106		35,989,416
Loans measured at FVTPL		—		—		439,026		439,026
Derivative financial assets		1		9,677,571		271		9,677,843
	W	4,393,491		30,782,072		29,929,595		65,105,158
Financial liabilities:
Financial liabilities designated at FVTPL	W	—		2,191,508		—		2,191,508
Derivative financial liabilities		18		10,648,685		24,951		10,673,654
	W	18		12,840,193		24,951		12,865,162

S-111

Korea Development Bank

Notes to the Interim Separate Financial Statements

June 30, 2024 and 2023 (Unaudited), and December 31, 2023

(In millions of won)

44. Fair Value of Financial Assets and Liabilities, Continued

	December 31, 2023
	Level 1		Level 2		Level 3		Total
Financial assets:
Securities measured at FVTPL	W	1,784,605		1,567,893		12,706,058		16,058,556
Securities measured at FVOCI		2,397,136		16,646,131		14,844,797		33,888,064
Loans measured at FVTPL		—		—		488,432		488,432
Derivative financial assets		—		7,383,047		278		7,383,325
	W	4,181,741		25,597,071		28,039,565		57,818,377
Financial liabilities:
Financial liabilities measured at FVTPL	W	—		1,920,061		—		1,920,061
Derivative financial liabilities		32		7,631,930		22,939		7,654,901
	W	32		9,551,991		22,939		9,574,962

(ii) Changes in the fair value of level 3 financial instruments for the six-month periods ended June 30, 2024 and 2023 are as follows:

	2024
	Financial assets															Financial liabilities
	Securities measured at FVTPL			Securities measured at FVOCI			Loans measured at FVTPL			Derivative financial assets			Total			Derivative financial liabilities
January 1, 2024	W	12,706,058			14,844,797			488,432			278			28,039,565			22,939
Profit or loss		249,185			—			(15,671	)		(7	)		233,507			2,012
Other comprehensive income		—			(413,598	)		—			—			(413,598	)		—
Acquisition / Issue		694,318			2,120,114			—			—			2,814,432			—
Sale / Settlement		(339,373	)		(183,739	)		(33,952	)		—			(557,064	)		—
Transfer out (*)		(4,996	)		(182,468	)		—			—			(187,464	)		—
Others		—			—			217			—			217			—
June 30, 2024	W	13,305,192			16,185,106			439,026			271			29,929,595			24,951

S-112

Korea Development Bank

Notes to the Interim Separate Financial Statements

June 30, 2024 and 2023 (Unaudited), and December 31, 2023

(In millions of won)

44. Fair Value of Financial Assets and Liabilities, Continued

	2023
	Financial assets															Financial liabilities
	Securities measured at FVTPL			Securities measured at FVOCI			Loans measured at FVTPL			Derivative financial assets			Total			Derivative financial liabilities
January 1, 2023	W	10,610,539			16,224,072			541,811			12,762			27,389,184			40,359
Profit or loss		179,012			—			(11,625	)		(1,136	)		166,251			(3,655	)
Other comprehensive income		—			(148,755	)		—			—			(148,755	)		—
Acquisition / Issue		1,087,211			702,878			6,737			—			1,796,826			—
Sale / Settlement		(292,130	)		(43,066	)		(28,036	)		—			(363,232	)		(5,965	)
Transfer out (*)		—			(82,575	)		—			—			(82,575	)		—
June 30, 2023	W	11,584,632			16,652,554			508,887			11,626			28,757,699			30,739

(*) When significant inputs become observable market data, the financial instruments are transferred to (from) other levels.

(iii) Changes in deferred day one profit or loss for the six-month periods ended June 30, 2024 and 2023 are as follows:

	2024			2023
Beginning balance	W	3,219			3,604
Amortization		(193	)		(193	)
Ending balance	W	3,026			3,411

(iv) Details of valuation technique and inputs used in the fair value measurement categorized within level 2 of the fair value hierarchy of financial instruments measured at fair value as of June 30, 2024 and December 31, 2023 are as follows:

	Valuation technique	Input
Securities measured at FVTPL
Equity securities	Net asset value approach	Underlying asset price
Debt securities	Discounted cash flow method	Discount rate
Securities measured at FVOCI
Equity securities	Net asset value approach	Underlying asset price
Debt securities	Discounted cash flow method	Discount rate
Derivatives financial assets:
Interest rate swaps	Discounted cash flow method, Black-Scholes model, Modified Black model, Formula model	Discount rate, exchange rate, volatility, commodity index, etc.
Currency forwards and swaps
Currency options
Commodities options
Financial liabilities measured at FVTPL:
Debentures	Discounted cash flow method	Discount rate

S-113

Korea Development Bank

Notes to the Interim Separate Financial Statements

June 30, 2024 and 2023 (Unaudited), and December 31, 2023

(In millions of won)

44. Fair Value of Financial Assets and Liabilities, Continued

(v) Details of valuation technique and quantitative information about unobservable inputs used in the fair value measurement categorized within level 3 of the fair value hierarchy of financial instruments measured at fair value as of June 30, 2024 and December 31, 2023 are as follows:

	June 30, 2024
	Valuation technique	Unobservable input	Range (%)
Securities measured at FVTPL
Equity securities	Discounted cash flow method, Relative value approach, Net asset value approach, etc	Discount rate	5.25 ~ 20.40
		Rate of increase in property disposal price	—
		Rate of increase in liquidation value	—
		Volatility	15.44 ~ 53.77
Securities measured at FVOCI
Equity securities	Discounted cash flow method, Relative value approach, Net asset value approach, etc	Growth rate Discount rate Volatility Interest Volatility	—  9.00 ~ 23.39  22.59 ~ 42.69   0.43 ~ 0.68
Loans measured at FVTPL Convertible bonds, etc.	LSMC, Binomial model	Volatility	15.44 ~ 53.77
Derivatives financial assets
Interest rate swaps	Hull-White Two-Factor model	Volatility Correlation coefficient	0.53 ~ 0.90   (70) ~ 100
	December 31, 2023
	Valuation technique	Unobservable input	Range (%)
Securities measured at FVTPL
Equity securities	Discounted cash flow method, Relative value approach, Net asset value approach, etc.	Discount rate	7.04 ~ 17.0
		Rate of increase in property disposal price	—
		Rate of increase in liquidation value	—
		Volatility	19.68 ~ 76.22
Securities measured at FVOCI
Equity securities	Discounted cash flow method, Relative value approach, Net asset value approach, etc.	Growth rate Discount rate Volatility Interest rate Volatility	—  9.25 ~ 20.40  16.68 ~ 76.22  0.51 ~ 0.86

S-114

Korea Development Bank

Notes to the Interim Separate Financial Statements

June 30, 2024 and 2023 (Unaudited), and December 31, 2023

(In millions of won)

44. Fair Value of Financial Assets and Liabilities, Continued

	December 31, 2023
	Valuation technique	Unobservable input	Range (%)
Loans measured at FVTPL
Convertible bonds, etc.	LSMC, Binomial model	Volatility	16.68 ~ 76.22
Derivatives financial assets
Interest rate swaps	Hull-White Two-Factor model	Volatility Correlation coefficient	0.51 ~ 1.06   (70) ~ 100
Stock index options	Discounted cash flow method, Relative value approach, Net asset value approach, Binomial Tree(T-F)	Volatility	19.59 ~ 25.45

(vi) The sensitivity analysis on changes in unobservable inputs for financial instruments categorized within level 3 of the fair value hierarchy of financial instruments measured at fair value as of June 30, 2024 and December 31, 2023 is as follows:

	June 30, 2024
	Profit (loss)						Other comprehensive income(loss)
	Favorable change			Unfavorable change			Favorable change		Unfavorable change
Securities measured at FVTPL (*1)	W	75,235			(70,073	)		—		—
Securities measured at FVOCI (*1)		—			—			39,688		(35,862	)
Loans measured at FVTPL (*2)		4,799			(4,565	)		—		—
Derivative financial assets (*2)		328			(312	)		—		—
	W	80,362			(74,950	)		39,688		(35,862	)
	December 31, 2023
	Profit(loss) for the year						Other comprehensive income(loss)
	Favorable change			Unfavorable change			Favorable change		Unfavorable change
Securities measured at FVTPL (*1)	W	(1,876	)		(2,487	)		—		—
Securities measured at FVOCI (*1)		—			—			26,489		(23,913	)
Loans measured at FVTPL (*2)		6,170			(5,936	)		—		—
Derivative financial assets (*2)		264			(247	)		—		—
	W	4,558			(8,670	)		26,489		(23,913	)

(*1) Sensitivity amounts of equity securities are calculated by increasing and decreasing the correlations between the discount rates and the growth rates (0~1%) or the rate of increase in liquidation value (-1~1%) which are significant unobservable inputs. Sensitivity amounts for beneficiary certificates are calculated by increasing and decreasing the correlations between the discount rate of rent cash flow (-1~1%) and the rate

S-115

Korea Development Bank

Notes to the Interim Separate Financial Statements

June 30, 2024 and 2023 (Unaudited), and December 31, 2023

(In millions of won)

44. Fair Value of Financial Assets and Liabilities, Continued

of increase in property disposal price (-1~1%), only when they consist of real properties. Other than that, it is difficult to measure the sensitivity amounts of beneficiary certificates for practical reasons. Also, for financial instruments categorized within level 3 as of June 30, 2024 and December 31, 2023,W23,801,542 million andW21,479,411 million, respectively, are excluded from the sensitivity disclosure because it is impossible to calculate the sensitivity due to changes in unobservable variables for practical reasons.

(*2) Sensitivity amounts of loans measured at FVTPL and derivatives financial instruments are calculated by increasing and decreasing the correlation coefficient and volatility (-10~10%) which are significant unobservable inputs.

(2) Fair value hierarchy of financial instruments measured at amortized cost

(i) The Bank’s policies for measuring fair value of financial instruments at amortized costs are as follows:

- Cash and due from banks: Fair value of cash is considered equivalent to the carrying amount. In the case of due from banks on demand, which do not have a set maturity and can be realized instantly, the carrying amount is a close estimate of the fair value and is assumed so. In the case of other ordinary due from banks, the cash flow discount method is used to estimate the fair value.

- Securities measured at amortized cost: The fair value of securities measured at amortized cost is computed by widely-accepted appraisal agencies upon request.

- Loans measured at amortized cost: The fair value of loans measured at amortized cost is the expected future cash flows, reflecting premature redemption ratio, discounted by the market interest rate, adjusted by a spread sheet considering the probability of default. Exceptions to this method include loans with credit line facilities, loans with a maturity of three months or less left and impaired loans, which the Bank assumes the carrying amount as the fair value.

- Deposits: The fair value of deposits is computed using the discounted cash flow method. However, for deposits, whose cash flows cannot be estimated reasonably, the Bank assumes the carrying amount as the fair value.

- Borrowings: The fair value of industrial financial debentures is computed using the discounted cash flow method by the Bank’s Fair Value Evaluation System. However, for borrowings including call money whose contractual maturity is three months or less, the Bank assumes the carrying amount as the fair value.

- Debentures: The fair value of industrial financial debentures is computed using the discounted cash flow method by the Bank’s Fair Value Evaluation System.

- Other financial assets and liabilities: The fair value of other financial assets and liabilities is computed using the discounted cash flow method. However, in cases cash flow cannot be estimated reasonably, the Bank assumes the carrying amount as the fair value.

S-116

Korea Development Bank

Notes to the Interim Separate Financial Statements

June 30, 2024 and 2023 (Unaudited), and December 31, 2023

(In millions of won)

44. Fair Value of Financial Assets and Liabilities, Continued

(ii) The fair value hierarchy of financial instruments measured at amortized cost as of June 30, 2024 and December 31, 2023 are as follows:

	June 30, 2024
	Level 1		Level 2		Level 3		Total
Financial assets:
Cash and due from banks (*)	W	9,554,399		3,126,296		—		12,680,695
Securities measured at amortized cost		4,035,674		4,791,858		—		8,827,532
Loans measured at amortized cost (*)		—		3,301,943		200,816,534		204,118,477
Other financial assets (*)		—		7,447,442		1,955,313		9,402,755
	W	13,590,073		18,667,539		202,771,847		235,029,459
Financial liabilities:
Deposits (*)	W	—		1,805,028		67,025,598		68,830,626
Borrowings (*)		—		4,511,767		27,834,763		32,346,530
Debentures		—		160,375,358		—		160,375,358
Other financial liabilities (*)		—		6,759,671		5,418,733		12,178,404
	W	—		173,451,824		100,279,094		273,730,918

	December 31, 2023
	Level 1		Level 2		Level 3		Total
Financial assets:
Cash and due from banks (*)	W	6,195,521		2,464,287		—		8,659,808
Securities measured at amortized cost		3,841,102		4,742,086		—		8,583,188
Loans measured at amortized cost (*)		—		4,547,212		195,510,878		200,058,090
Other financial assets (*)		—		8,432,806		1,701,156		10,133,962
	W	10,036,623		20,186,391		197,212,034		227,435,048
Financial liabilities:
Deposits (*)	W	—		1,896,208		64,054,989		65,951,197
Borrowings (*)		—		2,268,046		25,322,073		27,590,119
Debentures		—		157,898,543		—		157,898,543
Other financial liabilities (*)		—		7,027,953		4,772,875		11,800,828
	W	—		169,090,750		94,149,937		263,240,687

(*) For financial instruments categorized as level 2, the carrying amount is considered as a reasonable approximation of the fair value and is thus, disclosed by fair value.

S-117

Korea Development Bank

Notes to the Interim Separate Financial Statements

June 30, 2024 and 2023 (Unaudited), and December 31, 2023

(In millions of won)

44. Fair Value of Financial Assets and Liabilities, Continued

(iii) Details of valuation technique and inputs used in the fair value measurement categorized within level 2 and level 3 of the fair value hierarchy of financial instruments measured at amortized cost as of June 30, 2024 and December 31, 2023 are as follows:

	Valuation technique	Input
Level 2
Financial assets:
Securities measured at amortized cost	Discounted cash flow method	Discount rate
Financial liabilities:
Debentures	Discounted cash flow method	Discount rate
Level 3
Financial assets:
Loans measured at amortized cost	Discounted cash flow method	Credit spread, Other spread, Prepayment rate
Other financial assets	Discounted cash flow method	Other spread
Financial liabilities:
Deposits	Discounted cash flow method	Other spread
Borrowings	Discounted cash flow method	Other spread
Other financial liabilities	Discounted cash flow method	Other spread

45. Categories of Financial Assets and Liabilities

Categories of financial assets and liabilities as of June 30, 2024 and December 31, 2023 are as follows:

	June 30, 2024
	Cash and cash equivalents		Financial instruments measured at FVTPL		Financial instruments designated at FVTPL		Financial instruments measured at FVOCI		Financial instruments designated at FVOCI		Financial instruments measured at amortized cost		Hedging purpose derivative instruments		Total
Financial assets:
Cash and due from banks	W	9,554,399		—		—		—		—		3,126,296		—		12,680,695
Securities measured at FVTPL		10,006		18,988,867		—		—		—		—		—		18,998,873
Securities measured at FVOCI		—		—		—		18,822,422		17,166,994		—		—		35,989,416
Securities measured at amortized cost		—		—		—		—		—		8,827,532		—		8,827,532
Loans measured at FVTPL		—		439,026		—		—		—		—		—		439,026
Loans measured at amortized cost		4,639,956		—		—		—		—		199,353,434		—		203,993,390
Derivative financial assets		—		9,447,057		—		—		—		—		230,786		9,677,843
Other financial assets		—		—		—		—		—		9,403,878		—		9,403,878
	W	14,204,361		28,874,950		—		18,822,422		17,166,994		220,711,140		230,786		300,010,653
Financial liabilities:
Financial liabilities measured at FVTPL	W	—		—		2,191,508		—		—		—		—		2,191,508
Deposits		—		—		—		—		—		68,796,550		—		68,796,550
Borrowings		—		—		—		—		—		32,515,024		—		32,515,024
Debentures		—		—		—		—		—		158,758,239		—		158,758,239
Derivative financial liabilities		—		9,729,787		—		—		—		—		943,867		10,673,654
Other financial liabilities		—		—		—		—		—		12,209,094		—		12,209,094
	W	—		9,729,787		2,191,508		—		—		272,278,907		943,867		285,144,069

S-118

Korea Development Bank

Notes to the Interim Separate Financial Statements

June 30, 2024 and 2023 (Unaudited), and December 31, 2023

(In millions of won)

45. Categories of Financial Assets and Liabilities, Continued

	December 31, 2023
	Cash and cash equivalents		Financial instruments measured at FVTPL		Financial instruments designated at FVTPL		Financial instruments measured at FVOCI		Financial instruments designated at FVOCI		Financial instruments measured at amortized cost		Hedging purpose derivative instruments		Total
Financial assets:
Cash and due from banks	W	6,195,521		—		—		—		—		2,464,287		—		8,659,808
Securities measured at FVTPL		162,256		15,896,300		—		—		—		—		—		16,058,556
Securities measured at FVOCI		—		—		—		18,243,848		15,644,216		—		—		33,888,064
Securities measured at amortized cost		—		—		—		—		—		8,583,188		—		8,583,188
Loans measured at FVTPL		—		488,432		—		—		—		—		—		488,432
Loans measured at amortized cost		5,502,800		—		—		—		—		194,478,980		—		199,981,780
Derivative financial assets		—		6,821,024		—		—		—		—		562,301		7,383,325
Other financial assets		—		—		—		—		—		10,136,642		—		10,136,642
	W	11,860,577		23,205,756		—		18,243,848		15,644,216		215,663,097		562,301		285,179,795
Financial liabilities:
Financial liabilities measured at FVTPL	W	—		—		1,920,061		—		—		—		—		1,920,061
Deposits		—		—		—		—		—		65,897,732		—		65,897,732
Borrowings		—		—		—		—		—		27,745,629		—		27,745,629
Debentures		—		—		—		—		—		156,933,867		—		156,933,867
Derivative financial liabilities		—		6,961,386		—		—		—		—		693,515		7,654,901
Other financial liabilities		—		—		—		—		—		11,823,274		—		11,823,274
	W	—		6,961,386		1,920,061		—		—		262,400,502		693,515		271,975,464

46. Offsetting of Financial Assets and Liabilities

Details of financial instruments subject to offsetting, enforceable master netting agreements or similar agreements as of June 30, 2024 and December 31, 2023 are as follows:

	June 30, 2024
	Gross amounts of recognized financial asset		Gross amounts of recognized financial liabilities set off in the statement of financial position		Net amounts of financial assets presented in the statement of financial position		Related amounts not set off in the statement of financial position				Net amounts
							Financial instruments		Cash collateral received
Derivative financial assets (*)	W	9,677,843		—		9,677,843		6,777,037		16,581		2,884,225
Unsettled spot exchange receivables (*)		6,180,247		—		6,180,247		6,172,698		—		7,549
Unsettled domestic exchange receivables		4,349,255		3,082,060		1,267,195		—		—		1,267,195
Security pledged as collateral for repurchase agreements		770,000		—		770,000		7,018		—		762,982
Reverse repurchase agreements		2,856,600		—		2,856,600		2,856,600		—		—
Loaned securities		60,139		—		60,139		60,139		—		—
Receivables from securities transaction		24,291		—		24,291		24,291		—		—
	W	23,918,375		3,082,060		20,836,315		15,897,783		16,581		4,921,951

S-119

Korea Development Bank

Notes to the Interim Separate Financial Statements

June 30, 2024 and 2023 (Unaudited), and December 31, 2023

(In millions of won)

46. Offsetting of Financial Assets and Liabilities, Continued

	June 30, 2024
	Gross amounts of recognized financial liabilities		Gross amounts of recognized financial assets set off in the statement of financial position		Net amounts of financial liabilities presented in the statement of financial position		Related amounts not set off in the statement of financial position				Net amounts
							Financial instruments		Cash collateral pledged
Derivative financial liabilities (*)	W	10,673,654		—		10,673,654		5,836,086		324,161		4,513,407
Unsettled spot exchange payables (*)		6,174,405		—		6,174,405		6,172,698		—		1,707
Unsettled domestic exchange payables		3,667,326		3,082,060		585,266		—		—		585,266
Repurchase agreements		7,018		—		7,018		7,018		—		—
Payables from securities transaction		58,083		—		58,083		58,083		—		—
	W	20,580,486		3,082,060		17,498,426		12,073,885		324,161		5,100,380

	December 31, 2023
	Gross amounts of recognized financial asset		Gross amounts of recognized financial liabilities set off in the statement of financial position		Net amounts of financial assets presented in the statement of financial position		Related amounts not set off in the statement of financial position				Net amounts
							Financial instruments		Cash collateral received
Derivative financial assets (*)	W	7,383,325		—		7,383,325		4,953,052		171,466		2,258,807
Unsettled spot exchange receivables (*)		6,494,499		—		6,494,499		6,493,455		—		1,044
Unsettled domestic exchange receivables		5,110,172		3,171,865		1,938,307		—		—		1,938,307
Security pledged as collateral for repurchase agreements		1,447,767		—		1,447,767		30,095		—		1,417,672
Reverse repurchase agreements		2,599,900		—		2,599,900		2,599,900		—		—
Loaned securities		39,341		—		39,341		39,341		—		—
Receivables from securities transaction		39,213		—		39,213		39,213		—		—
	W	23,114,217		3,171,865		19,942,352		14,155,056		171,466		5,615,830

S-120

Korea Development Bank

Notes to the Interim Separate Financial Statements

June 30, 2024 and 2023 (Unaudited), and December 31, 2023

(In millions of won)

46. Offsetting of Financial Assets and Liabilities, Continued

	December 31, 2023
	Gross amounts of recognized financial liabilities		Gross amounts of recognized financial assets set off in the statement of financial position		Net amounts of financial liabilities presented in the statement of financial position		Related amounts not set off in the statement of financial position				Net amounts
							Financial instruments		Cash collateral pledged
Derivative financial liabilities (*)	W	7,654,901		—		7,654,901		4,385,976		207,942		3,060,983
Unsettled spot exchange payables (*)		6,494,121		—		6,494,121		6,493,455		—		666
Unsettled domestic exchange payables		3,705,699		3,171,866		533,833		—		—		533,833
Repurchase agreements		30,095		—		30,095		30,095		—		—
Payables from securities transaction		13,536		—		13,536		13,536		—		—
	W	17,898,352		3,171,866		14,726,486		10,923,062		207,942		3,595,482

(*) For the derivatives covered by the ISDA derivative contracts, all contracts are settled and the net amount of derivative contracts is measured and paid based on the liquidation value if the counterparty files for bankruptcy or has any credit issues.

47. Operating Segments

(1) The Bank has four reportable segments, as described below, which are the Bank’s strategic business units. They are managed separately because each business requires different technology and marketing strategies. The following summary describes general information about each of the Bank’s reportable segments:

Segments	General information
Corporate finance	Provides trade finance and loans to corporate customers
Investment finance	Provides consulting services to corporate such as capital finance, restructuring, etc.
Asset management	Provides asset management services to individual and corporate customers
Others	Any other segment not mentioned above

(2) Operating income (loss) from external customers and among operating segments for the six-month periods ended June 30, 2024 and 2023 are as follows:

	2024
	Corporate finance		Investment finance		Asset management		Others			Total
Operating income from external customers	W	3,736,233		805,323		19,551		(2,900,494	)		1,660,613
Operating income (loss) from intersegment sales		50		5,561		—		(5,611	)		—
	W	3,736,283		810,884		19,551		(2,906,105	)		1,660,613

S-121

Korea Development Bank

Notes to the Interim Separate Financial Statements

June 30, 2024 and 2023 (Unaudited), and December 31, 2023

(In millions of won)

47. Operating Segments, Continued

	2023
	Corporate finance		Investment finance			Asset management		Others			Total
Operating income from external customers	W	1,592,290		811,088			25,484		(41,826	)		2,387,036
Operating income (loss) from intersegment sales		—		(6,987	)		—		6,987			—
	W	1,592,290		804,101			25,484		(34,839	)		2,387,036

(3) Details of segment results for the Bank’s reportable segments for the six-month periods ended June 30, 2024 and 2023 are as follows:

	2024
	Corporate finance			Investment finance			Asset management			Others			Total
Net interest income	W	852,264			(304,278	)		8,808			5,960			562,754
Non-interest income
Income related to securities (*1)		133,190			44,565			—			68,254			246,009
Other non-interest income		2,657,883			1,114,454			15,004			(2,881,992	)		905,349
		2,791,073			1,159,019			15,004			(2,813,738	)		1,151,358
Provision for loan losses and others (*2)		340,332			(5,861	)		—			(117	)		334,354
General and administrative expenses		(247,386	)		(37,996	)		(4,261	)		(98,210	)		(387,853	)
Operating income	W	3,736,283			810,884			19,551			(2,906,105	)		1,660,613

	2023
	Corporate finance			Investment finance			Asset management			Others			Total
Net interest income	W	1,062,476			(262,704	)		8,360			66,084			874,216
Non-interest income
Income related to securities (*1)		20,504			57,997			—			73,024			151,525
Other non-interest income		214,322			424,832			20,375			(30,811	)		628,718
		234,826			482,829			20,375			42,213			780,243
Provision for loan losses and others (*2)		499,132			611,391			—			674			1,111,197
General and administrative expenses		(204,144	)		(27,415	)		(3,251	)		(143,810	)		(378,620	)
Operating income	W	1,592,290			804,101			25,484			(34,839	)		2,387,036

(*1) Income related to securities is composed of net gain (loss) on securities measured at FVTPL, securities measured at FVOCI and securities measured at amortized cost.

(*2) Provision for loan losses and others comprises of provision for loan losses, provision for derivative credit risks, gains (losses) on sales of loans, and increase (reversal) of provision.

S-122

Korea Development Bank

Notes to the Interim Separate Financial Statements

June 30, 2024 and 2023 (Unaudited), and December 31, 2023

(In millions of won)

47. Operating Segments, Continued

(4) Geographical revenue information about the Bank’s operating segments for the six-month periods ended June 30, 2024 and 2023 and the geographical non-current asset information as of June 30, 2024 and December 31, 2023 are as follows:

	Revenues (*1)				Non-current assets (*2)
	2024		2023		June 30, 2024		December 31, 2023
Domestic	W	33,157,231		24,838,259		32,906,069		27,708,568
Overseas		2,757,221		2,708,772		125,578		123,367
	W	35,914,452		27,547,031		33,031,647		27,831,935

(*1) Revenues consist of interest income, fees and commission income, dividend income, income related to securities, foreign currency transaction gain, gain on derivatives, other operating income and provision for loan losses.

(*2) Non-current assets consist of investments in subsidiaries and associates, property and equipment, investment property and intangible assets.

48. Risk Management

(1) Introduction

(i) Objectives and principles

The Bank’s risk management aims to maintain financial soundness and effectively manage various risks pertinent to the nature of the Bank’s business. The Bank has set up and fulfilled policies to manage risks timely and effectively. Pursuant to the policies, the Bank’s risks shall be

• managed comprehensively and independently,

• recognized timely, evaluated exactly and managed effectively,

• maintained to the extent that the risks balance with profit,

• diversified appropriately to avoid concentration on specific segments,

• managed to prevent excessive exposure by the setting up and managing of tolerance limits and guidelines.

(ii) Risk management strategy and process

The Bank’s risk management business is separated into two different stages; the ‘metrification stage,’ in which risks are estimated and monitored, and the ‘integration stage,’ in which information gained during the risk management process is integrated and used in management strategies. Risk management is recognized as a key component of the Bank’s management and seeks to change from its previously adaptive and limited role to more leading and comprehensive role.

Furthermore, the Bank focuses on consistent communication among different departments to establish a progressive consensus on risk management.

S-123

Korea Development Bank

Notes to the Interim Separate Financial Statements

June 30, 2024 and 2023 (Unaudited), and December 31, 2023

(In millions of won)

48. Risk Management, Continued

(iii) Risk management governance

Risk Management Committee

The Bank’s Risk Management Committee is the highest decision-making committee on risk management (a subcommittee within the Board of Directors) and is composed of four people, including the President of the committee (an outside director). The Committee performs the function of deciding on major matters related to risk management, such as establishing basic risk management policies, assessing capital adequacy and the management system, and setting exposure limits by country.

The CEO of the Bank and the head of Risk Management Segment

The CEO of the Bank, according to the policies of risk management, performs his or her role to manage and direct risk management in order to sustain efficiency and internal control. The head of the Risk Management Segment is responsible for supervising the overall administration of the Bank’s risk management business and providing risk-related information to members of the board of directors and the Bank’s management.

Risk Management Policy Committee

The Bank’s Risk Management Policy Committee is composed of the leaders of all business segments, and exercises its role to decide important matters relating to the Bank’s portfolio including allocating internal capital limits by segment and setting exposure limits by industry, and to preliminarily review matters for main decision of the Risk Management Committee.

(iv) Performance of risk management committee

The Risk Management Committee performs comprehensive reviews of all the affairs related to risk management and deliberates the decisions of the board of directors. For the year ended June 30, 2024, the key activities of the Risk Management Committee are as follows:

• Major decision

• Risk management plan for 2024

• Contingency funding plan for 2024

• Setting and managing exposure limits by country for 2024

• Major reporting

• Result of ex-post validation of credit rating system and default rates, and verification of risk measurement factors for internal purposes

• Setting management limit of credit portfolios of 2024

• Resolution of Credit Committee for the fourth quarter of 2023

• Allocation of internal capital limits of 2024

• Adjustment of exposure limits by country

• Resolution of Credit Committee for the first quarter of 2024

• Result of integrated crisis analysis for the first half of 2024

S-124

Korea Development Bank

Notes to the Interim Separate Financial Statements

June 30, 2024 and 2023 (Unaudited), and December 31, 2023

(In millions of won)

48. Risk Management, Continued

(v) Improvement of risk management system

For the continuous improvement of risk management, financial soundness and capital adequacy, the Bank performs the following:

• Continuous improvement of Basel

• Improvements in the internal capital adequacy assessment system, in line with the guidelines set by the Financial Supervisory Service (FSS) in 2008, to manage capital adequacy more effectively

• Improvements in the credit assessment system on Low Default Portfolio (LDP)

• Elaboration of risk measuring criteria including credit risk parameters and measurement logics

• Development of the application system for timely calculation of LCR and NSFR

• Rebuilding the Corporate Credit Rating System (approved by Financial Supervisory Services on October 26, 2017)

• Establishment of the system to calculate Basel Interest Rate Risk in the Banking Book (IRRBB) coming to domestic in September 2018

• Establishment of the system to comply with the amended regulation relating to risk-weighted assets under Basel III in December 2020

• Development of system related to Fundamental Review of the Trading Book (FRTB) under Basel III in August 2022

• Development of system related to operational risk under Basel III in September 2022

• Expansion of risk management infrastructure

• Establishment of the RAPM system to reflect risks to the Bank’s business and support decision-making upon management, and application of performance assessment at the branch level since 2010

• Enforcement of risk management related to irregular compound derivatives and validation of the derivative pricing model developed by the Bank’s Front Office

• Establishment of IFRS 9 accounting system to calculate a loan loss allowances under IFRS 9 in March 2017 and, since then, run of IFRS 9 accounting system in January 2018

S-125

Korea Development Bank

Notes to the Interim Separate Financial Statements

June 30, 2024 and 2023 (Unaudited), and December 31, 2023

(In millions of won)

48. Risk Management, Continued

(vi) Risk management reporting and measuring system

The Bank endeavours consistently to objectively and rationally measure and manage all significant risks considering the characteristics of operational areas, assets and risks. In relation to reporting and measurement, the Bank has developed application systems as follows:

Application system	Approach	Completion date	Major function
Corporate Credit Rating System	Logit Model	Oct. 2017	Rebuilding the Corporate Credit Rating System
Market Risk Management System	Murex FRTB	Sep. 2022	Calculation of regulatory capital and internal capital under FRTB SA Standards and stress testing analysis
Interest/Liquidity Risk Management System	In-house	May. 2019	Calculation of interest risk, liquidity risk, etc.
Operational Risk Management System	Standardized Approach	Sep. 2022	Calculation of operation risk, RCSA, KRI and management of loss events, etc.
BIS Capital Ratio Calculation/Credit Risk Measurement System	Fermat RaY	Sep. 2006 Dec. 2013	Calculate equity, credit risk-weighted assets and credit risk, etc.
Loan Loss Allowance Calculation System	IFRS IFRS 9	Jan. 2011 Mar. 2017	Incurred loss model Expected loss model

(vii) Response to Basel

The Korean financial authorities have implemented Basel II since January 2008, and the Standardized Approach and the Foundation Internal Ratings-Based Approach for calculating credit risk are applicable.

In conformity with the implementation roadmap of Basel II, the Bank obtained the approval to use the Foundation Internal Ratings-Based Approach on credit risk from the FSS in July 2008 and has applied the approach since late June 2008. The Bank applies the Standardized Approach on market risks and operational risks.

The Bank completed the Basel III standard risk management system in preparation of the adoption of the Basel III regulations announced on December 1, 2013. Starting from 2013 year-end, the BIS capital adequacy ratio has been measured in accordance to the Basel III regulations.

Responding to the requirements of the financial authorities, the Bank recognizes interest rate risk, liquidity risk, credit bias risk and reputation risk besides Pillar I risks (credit risk, market risk and operational risk). The Bank has actively responded to the Pillar 2 regulation, including additional capital requirements based on comprehensive assessment of risk management levels since 2015. In addition, from the end of 2015, the Bank has applied the uniform standards for the public announcement of financial business for Basel compliance.

S-126

Korea Development Bank

Notes to the Interim Separate Financial Statements

June 30, 2024 and 2023 (Unaudited), and December 31, 2023

(In millions of won)

48. Risk Management, Continued

The Bank completed revised standards such as capital requirements for banks’ investments in funds in 2017, capital requirements for securitization in 2018, and the Standardised Approach for measuring counterparty credit risk (SA-CCR) in 2019.

To comply with the amended regulation relating to risk-weighted assets under Basel III, the Bank completed the consultation and the development of the relevant systems and the amended regulation has been applied since the calculation of the BIS ratio at the end of 2020.

The Bank has completed IT consulting and system development related to Market Risk Regulation (Fundamental Review of the Trading Book , FRTB) and Operational Risk Regulation under Basel III during the second half of 2022.

(viii) Internal capital adequacy assessment process

Internal capital adequacy assessment process is defined as the process that the Bank aggregates significant risks, calculates its internal capital, compares the internal capital with the available capital and assesses its internal capital adequacy. The internal capital adequacy report including the assessment results at the end of the year is prepared and reported to the Risk Management Policy Committee.

• Internal capital adequacy assessment

For the internal capital adequacy assessment, the Bank calculates its aggregated internal capital by evaluating all significant risks and available capital considering the quality and components of capital, and then assesses the internal capital adequacy by comparing the aggregated internal capital with the available capital.

In addition, the Bank conducts periodic stress tests more than once every six months to assess potential weakness in crisis situations and uses its results to assess the internal capital adequacy. The Bank assumes the macroeconomic situation as three stages of ‘normal- pessimistic-serious’ and is preparing countermeasures such as checking the adequacy of capital by each stage.

• Goal setting of internal capital management

The Bank sets up and manages an internal capital limit on an annual basis, through the approval of the Risk Management Committee, to maintain internal capital adequacy by managing internal capital (integrated risks) within the extent of available capital.

The prior year’s internal capital, analysis of domestic and foreign environment changes in the current year, and the direction and size of operations are all reflected in the goal setting of internal capital management to calculate the integrated internal capital scale. Moreover, Bank for International Settlements(BIS) capital adequacy ratio and risk appetite are taken into consideration in the goal setting of internal capital management.

• Allocation of internal capital

The Bank’s Risk Management Committee approves entire internal capital and the Risk Management Policy Committee allocates the capital to each segment and department, considering the extent of possible risk faced and size of operations. The allocated internal capital is monitored regularly and

S-127

Korea Development Bank

Notes to the Interim Separate Financial Statements

June 30, 2024 and 2023 (Unaudited), and December 31, 2023

(In millions of won)

48. Risk Management, Continued

managed using various management methods. The results of monitoring and managing the allocated internal capital are reported to the Risk Management Committee. In case of any material changes in the Bank’s business plan or risk operation strategy, the Bank adjusts the allocations elastically.

• Composition of internal capital

Internal capital comprises all the significant risks of the Bank and is composed of quantifiable and non-quantifiable risks. Quantifiable risks are composed of credit risk, market risk, interest rate risk, operational risk and credit concentration risk, foreign currency settlement risk, and are risks measured quantitatively by applying reasonable methodology using objective data. Non-quantifiable risks are composed of strategy risk, reputation risk, residual risk on asset securitization and furthermore. Non-quantifiable risks are those risks that cannot be measured quantitatively because of lack of data or the absence of appropriate measuring methodologies.

(2) Credit Risk

(i) Concept

Credit risk can be defined as potential loss resulting from the refusal to perform obligations or default of counterparties. More generally, it is used to refer to the possibility of loss from engaged bonds that cannot be redeemed properly or from substitute payments.

(ii) Approach to credit risk management

Summary of credit risk management

The Bank regards credit risk as the most significant risk area in its business operations, and accordingly, closely monitors its credit risk exposure. The Bank manages both credit risks at portfolio level and at individual credit level. At portfolio level, the Bank reduces credit concentration and restructures the portfolio in such a way to maximize profitability considering the risk level. To avoid credit concentration on a particular sector, the Bank manages credit limits by client, group, and industry. The Bank also resets exposure management directives for each industry by conducting an industry credit evaluation twice a year.

At the individual credit level, the relationship manager (RM), the credit officer (CO) and the Credit Review Committee manage each borrowers’ credit risk.

Post management and insolvent borrower management

The Bank monitors the borrower’s credit rating from the date of the loan to the date of the final collection of debt consistently and inspects the borrower’s status regularly and frequently to prevent the generation of new bad debts and to stabilize the number of debt recoveries.

In addition, an early warning system is operated to spot borrowers that are highly likely to be insolvent. The early warning system provides financial information, financial transaction information, public information and market information of the borrower, and such information is used by the RM and the CO to monitor and manage changes in the borrower’s credit rating.

S-128

Korea Development Bank

Notes to the Interim Separate Financial Statements

June 30, 2024 and 2023 (Unaudited), and December 31, 2023

(In millions of won)

48. Risk Management, Continued

A borrower that is likely to be insolvent is classified as an early warning borrower or a precautionary borrower, depending on the level of insolvency risk. The Bank sets up a specific and applicable stabilization plan for such a borrower considering the borrower’s characteristics. Furthermore, sub-standard borrowers are classified as insolvent borrowers, and are managed intensively by the Bank, which takes legal proceedings, disposals or corporate turnaround measures if necessary.

Classification of asset soundness and provision of allowance for loss

Classification of asset soundness is fulfilled by the analysis and assessment of credit risk. The classification is used to provide an appropriate allowance, prevent further occurrences of insolvent assets and promote the normalization of existing insolvent assets to enhance the stabilization of asset operations.

Based on the Financial Supervisory Regulations of the Republic of Korea, the Bank has established standards and guidelines on the classification of asset soundness, according to the Forward-Looking Criteria, which reflects not only the borrower’s past records of repayment but also their future debt repayment capability.

In conformity with these standards, the Bank classifies the soundness of its assets as “normal”, “precautionary”, “substandard”, “doubtful”, or “estimated loss” and differentiates the coverage ratio by the level of classification.

Details of loans by credit rating as of June 30, 2024 and December 31, 2023 are as follows:

< Corporate >

	June 30, 2024
	Carrying amounts		12-month expected credit loss		Lifetime expected credit losses
					Non credit- impaired		Credit- impaired
AAA ~ BBB1	W	173,804,251		154,790,586		19,013,665		—
BBB2 ~ CCC		31,666,182		10,945,518		19,690,700		1,029,964
Below CC		1,187,306		—		779		1,186,527
	W	206,657,739		165,736,104		38,705,144		2,216,491

	December 31, 2023
	Carrying amounts		12-month expected credit loss		Lifetime expected credit losses
					Non credit- impaired		Credit- impaired
AAA ~ BBB1	W	173,049,276		154,937,789		18,111,487		—
BBB2 ~ CCC		28,462,327		10,457,743		16,807,917		1,196,667
Below CC		1,412,185		—		—		1,412,185
	W	202,923,788		165,395,532		34,919,404		2,608,852

S-129

Korea Development Bank

Notes to the Interim Separate Financial Statements

June 30, 2024 and 2023 (Unaudited), and December 31, 2023

(In millions of won)

48. Risk Management, Continued

< Retail >

	June 30, 2024
	Carrying amounts		12-month expected credit loss		Lifetime expected credit losses
					Non credit- impaired		Credit- impaired
Grade 1~ Grade 6	W	123,284		118,637		4,642		5
Grade 7~ Grade 8		1,593		—		1,593		—
Grade 9~ Grade 10		1,448		—		—		1,448
	W	126,325		118,637		6,235		1,453
	December 31, 2023
	Carrying amounts		12-month expected credit loss		Lifetime expected credit losses
					Non credit- impaired		Credit- impaired
Grade 1~ Grade 6	W	140,982		135,315		5,667		—
Grade 7~ Grade 8		1,322		—		1,306		16
Grade 9~ Grade 10		1,230		—		—		1,230
	W	143,534		135,315		6,973		1,246

Details of payment guarantees (including financial guarantees) and unused commitments by credit rating as of June 30, 2024 and December 31, 2023 are as follows:

< Corporate >

	June 30, 2024
	Exposures		12-month expected credit loss		Lifetime expected credit losses
					Non credit- impaired		Credit- impaired
Unused commitments:
AAA ~ BBB1	W	53,898,628		50,234,267		3,664,361		—
BBB2 ~ CCC		5,356,598		2,697,544		2,616,262		42,792
Below CC		—		—		—		—
	W	59,255,226		52,931,811		6,280,623		42,792
Payment guarantees (including financial guarantees):
AAA ~ BBB1	W	8,138,396		7,270,608		867,788		—
BBB2 ~ CCC		10,986,783		5,023,993		5,927,177		35,613
Below CC		57,101		—		—		57,101
	W	19,182,280		12,294,601		6,794,965		92,714

S-130

Korea Development Bank

Notes to the Interim Separate Financial Statements

June 30, 2024 and 2023 (Unaudited), and December 31, 2023

(In millions of won)

48. Risk Management, Continued

	December 31, 2023
	Exposures		12-month expected credit loss		Lifetime expected credit losses
					Non credit- impaired		Credit- impaired
Unused commitments:
AAA ~ BBB1	W	48,742,342		44,927,503		3,814,839		—
BBB2 ~ CCC		6,034,409		2,350,626		3,622,987		60,796
Below CC		—		—		—		—
	W	54,776,751		47,278,129		7,437,826		60,796
Payment guarantees (including financial guarantees):
AAA ~ BBB1	W	7,779,809		6,962,566		817,243		—
BBB2 ~ CCC		10,515,773		4,612,674		5,885,145		17,954
Below CC		68,808		—		86		68,722
	W	18,364,390		11,575,240		6,702,474		86,676

< Retail >

	June 30, 2024
	Exposures		12-month expected credit loss		Lifetime expected credit losses
					Non credit- impaired		Credit- impaired
Unused commitments:
Grade 1~ Grade 6	W	38,323		38,094		229		—
Grade 7~ Grade 8		—		—		—		—
Grade 9~ Grade 10		—		—		—		—
	W	38,323		38,094		229		—

	December 31, 2023
	Exposures		12-month expected credit loss		Lifetime expected credit losses
					Non credit- impaired		Credit- impaired
Unused commitments:
Grade 1~ Grade 6	W	39,887		39,310		577		—
Grade 7~ Grade 8		—		—		—		—
Grade 9~ Grade 10		—		—		—		—
	W	39,887		39,310		577		—

(iii) Measurement methodology of credit risk

Pursuant to Basel III, the Bank selects the measurement methodology of credit risk considering the complexity of measurement, measurement factors, estimating methods and others. Measurement approaches are divided into Standardized Approach and Internal Ratings-Based Approach.

S-131

Korea Development Bank

Notes to the Interim Separate Financial Statements

June 30, 2024 and 2023 (Unaudited), and December 31, 2023

(In millions of won)

48. Risk Management, Continued

Standardized Approach (“SA”)

In the case of the Standardized Approach, the risk weights are applied according to the credit rating assessed by External Credit Assessment Institution (“ECAI”). Risk weights in each credit rating are as follows:

Credit rating	Corporate	Country	Bank
AAA ~ AA-	20.0%	0.0%	20.0%
A+ ~ A-	50.0%	20.0%	30.0%
BBB+ ~ BBB-	75.0%	50.0%	50.0%
BB+ ~ BB-	100.0%	100.0%	100.0%
B+ ~ B-	150.0%	100.0%	100.0%
Below B-	150.0%	150.0%	150.0%
Unrated	100.0% (*)	100.0%	Rating based on due diligence

(*) In case of small and medium-sized business, 85.0% is applied.

The OECD is designated as foreign ECAI and Korea Investrors Service Co., Ltd., NICE Investors Services Co., Ltd. and the Korea Ratings Co., Ltd. are designated as domestic ECAI.

The Bank applies the credit rating based on the corresponding loan and same borrower’s unsecured senior loans. In the case the borrower’s risk weight is higher than the unrated exposure’s risk weight (100%), the higher weight is applied. In the case the borrower has more than one rating, the higher weight of the two lowest weights (Second Best Criteria) is applied.

Internal Ratings-Based Approach (IRB)

To use the Internal Ratings-Based Approach, a bank must be approved by the FSS and should also meet the requirement pre-set by the FSS.

In relation to Basel II that has been adopted domestically as of January 2008, the Bank gained approval from the FSS to use the Foundation Internal Ratings-Based Approach in July 2008. The Bank has calculated credit risk-weighted assets using the approach since late June 2008.

Measurement method of credit risk-weighted asset

The Bank calculates credit risk-weighted assets of corporate exposures and asset securitization exposures using the Foundation Internal Ratings-Based Approach as of June 30, 2024.

S-132

Korea Development Bank

Notes to the Interim Separate Financial Statements

June 30, 2024 and 2023 (Unaudited), and December 31, 2023

(In millions of won)

48. Risk Management, Continued

The Standardized Approach is applied to country exposures, public institution exposures and bank exposures permanently and applied to overseas subsidiary and the Bank’s branch pursuant to prior consultation with the FSS.

<Approved measurement method>
Measurement method		Exposure
Standardized Approach	Permanent SA	— Countries, public institutions, banks, equity
	SA	— Overseas subsidiaries and branches, and other assets, retail, residential mortgage, commercial properties
Foundation Internal Ratings-Based Approach		— Corporate, small and medium enterprises, asset securitization (at each credit level)
Application of IRB by phase		— Special lending, non-residence and others

The mitigated effect of credit risks reflects the related policies which consider eligible collateral and guarantees. The Bank calculates the credit risk-weighted assets using the capital adequacy ratio.

Upon the calculation of credit risk-weighted assets for derivatives, the Bank takes into consideration the set-off effects of transactions under legally enforceable rights to set-off to calculate exposures.

Credit rating model

The results of credit rating are presented as grades through an assessment of the debt repayment capacity that the principal and interest of debt securities or loans are redeemed while complying with contractual redemption schedule.

Using the Bank’s internal credit rating model, the Bank classifies debtors’ credit rating into 14 grades (AAA~D). To distinguish the difference between credits in the same grade, the Bank uses 20 stages as auxiliaries to 14 grades.

The Bank’s regular credit rating process is carried out once a year and in the case of the change of debtor’s credit condition, the credit rating is frequently adjusted as necessary to retain the adequacy of credit rating.

The results of credit rating are applied to various areas such as discrimination of loan processes, loan limit, loan interest rate, post loan management standard process, credit risk measurement, and allowance for loan losses assessment.

Credit rating process control structure

According to the Principle of Checks and Balances, the Bank has established the credit rating process control structure by which the credit rating system operates appropriately.

• Independent assessment of credit rating: The Bank’s business segment (RM) and credit rating assessment segment (Senior Rating Officer) are independently operated.

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Korea Development Bank

Notes to the Interim Separate Financial Statements

June 30, 2024 and 2023 (Unaudited), and December 31, 2023

(In millions of won)

48. Risk Management, Continued

• Independent control of credit rating system: The control of credit rating system including the development of credit rating model is independently implemented by the Bank’s Risk Management Department.

• Independent verification of credit rating system: Credit rating system is independently verified by Risk Validation Team of the Financial Planning Department.

• Internal audit of credit rating process: Credit rating process is regularly audited by the Bank’s internal audit department.

• Role of the Board of Directors and the Bank’s management: Major issues relating to credit process are approved by the Board of Directors and are regularly monitored by the Bank’s top management.

The Bank reviews debt repayability based on a credit analysis when handling loans. Depending on the results, credit loan preservation is executed as necessary using such methods as interest rate preservation due to credit risk.

The Bank evaluates the value of the collateral, performing ability and legal validity of the guarantee at the initial acquisition. The Bank re-evaluates the provided collateral and guarantees regularly for them to be reasonably preserved.

For guarantees, the Bank demands a corresponding written guarantee according to loan handling standards and the guarantor’s credit rating is independently calculated when in conformance with the credit rating endowment method.

The quantification of the extent to which collateral and other credit enhancements mitigate credit risk of impaired financial assets as of June 30, 2024 and December 31, 2023 are as follows:

	June 30, 2024		December 31, 2023
Securities measured at FVOCI	W	74,370		73,063
Loans measured at amortized cost		2,433,839		2,663,591
Other assets		8,163		13,481

S-134

Korea Development Bank

Notes to the Interim Separate Financial Statements

June 30, 2024 and 2023 (Unaudited), and December 31, 2023

(In millions of won)

48. Risk Management, Continued

(iv) Credit exposure

Geographical information of credit exposure as of June 30, 2024 and December 31, 2023 are as follows:

	June 30, 2024
	Korea		Hong Kong		Ireland		Uzbekistan		Brazil		Hungary		UK		USA		Ohers		Total
Due from banks (excluding due from BOK)	W	189,310		1,377,388		—		138,920		131,002		623,825		703,261		3,950,092		1,811,272		8,925,070
Securities measured at FVOCI:
Bonds (excluding government bonds)		8,676,580		234,311		20,742		—		—		—		533,333		6,224,750		3,971,767		19,661,483
Securities measured at amortized cost
Bonds (excluding government bonds)		3,478,744		—		—		—		—		—		—		166,086		—		3,644,830
Loans		162,773,665		1,957,934		2,210,366		447,000		614,544		445,085		1,696,424		9,616,979		47,292,406		227,054,403
Derivative financial assets		150,724		3,677		—		—		—		—		25,984		296		50,154		230,835
Other assets		3,663,840		—		—		—		—		—		—		—		5,935,316		9,599,156
		178,932,863		3,573,310		2,231,108		585,920		745,546		1,068,910		2,959,002		19,958,203		59,060,915		269,115,777
Guarantees (including financial guarantees)		18,711,998		1,312		—		—		—		1,312		—		52,790		414,868		19,182,280
Commitments		48,435,965		387,320		88,882		—		27,784		69,460		619,057		5,383,420		4,309,445		59,321,333
		67,147,963		388,632		88,882		—		27,784		70,772		619,057		5,436,210		4,724,313		78,503,613
	W	246,080,826		3,961,942		2,319,990		585,920		773,330		1,139,682		3,578,059		25,394,413		63,785,228		347,619,390

S-135

Korea Development Bank

Notes to the Interim Separate Financial Statements

June 30, 2024 and 2023 (Unaudited), and December 31, 2023

(In millions of won)

48. Risk Management, Continued

	December 31, 2023
	Korea		Hong Kong		Ireland		Uzbekistan		Brazil		Hungary		UK		USA		Ohers		Total
Due from banks (excluding due from BOK)	W	138,552		1,346,131		—		128,940		104,441		578,910		256,742		2,782,499		1,222,893		6,559,108
Securities measured at FVOCI:
Bonds (excluding government bonds)		10,137,604		227,397		—		—		—		—		354,937		5,573,303		3,305,218		19,598,459
Securities measured at amortized cost:
Bonds (excluding government bonds)		2,653,129		—		—		—		—		—		—		152,683		—		2,805,812
Loans		162,410,485		2,068,402		1,942,429		501,707		826,633		1,038,070		1,541,959		7,283,163		45,660,084		223,272,932
Derivative financial assets		207,334		9,763		—		—		—		—		49,559		813		295,027		562,496
Other assets		3,991,060		—		—		—		—		—		—		—		6,294,514		10,285,574
		179,538,164		3,651,693		1,942,429		630,647		931,074		1,616,980		2,203,197		15,792,461		56,777,736		263,084,381
Guarantees (including financial guarantees)		17,523,463		—		—		—		—		48,997		—		743,963		47,967		18,364,390
Commitments		46,663,341		72,725		114,919		—		25,788		—		313,368		4,155,937		3,470,560		54,816,638
		64,186,804		72,725		114,919		—		25,788		48,997		313,368		4,899,900		3,518,527		73,181,028
	W	243,724,968		3,724,418		2,057,348		630,647		956,862		1,665,977		2,516,565		20,692,361		60,296,263		336,265,409

Industry information of credit exposure as of June 30, 2024 and December 31, 2023 are as follows:

	June 30, 2024
	Manufacturing		Service		Others		Total
Due from banks (excluding due from BOK)	W	—		8,248,976		676,094		8,925,070
Securities measured at FVOCI:
Bonds (excluding government bonds)		3,371,147		12,368,556		3,921,780		19,661,483
Securities measured at amortized cost
Bonds (excluding government bonds)		798,124		2,324,420		522,286		3,644,830
Loans		85,892,426		119,161,436		22,000,541		227,054,403
Derivative financial assets		—		230,835		—		230,835
Other assets		316,807		780,566		8,501,783		9,599,156
		90,378,504		143,114,789		35,622,484		269,115,777
Guarantees (including financial guarantees)		16,553,416		2,529,704		99,160		19,182,280
Commitments		26,279,623		29,791,659		3,250,051		59,321,333
		42,833,039		32,321,363		3,349,211		78,503,613
	W	133,211,543		175,436,152		38,971,695		347,619,390

S-136

Korea Development Bank

Notes to the Interim Separate Financial Statements

June 30, 2024 and 2023 (Unaudited), and December 31, 2023

(In millions of won)

48. Risk Management, Continued

	December 31, 2023
	Manufacturing		Service		Others		Total
Due from banks (excluding due from BOK)	W	—		5,814,916		744,192		6,559,108
Securities measured at FVOCI:
Bonds (excluding government bonds)		3,403,270		12,644,311		3,550,878		19,598,459
Securities measured at amortized cost:
Bonds (excluding government bonds)		369,654		1,673,363		762,795		2,805,812
Loans		86,309,450		116,687,925		20,275,557		223,272,932
Derivative financial assets		—		562,496		—		562,496
Other assets		308,939		615,661		9,360,974		10,285,574
		90,391,313		137,998,672		34,694,396		263,084,381
Guarantees (including financial guarantees)		16,171,129		2,091,952		101,309		18,364,390
Commitments		26,388,986		26,117,146		2,310,506		54,816,638
		42,560,115		28,209,098		2,411,815		73,181,028
	W	132,951,428		166,207,770		37,106,211		336,265,409

Credit exposures of debt securities by credit rating as of June 30, 2024 and December 31, 2023 are as follows:

	June 30, 2024
	Carrying amounts		12-month expected credit loss		Lifetime expected credit losses
					Non credit- impaired		Credit- impaired
AAA ~ BBB1	W	27,548,052		27,051,908		496,144		—
BBB2 ~ CCC		110,882		60,882		50,000		—
Below CC		—		—		—		—
	W	27,658,934		27,112,790		546,144		—

	December 31, 2023
	Carrying amounts		12-month expected credit loss		Lifetime expected credit losses
					Non credit- impaired		Credit- impaired
AAA ~ BBB1	W	26,723,386		26,383,861		339,525		—
BBB2 ~ CCC		112,869		30,000		82,869		—
Below CC		—		—		—		—
	W	26,836,255		26,413,861		422,394		—

(3) Capital management activities

(i) Capital adequacy

The FSS approved the Bank’s use of the Foundation Internal Ratings-Based Approach in July 2008. The Bank has been using the same approach when calculating credit risk-weighted assets since the end of June 2008.

S-137

Korea Development Bank

Notes to the Interim Separate Financial Statements

June 30, 2024 and 2023 (Unaudited), and December 31, 2023

(In millions of won)

48. Risk Management, Continued

The equity capital ratio and equity capital according to the standards of the Bank for International Settlements are calculated for such disclosure. The equity capital ratio and equity capital are calculated on a consolidated basis. In conformity with the Banking Act, which is based on the implementation of Basel III on December 1, 2013, the regulatory capital is divided into the following two categories.

Tier 1 capital

- Common Equity Tier 1

Regulatory capital that represents the most subordinated claim in liquidation of the Bank, takes the first and proportionately greatest share of any losses as they occur, and which principal is never repaid outside of liquidation meets the criteria for classification as common equity, including capital stock, capital surplus, retained earnings and accumulated other comprehensive income as common equity Tier 1.

- Additional Tier 1 capital

Capital stock and capital surplus related to issuance of capital securities that are subordinated, have non-cumulative and conditional dividends or interests, and have no maturity or step-up conditions.

Tier 2 capital (Supplementary Tier 2 capital)

Regulatory capital that fulfills supplementary capital adequacy requirements, and includes subordinated debt with maturities over 5 years and allowance for loan losses in conformity with external regulatory standards and internal standards.

S-138

Korea Development Bank

Notes to the Interim Separate Financial Statements

June 30, 2024 and 2023 (Unaudited), and December 31, 2023

(In millions of won)

48. Risk Management, Continued

The BIS capital adequacy ratio and capital in accordance to Basel III standards as of June 30, 2024 and December 31, 2023 are as follows:

BIS capital adequacy ratio

	June 30, 2024			December 31, 2023
Equity capital based on BIS (A):
Tier 1 capital:
Common Equity Tier 1	W	42,039,774			37,417,288
Additional Tier 1 capital		—			—
		42,039,774			37,417,288
Tier 2 capital		3,601,623			3,854,806
	W	45,641,397			41,272,094
Risk-weighted assets (B):
Credit risk-weighted assets	W	304,848,903			285,177,131
Market risk-weighted assets		2,947,235			2,895,790
Operational risk-weighted assets		12,505,432			13,164,005
	W	320,301,570			301,236,926
BIS capital adequacy ratio (A/B):		14.25	%		13.70	%
Tier 1 capital ratio:		13.13	%		12.42	%
Common Equity Tier 1 ratio		13.13	%		12.42	%
Additional Tier 1 capital ratio		—			—
Tier 2 capital ratio		1.12	%		1.28	%

Equity capital based on BIS

	June 30, 2024			December 31, 2023
Tier 1 capital (A):
Common Equity Tier 1
Capital stock	W	26,131,559			23,926,559
Capital surplus, etc.		1,360,227			1,435,780
Retained earnings		11,349,815			9,900,499
Accumulated other comprehensive income		3,289,937			3,148,442
Common stock deductibles		(91,764	)		(993,991	)
		42,039,774			37,417,288
Tier 2 capital (B):
Allowance for doubtful accounts, etc.		934,366			955,241
Qualified capital securities		2,948,000			3,176,000
Non-qualified capital securities		—			—
Additional stock deductibles		(280,743	)		(276,435	)
		3,601,623			3,854,806
Equity capital (A+B)	W	45,641,397			41,272,094

S-139

Korea Development Bank

Notes to the Interim Separate Financial Statements

June 30, 2024 and 2023 (Unaudited), and December 31, 2023

(In millions of won)

48. Risk Management, Continued

(4) Market risk

(i) Concept

Market risk is defined as the possibility of potential loss resulting from fluctuations in interest rates, foreign exchange rates and the price of stocks and commodities. Trading position is exposed to risks, such as interest rate, stock price, and foreign exchange rate, etc. Non-trading position is mostly exposed to interest rates. Accordingly, the Bank classifies market risks into those exposed from trading position or those exposed from non-trading position.

(ii) Market risks of trading positions

Management method on market risks arising from trading positions

In response to the full implementation of Basel III market risk regulations, the Bank has been calculating and managing market risk capital in accordance with the Standardized Approach under Basel III since January 2023. The Standardized Approach under Basel III measures market risk by three components: sensitivity risk, default risk and residual risk. Sensitivity risk measures the market risk by five risk classes, which are general interest rate, credit spread, equity, foreign exchange and commodity. Default risk quantifies losses in the event of a default that exceeds normal market price fluctuations. Lastly, residual risk quantifies risk that cannot be measured by sensitivity risk and default risk. These components are then simply added together to calculate the total required capital.

The Bank sets total limit of market risk based on annual business plan, risk appetite and others and monitors Market Risk limit of each trading department on a daily basis.

Capital Requirements for Market risk

The Bank’s Capital Requirements for Market risk as of June 30, 2024 and December 31, 2023 are as follows:

	June 30, 2024		December 31, 2023
Sensitivity risk:
General interest rate	W	99,817		112,612
Credit spread		105,582		84,971
Equity		726		815
Foreign exchange (FX)		6,542		8,383
Commodity		558		120
		213,225		206,901
Default risk		4,266		7,696
Residual risk		4,773		3,901
	W	222,264		218,498

S-140

Korea Development Bank

Notes to the Interim Separate Financial Statements

June 30, 2024 and 2023 (Unaudited), and December 31, 2023

(In millions of won)

48. Risk Management, Continued

(iii) Market risks of non-trading positions

Management method on market risks arising from non-trading positions

The most critical market risk that arises in non-trading position is the interest rate risk. Interest rate risk is defined as the likely loss resulting from the unfavorable fluctuation of interest rate in the Bank’s financial condition and is measured by IRRBB (Interest Rate Risk in Banking Book), ΔEVE (change in Economic Value of Equity) and ΔNII (change in Net Interest Income).

ΔEVE represents fluctuations in the economic value of equity capital that may occur due to changes in interest rates affecting the present values of assets, liabilities and off-balance sheet items. ΔNII represents changes in net interest income that may occur over a certain period of time (e.g. one year) in the future due to changes in interest rates.

The Bank’s Risk Management Committee sets and manages interest rate risk limits on a yearly basis and interest rate risk is monthly measured and monitored.

ΔEVE and ΔNII of the Bank’s non-trading positions as of June 30, 2024 and December 31, 2023 are as follows:

	June 30, 2024		December 31, 2023
ΔEVE	W	1,405,114		1,920,912
ΔNII		479,416		583,853

S-141

Korea Development Bank

Notes to the Interim Separate Financial Statements

June 30, 2024 and 2023 (Unaudited), and December 31, 2023

(In millions of won)

48. Risk Management, Continued

(iv) Foreign currency risk

Outstanding balances by currency with significant exposure as of June 30, 2024 and December 31, 2023 are as follows:

	June 30, 2024
	KRW		USD		EUR		JPY		GBP		Others			Total
Financial assets:
Cash and due from banks	W	3,696,968		7,996,448		165,011		103,108		23,127		696,033			12,680,695
Securities measured at FVTPL		18,332,571		643,182		—		2,215		—		20,905			18,998,873
Securities measured at FVOCI		23,482,482		11,200,811		445,215		546,946		—		313,962			35,989,416
Securities measured at amortized cost		8,661,446		166,086		—		—		—		—			8,827,532
Loans measured at FVTPL		439,026		—		—		—		—		—			439,026
Loans measured at amortized cost		135,999,639		58,461,477		3,738,864		2,619,762		1,185,611		1,988,037			203,993,390
Derivative financial assets		7,219,030		2,112,906		44,151		15,595		234,386		51,775			9,677,843
Other financial assets		4,737,432		4,298,557		99,454		64,435		11,670		193,260			9,404,808
		202,568,594		84,879,467		4,492,695		3,352,061		1,454,794		3,263,972			300,011,583
Financial liabilities:
Financial liabilities measured at FVTPL		1,927,516		263,992		—		—		—		—			2,191,508
Deposits		51,565,641		16,720,664		20,592		478,202		109		11,342			68,796,550
Borrowings		4,893,210		23,518,453		237,658		2,077,654		—		1,788,049			32,515,024
Debentures		112,352,432		35,371,538		3,242,811		182,879		97,197		7,511,382			158,758,239
Derivative financial liabilities		7,459,567		2,848,110		71,137		4,376		238,797		51,667			10,673,654
Other financial liabilities		7,221,435		4,589,507		115,796		68,067		9,437		204,852			12,209,094
		185,419,801		83,312,264		3,687,994		2,811,178		345,540		9,567,292			285,144,069
Net financial position	W	17,148,793		1,567,203		804,701		540,883		1,109,254		(6,303,320	)		14,867,514

S-142

Korea Development Bank

Notes to the Interim Separate Financial Statements

June 30, 2024 and 2023 (Unaudited), and December 31, 2023

(In millions of won)

48. Risk Management, Continued

	December 31, 2023
	KRW		USD		EUR		JPY		GBP		Others			Total
Financial assets:
Cash and due from banks	W	2,053,194		6,109,070		54,613		88,293		31,063		323,575			8,659,808
Securities measured at FVTPL		15,369,828		667,073		—		2,116		—		19,539			16,058,556
Securities measured at FVOCI		23,180,190		9,601,225		76,216		499,704		—		530,729			33,888,064
Securities measured at amortized cost		8,430,505		152,683		—		—		—		—			8,583,188
Loans measured at FVTPL		488,432		—		—		—		—		—			488,432
Loans measured at amortized cost		136,780,322		54,107,004		4,261,084		2,095,045		1,045,941		1,692,384			199,981,780
Derivative financial assets		5,079,144		1,962,602		62,952		15,177		216,238		47,212			7,383,325
Other financial assets		5,805,262		3,051,990		52,799		34,950		2,293		1,189,348			10,136,642
		197,186,877		75,651,647		4,507,664		2,735,285		1,295,535		3,802,787			285,179,795
Financial liabilities:
Financial liabilities measured at FVTPL		1,659,485		260,576		—		—		—		—			1,920,061
Deposits		51,240,623		14,219,436		33,889		393,757		185		9,842			65,897,732
Borrowings		4,817,839		19,649,421		272,211		1,610,656		1,481		1,394,021			27,745,629
Debentures		114,993,187		31,115,161		3,206,528		153,390		97,197		7,368,404			156,933,867
Derivative financial liabilities		4,894,577		2,431,566		63,937		7,236		212,812		44,773			7,654,901
Other financial liabilities		6,848,988		3,508,339		56,519		35,828		1,627		1,371,973			11,823,274
		184,454,699		71,184,499		3,633,084		2,200,867		313,302		10,189,013			271,975,464
Net financial position	W	12,732,178		4,467,148		874,580		534,418		982,233		(6,386,226	)		13,204,331

(v) Interest rate risk management

The Bank is closely monitoring the outputs prepared by the industrial working groups which is managing the transition to alternative benchmark rates and the markets related the rates. The outputs include the information published by regulatory authorities related to IBORs. The authorities have made it clear that after the end of 2021, they will no longer persuade or force banks to submit IBORs. Responding the transition, the Bank organized a task force led by the head of the risk management division and the task force has established the LIBOR transition plan that consists of work flows such as alternative interest rate determination, application development, customer communication management, risk management, taxation, finance, legal, and accounting system establishment. The important progress of the plan is reported to the management and may also be reported to the board of directors if necessary. The purpose of the task force is to review where exposure to IBOR occurs within the Bank’s business, and to develop and implement the plan to transit to the alternative benchmark rates. As of June 30, 2024, we have finalized the introduction of conversion and replacement rates for the majority of our U.S. dollar-denominated contracts. However, we aim to complete the conversion of certain unconverted contracts with maturities after June 2024 by the first interest rate rebalancing date that occurs.

(5) Liquidity risk management

(i) Concept

Liquidity risk is defined as the possibility of potential loss due to a temporary shortage in funds caused by a maturity mismatch or an unexpected capital outlay. Liquidity risk soars when funding rates rise, assets are sold below a normal price, or a good investment opportunity is missed.

S-143

Korea Development Bank

Notes to the Interim Separate Financial Statements

June 30, 2024 and 2023 (Unaudited), and December 31, 2023

(In millions of won)

48. Risk Management, Continued

(ii) Approach to liquidity risk management

The Bank manages its liquidity risks as follows:

Allowable limit for liquidity risk

• The allowable limit for liquidity risk sets LCR, NSFR and Mid- to long-term foreign currency fund management ratio

• The management standards with regards to the allowable limit for liquidity risk should be set using separate and stringent set ratios in accordance with the FSS guidelines.

<Measurement Methodology>

• LCR: (High quality liquid assets / Total net cash outflows over the next 30 calendar days) X 100

• NSFR: Available Stable Funding / Required Stable Funding X 100

• Mid- to long-term foreign currency fund management ratio: Foreign currency funding being repaid after 1 year / Foreign currency lending being collected after 1 year X 100

Early warning indicator

To identify prematurely and cope with worsening liquidity risk trends, the Bank has set up 15 indexes such as the “Foreign Exchange Stabilization Bond CDS Premium,” and measures the trend monthly as a means for establishing the allowable liquidity risk limit complementary measures.

Stress-Test analysis and contingency plan

• The Bank evaluates the effects on the liquidity risk and identifies the inherent flaws. In the case where an unpredictable and significant liquidity crisis occurs, the Bank executes risk situation analysis quarterly based on crisis specific to the Bank, market risk and complex emergency, and reports to the Risk Management Committee for the Bank’s solvency securitization.

• The Bank established detailed contingency plan to manage the liquidity risks at every risk situations.

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Korea Development Bank

Notes to the Interim Separate Financial Statements

June 30, 2024 and 2023 (Unaudited), and December 31, 2023

(In millions of won)

48. Risk Management, Continued

(iii) Analysis on remaining contractual maturity of financial instruments

Remaining contractual maturity risks of non-derivative financial instruments including interest payment as of June 30, 2024 and December 31, 2023 are as follows:

	June 30, 2024
	Within 1 month		1~3 months		3~12 months		1~5 years		Over 5 years		Total
Financial assets:
Cash and due from banks	W	9,753,047		448,784		1,740,124		735,012		—		12,676,967
Securities measured at FVTPL		66,616		129,966		3,397,596		193,805		15,200,935		18,988,918
Securities measured at FVOCI		514,743		1,247,833		4,877,685		9,967,150		17,357,097		33,964,508
Securities measured at amortized cost		384,996		847,902		3,231,096		4,342,518		30,000		8,836,512
Loans		18,594,317		19,382,465		70,737,026		74,633,026		19,834,337		203,181,171
Other financial assets		7,447,383		—		—		—		2,068,292		9,515,675
	W	36,761,102		22,056,950		83,983,527		89,871,511		54,490,661		287,163,751
Financial liabilities:
Financial liabilities measured at FVTPL	W	534,019		99,072		780,956		513,470		263,991		2,191,508
Deposits		25,903,173		11,687,422		25,450,769		5,604,792		138,933		68,785,089
Borrowings		6,851,635		8,068,083		10,266,279		6,188,265		873,724		32,247,986
Debentures		6,227,134		12,520,506		48,397,430		84,970,196		7,386,736		159,502,002
Other financial liabilities		8,618,843		2,857,246		—		—		6,009,962		17,486,051
	W	48,134,804		35,232,329		84,895,434		97,276,723		14,673,346		280,212,636

	December 31, 2023
	Within 1 month		1~3 months		3~12 months		1~5 years		Over 5 years		Total
Financial assets:
Cash and due from banks	W	6,496,029		435,423		1,052,742		675,016		—		8,659,210
Securities measured at FVTPL		148,946		183,900		1,240,381		357,045		14,108,295		16,038,567
Securities measured at FVOCI		993,549		818,347		4,937,042		9,576,173		15,126,966		31,452,077
Securities measured at amortized cost		329,935		648,441		3,341,184		4,242,848		30,000		8,592,408
Loans		14,612,469		18,283,041		70,764,523		77,534,031		18,136,771		199,330,835
Other financial assets		8,432,805		—		—		—		1,773,897		10,206,702
	W	31,013,733		20,369,152		81,335,872		92,385,113		49,175,929		274,279,799

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Korea Development Bank

Notes to the Interim Separate Financial Statements

June 30, 2024 and 2023 (Unaudited), and December 31, 2023

(In millions of won)

48. Risk Management, Continued

	December 31, 2023
	Within 1 month		1~3 months		3~12 months		1~5 years		Over 5 years		Total
Financial liabilities:
Financial liabilities measured at FVTPL	W	472,317		156,783		447,317		583,068		260,576		1,920,061
Deposits		27,470,945		11,085,432		20,825,008		6,400,963		128,990		65,911,338
Borrowings		4,644,515		5,118,500		11,503,777		5,421,288		840,401		27,528,481
Debentures		5,640,391		8,903,959		48,962,250		86,164,795		7,795,760		157,467,155
Other financial liabilities		8,439,585		2,664,173		—		—		5,703,816		16,807,574
	W	46,667,753		27,928,847		81,738,352		98,570,114		14,729,543		269,634,609

Remaining contractual maturity risks of derivative financial instruments as of June 30, 2024 and December 31, 2023 are as follows:

Net settlement of derivative financial instruments

	June 30, 2024
	Within 1 month			1~3 months			3~12 months			1~5 years			Over 5 years		Total
Trading purpose derivatives:
Interest rate	W	(47,196	)		(85,271	)		(103,002	)		(257,873	)		993,784		500,442
Hedging purpose derivatives:
Interest rate		26,514			252,306			697,265			2,003,114			1,268,405		4,247,604
	W	(20,682	)		167,035			594,263			1,745,241			2,262,189		4,748,046

	December 31, 2023
	Within 1 month			1~3 months			3~12 months			1~5 years			Over 5 years		Total
Trading purpose derivatives:
Interest rate	W	(2,033	)		(28,349	)		(275,111	)		(366,676	)		826,714		154,545
Stock		(1	)		—			—			—			—		(1	)
Hedging purpose derivatives:
Interest rate		43,722			144,662			543,394			1,595,618			1,336,540		3,663,936
	W	41,688			116,313			268,283			1,228,942			2,163,254		3,818,480

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Korea Development Bank

Notes to the Interim Separate Financial Statements

June 30, 2024 and 2023 (Unaudited), and December 31, 2023

(In millions of won)

48. Risk Management, Continued

Gross settlement of derivative financial instruments

	June 30, 2024
	Within 1 month		1~3 months		3~12 months		1~5 years		Over 5 years		Total
Trading purpose derivatives:
Currency
Inflow	W	69,440,039		28,253,853		73,665,441		109,008,273		7,796,267		288,163,873
Outflow		69,355,958		28,171,561		73,388,416		108,247,154		7,853,168		287,016,257
Hedging purpose derivatives:
Currency
Inflow		1,236,319		2,306,006		5,407,671		16,850,836		4,479,428		30,280,260
Outflow		1,240,333		2,289,384		5,725,426		18,088,439		4,313,461		31,657,043
Total inflow	W	70,676,358		30,559,859		79,073,112		125,859,109		12,275,695		318,444,133
Total outflow	W	70,596,291		30,460,945		79,113,842		126,335,593		12,166,629		318,673,300

	December 31, 2023
	Within 1 month		1~3 months		3~12 months		1~5 years		Over 5 years		Total
Trading purpose derivatives:
Currency
Inflow	W	45,348,884		27,478,545		57,355,351		87,467,138		5,566,523		223,216,441
Outflow		45,470,176		27,330,617		56,975,759		86,723,581		5,583,057		222,083,190
Hedging purpose derivatives:
Currency
Inflow		1,581,339		714,124		5,614,897		17,506,798		4,659,118		30,076,276
Outflow		1,828,956		1,245,814		5,799,883		17,135,514		4,444,721		30,454,888
Total inflow	W	46,930,223		28,192,669		62,970,248		104,973,936		10,225,641		253,292,717
Total outflow	W	47,299,132		28,576,431		62,775,642		103,859,095		10,027,778		252,538,078

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Korea Development Bank

Notes to the Interim Separate Financial Statements

June 30, 2024 and 2023 (Unaudited), and December 31, 2023

(In millions of won)

48. Risk Management, Continued

Remaining contractual maturity risks of guarantees and commitments as of June 30, 2024 and December 31, 2023 are as follows:

	June 30, 2024
	Within 1 month		1~3 months		3~12 months		1~5 years		Over 5 years		Total
Guarantees	W	2,170,687		2,441,719		4,113,629		9,835,573		620,672		19,182,280
Commitments		316,075		221,264		1,526,558		2,316,687		56,961,344		61,341,928
	W	2,486,762		2,662,983		5,640,187		12,152,260		57,582,016		80,524,208
	December 31, 2023
	Within 1 month		1~3 months		3~12 months		1~5 years		Over 5 years		Total
Guarantees	W	1,210,778		2,221,822		5,049,000		9,253,213		629,577		18,364,390
Commitments		282,001		103,672		1,586,296		1,763,658		53,127,394		56,863,021
	W	1,492,779		2,325,494		6,635,296		11,016,871		53,756,971		75,227,411

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THE REPUBLIC OF KOREA

Land and History

Political History

On December 3, 2024, President Yoon declared martial law, citing an urgent need to protect the country. The National Assembly swiftly voted to rescind the declaration of martial law, which led to President Yoon’s revocation of the decree just hours later. On December 14, 2024, the National Assembly voted in favor of President Yoon’s impeachment, for his purported acts of insurrection, among others, which resulted in an immediate suspension of his presidential powers. The Constitutional Court has commenced formal impeachment trial proceedings in order to determine whether President Yoon’s declaration of martial law constitutes an impeachable action, which determination must be made within 180 days of receiving the impeachment resolution from the National Assembly. If the Court upholds the impeachment, President Yoon would be removed from office immediately and a presidential election would be required to be held within 60 days of such judgment. On January 15, 2025, the Corruption Investigation Office for High-Ranking Officials arrested President Yoon in order to conduct questioning related to his declaration of martial law. These events have prompted numerous ongoing public protests, both against and in support of President Yoon. Although the Government believes that the Korean economy and society are resilient enough to withstand any temporary negative impact of such political developments or any potential ensuing societal unrest, there is no assurance that such developments would not have a material adverse effect on the Korean economy and public finances.

The Economy

Gross Domestic Product

Based on preliminary data, GDP growth in the first nine months of 2024 was 1.5% at chained 2020 year prices, primarily due to a 6.8% increase in exports of goods and services and a 1.7% increase in aggregate private and general government consumption expenditures, the effects of which were offset in part by a 4.4% increase in imports of goods and services and a 1.2% decrease in gross domestic fixed capital formation, each compared with the corresponding period of 2023.

Principal Sectors of the Economy

Prices, Wages and Employment

Based on preliminary data, the inflation rate was 2.6% and the unemployment rate was 2.8% in the first nine months of 2024.

The Financial System

Securities Markets

The Korea Composite Stock Price Index was 2,797.82 on June 28, 2024, 2,770.69 on July 31, 2024, 2,674.31 on August 30, 2024, 2,593.27 on September 30, 2024, 2,556.15 on October 31, 2024, 2,455.91 on November 29, 2024, 2,399.49 on December 30, 2024 and 2,518.03 on January 21, 2025.

Monetary Policy

Interest Rates

The Bank of Korea lowered its policy rate from 3.50% to 3.25% on October 11, 2024 and to 3.00% on November 28, 2024.

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Foreign Exchange

The market average exchange rate between the Won and the U.S. Dollar (in Won per one U.S. Dollar) as announced by the Seoul Money Brokerage Service Ltd. was Won 1,389.2 to US$1.00 on June 28, 2024, Won 1,384.6 to US$1.00 on July 31, 2024, Won 1,335.3 to US$1.00 on August 30, 2024, Won 1,319.6 to US$1.00 on September 30, 2024, Won 1,383.3 to US$1.00 on October 31, 2024, Won 1,394.7 to US$1.00 on November 29, 2024, Won 1,470.0 to US$1.00 on December 31, 2024 and Won 1,453.0 to US$1.00 on January 21, 2025.

Balance of Payments and Foreign Trade

Balance of Payments

Based on preliminary data, the Republic’s current account surplus in the first nine months of 2024 increased to US$64.6 billion from the current account surplus of US$16.8 billion in the corresponding period of 2023, primarily due to an increase in surplus from the goods account and a decrease in deficit from the services account, the effects of which were offset in part by a decrease in surplus from the income account.

Trade Balance

Based on preliminary data, the Republic recorded a trade surplus of US$36.8 billion in the first nine months of 2024. Exports increased by 9.6% to US$508.7 billion in the first nine months of 2024 from US$464.1 billion in the corresponding period of 2023, primarily due to an improvement in the domestic economic conditions of the Republic’s major trading partners. Imports decreased by 2.5% to US$471.9 billion in the first nine months of 2024 from US$484.0 billion in the corresponding period of 2023, primarily due to a decrease in energy and commodity prices, which also led to decreased unit prices of other major raw materials.

Foreign Currency Reserves

The amount of the Government’s foreign currency reserves was US$415.6 billion as of December 31, 2024.

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DESCRIPTION OF THE NOTES

The following is a description of some of the terms of the Notes we are offering. Since it is only a summary, we urge you to read the fiscal agency agreement described below and the forms of global note before deciding whether to invest in the Notes. We have filed a copy of these documents with the United States Securities and Exchange Commission as exhibits to the registration statement no. 333-280021.

The general terms of our Notes are described in the accompanying prospectus. The description in this prospectus supplement further adds to that description or, to the extent inconsistent with that description, replaces it.

The Notes

We are offering US$900,000,000 aggregate principal amount of 4.625% notes due February 3, 2028 (the “2028 Notes”), US$1,200,000,000 aggregate principal amount of 4.875% notes due February 3, 2030 (the “2030 Notes”) and US$900,000,000 aggregate principal amount of floating rate notes due on the Floating Rate Notes Interest Payment Date (as defined below) falling on or nearest to February 3, 2030 (the “Floating Rate Notes,” and together with the 2028 Notes and the 2030 Notes, the “Notes”).

Governed by Fiscal Agency Agreement

We will issue the Notes under the fiscal agency agreement, dated as of February 15, 1991, as amended and supplemented from time to time, between us and The Bank of New York (now The Bank of New York Mellon), as fiscal agent (the “Fiscal Agency Agreement”). The fiscal agent will maintain a register for the Notes.

Payment of Principal and Interest

Fixed Rate Notes

The 2028 Notes are initially limited to US$900,000,000 aggregate principal amount and the 2030 Notes (together with the 2028 Notes, the “Fixed Rate Notes”) are initially limited to US$1,200,000,000 aggregate principal amount. The 2028 Notes will mature on February 3, 2028 (the “2028 Notes Maturity Date”) and the 2030 Notes will mature on February 3, 2030 (the “2030 Notes Maturity Date”, and together with the 2028 Notes Maturity Date, the “Fixed Rate Notes Maturity Dates”). The 2028 Notes will bear interest at the rate of 4.625% per annum and the 2030 Notes will bear interest at the rate of 4.875% per annum, in each case payable semi-annually in arrear on February 3 and August 3 of each year (each, a “Fixed Rate Notes Interest Payment Date”), beginning on August 3, 2025. Interest on the Fixed Rate Notes will accrue from February 3, 2025. If any Fixed Rate Notes Interest Payment Date or any Fixed Rate Notes Maturity Date shall be a day on which banking institutions in The City of New York or Seoul are authorized or obligated by law to close, then such payment will not be made on such date but will be made on the next succeeding day which is not a day on which banking institutions in The City of New York or Seoul are authorized or obligated by law to close, with the same force and effect as if made on the date for such payment, and no interest shall be payable in respect of any such delay. We will pay interest to the person who is registered as the owner of a 2028 Note or 2030 Note, as applicable, at the close of business on the fifteenth day (whether or not a business day) preceding the related Fixed Rate Notes Interest Payment Date. Interest on the Fixed Rate Notes will be computed on the basis of a 360-day year consisting of twelve 30-day months. We will make principal and interest payments on the Fixed Rate Notes in immediately available funds in U.S. dollars.

Floating Rate Notes

The Floating Rate Notes are initially limited to US$ aggregate principal amount. The Floating Rate Notes will mature on the Floating Rate Notes Interest Payment Date (as defined below) on or nearest to February 3, 2030 (the “Floating Rate Notes Maturity Date”). The Floating Rate Notes will bear interest at a rate equal to Compounded Daily SOFR (as defined herein) plus 0.760% per annum, payable quarterly in arrear on

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February 3, May 3, August 3 and November 3 of each year, subject in each case to adjustment in accordance with the Modified Following Business Day Convention, as explained herein (each, a “Floating Rate Notes Interest Payment Date”), beginning on the Floating Rate Notes Interest Payment Date falling on or nearest to May 3, 2025, and if redeemed early, the date of such redemption. In no event shall the rate of interest for the Floating Rate Notes be less than 0% for any Floating Rate Notes Interest Period (as defined herein).

Interest on the Floating Rate Notes will accrue from (and including) February 3, 2025. If any Floating Rate Notes Interest Payment Date or the Floating Rate Notes Maturity Date falls on a day that is not a business day (as defined below), that Floating Rate Notes Interest Payment Date or the Floating Rate Notes Maturity Date will be adjusted in accordance with the Modified Following Business Day Convention. The term “Modified Following Business Day Convention” means that the relevant date shall be postponed to the first following day that is a business day (and interest will continue to accrue to but excluding such following date that is a business day) unless that day falls in the next calendar month in which case that date will be the first preceding day that is a business day and interest shall accrue to but excluding such preceding business day. The term “business day” as used herein means a U.S. Government Securities Business Day (as defined herein) and a day other than a Saturday, a Sunday or any other day on which banking institutions in Seoul are authorized or required by law or executive order to remain closed.

We will pay interest to the person who is registered as the owner of a Floating Rate Note at the close of business on the fifteenth day (whether or not a business day) preceding the related Floating Rate Notes Interest Payment Date. Interest on the Floating Rate Notes will be computed on the basis of the actual number of days in the applicable Floating Rate Notes Interest Period (as defined herein) divided by 360. We will make principal and interest payments on the Floating Rate Notes in immediately available funds in U.S. dollars.

1. Definition of Compounded Daily SOFR

“Compounded Daily SOFR” means the rate of return of a daily compound interest investment (with the daily secured overnight financing rate as the reference rate for the calculation of interest) and will be determined by the Calculation Agent (as defined herein) on the Floating Rate Notes Interest Determination Date in accordance with the following formula, and the resulting percentage will be rounded, if necessary, to the nearest one hundred-thousandth of a percentage point, 0.000005 being rounded upwards:

where:

“d” means the number of calendar days in the Floating Rate Notes Interest Period;

“d₀” for any Floating Rate Notes Interest Period, means the number of U.S. Government Securities Business Days (as defined herein) in the Floating Rate Notes Interest Period;

“i” is a series of whole numbers from one to d₀, each representing the relevant U.S. Government Securities Business Days in chronological order from, and including, the first U.S. Government Securities Business Day in the Floating Rate Notes Interest Period;

“n_i” for any U.S. Government Securities Business Day “i” means the number of calendar days from, and including, such U.S. Government Securities Business Day “i” up to, but excluding, the following U.S. Government Securities Business Day;

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“SOFR_i-5USBD” means the SOFR Reference Rate for the U.S. Government Securities Business Day (being a U.S. Government Securities Business Day falling in the Floating Rate Notes Interest Period) falling five U.S. Government Securities Business Days prior to the relevant U.S. Government Securities Business Day “i”; and

“SOFR Reference Rate” means, in respect of any U.S. Government Securities Business Day, a reference rate equal to the daily secured overnight financing rate (“SOFR”) for such U.S. Government Securities Business Day as provided by the Federal Reserve Bank of New York, as the administrator of such rate (or any successor administrator of such rate) on the website of the Federal Reserve Bank of New York currently at http://www.newyorkfed.org, or any successor website of the Federal Reserve Bank of New York (the “New York Fed’s Website”) in each case, on or about 5:00 p.m., New York City time, on the U.S. Government Securities Business Day immediately following such U.S. Government Securities Business Day (the “SOFR Determination Time”).

“Floating Rate Notes Interest Determination Date” means the date five U.S. Government Securities Business Days before each Floating Rate Notes Interest Payment Date;

“Floating Rate Notes Interest Period” refers to the period from (and including) February 3, 2025 to (but excluding) the first Floating Rate Notes Interest Payment Date and each successive period from (and including) a Floating Rate Notes Interest Payment Date to (but excluding) the next Floating Rate Notes Interest Payment Date; and

“U.S. Government Securities Business Day” means any day except for a Saturday, a Sunday or a day on which the Securities Industry and Financial Markets Association recommends that the fixed income departments of its members be closed for the entire day for purposes of trading in U.S. government securities.

The Bank of New York Mellon will serve as the “Calculation Agent” for the Floating Rate Notes. In the absence of manifest error, the Calculation Agent’s determination of Compounded Daily SOFR and its calculation of the applicable interest rate for each Floating Rate Notes Interest Period will be final and binding. The Calculation Agent will make available the interest rates for current and preceding Floating Rate Notes Interest Periods by delivery of such notice through such medium as is available to participants in DTC, Euroclear and Clearstream, or any successor thereof, and in accordance with such applicable rules and procedures as long as the Floating Rate Notes are held in global form. In the event that the Floating Rate Notes are held in certificated form, the interest rates for current and preceding Floating Rate Notes Interest Periods will be published in the manner described below under “—Notices”. We have the right to replace the Calculation Agent with another leading commercial bank or investment bank in New York or London. If the appointed office of the Calculation Agent is unable or unwilling to continue to act as the Calculation Agent or fails to determine the interest rate for any Floating Rate Notes Interest Period, we have a duty to appoint such other leading commercial bank or investment bank in New York or London.

2. Benchmark Transition

Notwithstanding anything to the contrary in the documentation relating to the Floating Rate Notes, if the Calculation Agent is notified by the Determination Agent on or prior to the relevant Reference Time that a Benchmark Transition Event and its related Benchmark Replacement Date (each as defined herein) have occurred with respect to the then-current Benchmark, then the Benchmark Replacement will replace the then-current Benchmark for all purposes relating to the Floating Rate Notes in respect of all determinations on such date and for all determinations on all subsequent dates.

In connection with the implementation of a Benchmark Replacement, the Determination Agent will have the right to make Benchmark Replacement Conforming Changes (as defined herein) from time to time.

Any determination, decision or election that may be made by the Determination Agent or us pursuant to the Benchmark Replacement provisions described herein, including any determination with respect to tenor, rate or

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adjustment or of the occurrence or non-occurrence of an event, circumstance or date and any decision to take or refrain from taking any action or any selection:

a. will be conclusive and binding absent manifest error, may be made in the Determination Agent’s sole discretion, and, notwithstanding anything to the contrary herein relating to the Floating Rate Notes;

b. if made by us, will be made in our sole discretion;

c. if made by the Determination Agent, will be made after consultation with us, and the Determination Agent will not make any such determination, decision or election to which we object; and

d. shall become effective without consent from any other party.

Any determination, decision or election pursuant to the Benchmark Replacement provisions not made by the Determination Agent will be made by us on the basis as described above. The Calculation Agent shall have no liability for not making any such determination, decision or election. In addition, we may designate an entity (which may be our affiliate) to make any determination, decision or election that we have the right to make in connection with the benchmark replacement provisions set forth herein.

None of the fiscal agent, paying agent or calculation agent shall be under any obligation (i) to monitor, determine or verify the unavailability or cessation of SOFR or Compounded Daily SOFR, or whether or when there has occurred, or to give notice to any other transaction party of the occurrence of, any Benchmark Transition Event or related Benchmark Replacement Date, (ii) to select, determine or designate any Benchmark Replacement, or other successor or replacement benchmark index, or whether any conditions to the designation of such a rate or index have been satisfied, (iii) to select, determine or designate any Benchmark Replacement Adjustment, or other modifier to any replacement or successor index, or (iv) to determine whether or what Benchmark Replacement Conforming Changes are necessary or advisable, if any, in connection with any of the foregoing, including, but not limited to, adjustments as to any alternative spread thereon, the business day convention, interest determination dates or any other relevant methodology applicable to such substitute or successor benchmark. In connection with the foregoing, each of the fiscal agent, paying agent and calculation agent shall be entitled to conclusively rely on any determinations made by us or the Determination Agent without independent investigation, and none of the fiscal agent, paying agent or the calculation agent will have any liability for actions taken at our direction in connection therewith. None of the fiscal agent, paying agent or calculation agent shall be liable for any inability, failure or delay on its part to perform any of its duties as a result of the unavailability of SOFR, Compounded Daily SOFR or other applicable Benchmark Replacement, including as a result of any failure, inability, delay, error or inaccuracy on the part of any other transaction party in providing any direction, instruction, notice or information required or contemplated by the terms hereof and reasonably required for the performance of such duties. None of the fiscal agent, paying agent or calculation agent shall be responsible or liable for our actions or omissions or for those of the Determination Agent, or for any failure or delay in the performance by us or the Determination Agent, nor shall any of the fiscal agent, paying agent or calculation agent be under any obligation to oversee or monitor our performance or that of the Determination Agent.

For purposes of these Benchmark Replacement provisions:

“Benchmark” means, initially, Compounded Daily SOFR, as such term is defined above; provided that if the Determination Agent determines on or prior to the Reference Time that a Benchmark Transition Event and its related Benchmark Replacement Date have occurred with respect to Compounded Daily SOFR (including the daily published component used in the calculation thereof) or the then-current Benchmark, then “Benchmark” means the applicable Benchmark Replacement;

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“Benchmark Replacement” means the first alternative set forth in the order below that can be determined by us or the Determination Agent as of the Benchmark Replacement Date:

I. the sum of: (a) the alternate rate of interest that has been selected or recommended by the Relevant Governmental Body (as defined herein) as the replacement for the then-current Benchmark and (b) the Benchmark Replacement Adjustment (as defined herein);

II. the sum of: (a) the ISDA Fallback Rate (as defined herein) and (b) the Benchmark Replacement Adjustment; or

III. the sum of: (a) the alternate rate of interest that has been selected by us or the Determination Agent as the replacement for the then-current Benchmark giving due consideration to any industry-accepted rate of interest as a replacement for the then-current Benchmark for U.S. dollar-denominated floating rate notes at such time and (b) the Benchmark Replacement Adjustment;

“Benchmark Replacement Adjustment” means the first alternative set forth in the order below that can be determined by us or the Determination Agent as of the Benchmark Replacement Date:

I. the spread adjustment (which may be a positive or negative value or zero), or method for calculating or determining such spread adjustment that has been selected or recommended by the Relevant Governmental Body for the applicable Unadjusted Benchmark Replacement (as defined herein);

II. if the applicable Unadjusted Benchmark Replacement is equivalent to the ISDA Fallback Rate, then the ISDA Fallback Adjustment (as defined herein); and

III. the spread adjustment (which may be a positive or negative value or zero) that has been selected by us or the Determination Agent giving due consideration to any industry-accepted spread adjustment, or method for calculating or determining such spread adjustment, for the replacement of the then-current Benchmark with the applicable Unadjusted Benchmark Replacement for U.S. dollar-denominated floating rate notes at such time;

“Benchmark Replacement Conforming Changes” means, with respect to any Benchmark Replacement, any technical, administrative or operational changes (including changes to the definitions or interpretations of interest period, the timing and frequency of determining rates and making payments of interest, the rounding of amounts or tenors, and other administrative matters) that the Determination Agent decides may be appropriate to reflect the adoption of such Benchmark Replacement in a manner substantially consistent with market practice (or, if the Determination Agent decides that adoption of any portion of such market practice is not administratively feasible or if the Determination Agent determines that no market practice for use of the Benchmark Replacement exists, in such other manner as the Determination Agent determines is reasonably practicable);

“Benchmark Replacement Date” means the earliest to occur of the following events with respect to the then-current Benchmark (including the daily published component used in the calculation thereof):

I. in the case of clause (I) or (II) of the definition of “Benchmark Transition Event,” the later of (a) the date of the public statement or publication of information referenced therein and (b) the date on which the administrator of the Benchmark permanently or indefinitely ceases to provide the Benchmark (or such component); or

II. in the case of clause (III) of the definition of “Benchmark Transition Event,” the date of the public statement or publication of information referenced therein.

For the avoidance of doubt, if the event giving rise to the Benchmark Replacement Date occurs on the same day as, but earlier than, the Reference Time in respect of any determination, the Benchmark Replacement Date will be deemed to have occurred prior to the Reference Time for such determination.

For the avoidance of doubt, for purposes of the definitions of Benchmark Replacement Date and Benchmark Transition Event, references to Benchmark also include any reference rate underlying such Benchmark;

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“Benchmark Transition Event” means the occurrence of one or more of the following events with respect to the then-current Benchmark (including the daily published component used in the calculation thereof):

I. a public statement or publication of information by or on behalf of the administrator of the Benchmark (or such component) announcing that such administrator has ceased or will cease to provide the Benchmark (or such component), permanently or indefinitely, provided that, at the time of such statement or publication, there is no successor administrator that will continue to provide the Benchmark (or such component);

II. a public statement or publication of information by the regulatory supervisor for the administrator of the Benchmark (or such component), the central bank for the currency of the Benchmark (or such component), an insolvency official with jurisdiction over the administrator for the Benchmark (or such component), a resolution authority with jurisdiction over the administrator for the Benchmark or a court or an entity with similar insolvency or resolution authority over the administrator for the Benchmark (or such component), which states that the administrator of the Benchmark (or such component) has ceased or will cease to provide the Benchmark (or such component) permanently or indefinitely, provided that, at the time of such statement or publication, there is no successor administrator that will continue to provide the Benchmark (or such component); or

III. a public statement or publication of information by the regulatory supervisor for the administrator of the Benchmark announcing that the Benchmark is no longer representative;

“Determination Agent” means an independent bank of international repute selected by and acting as our agent for the purposes of the conditions of the Floating Rate Notes and notified to the Fiscal Agent and Calculation Agent in writing. Neither the Calculation Agent nor the Fiscal Agent shall be responsible for the calculations made by, or the actions or omissions of, the Determination Agent and shall not be liable for any losses caused thereby.

“ISDA Definitions” means the 2006 ISDA Definitions published by the International Swaps and Derivatives Association, Inc. or any successor thereto, as amended or supplemented from time to time, or any successor definitional booklet for interest rate derivatives published from time to time;

“ISDA Fallback Adjustment” means the spread adjustment (which may be a positive or negative value or zero) that would apply for derivatives transactions referencing the ISDA Definitions to be determined upon the occurrence of an index cessation event with respect to the Benchmark for the applicable tenor;

“ISDA Fallback Rate” means the rate that would apply for derivatives transactions referencing the ISDA Definitions to be effective upon the occurrence of an index cessation date with respect to the Benchmark for the applicable tenor excluding the applicable ISDA Fallback Adjustment;

“Reference Time” with respect to any determination of the Benchmark means (1) if the Benchmark is Compounded Daily SOFR, the SOFR Determination Time, as such time is defined herein, and (2) if the Benchmark is not Compounded Daily SOFR, the time determined by the Determination Agent in accordance with the Benchmark Replacement Conforming Changes;

“Relevant Governmental Body” means the Federal Reserve Board and/or the Federal Reserve Bank of New York, or a committee officially endorsed or convened by the Federal Reserve Board and/or the Federal Reserve Bank of New York or any successor thereto; and

“Unadjusted Benchmark Replacement” means the Benchmark Replacement excluding the Benchmark Replacement Adjustment.

The payment of interest and the repayment of principal on the Notes will not be guaranteed by the Government.

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Denomination

The Notes will be issued in minimum denominations of US$200,000 principal amount and integral multiples of US$1,000 in excess thereof.

Redemption

We may not redeem the Notes prior to maturity. At maturity, we will redeem the Notes at par.

Form and Registration

We will issue each series of the Notes in the form of one or more fully registered global notes, registered in the name of a nominee of and deposited with the custodian for DTC. Except as described in the accompanying prospectus under “Description of the Securities—Description of Debt Securities—Global Securities,” the global notes will not be exchangeable for Notes in definitive registered form, and will not be issued in definitive registered form. Financial institutions, acting as direct and indirect participants in DTC, will represent your beneficial interests in the global notes. These financial institutions will record the ownership and transfer of your beneficial interest through book-entry accounts. You may hold your beneficial interests in the Notes through Euroclear or Clearstream if you are a participant in such systems, or indirectly through organizations that are participants in such systems. Any secondary market trading of book-entry interests in the Notes will take place through DTC participants, including Euroclear and Clearstream. See “Clearance and Settlement—Transfers Within and Between DTC, Euroclear and Clearstream.”

General

The fiscal agent will not charge you any fees for the Notes, other than reasonable fees for the replacement of lost, stolen, mutilated or destroyed Notes. However, you may incur fees for the maintenance and operation of the book-entry accounts with the clearing systems in which your beneficial interests are held.

For so long as the Notes are listed on the SGX-ST and the rules of the SGX-ST so require, in the event that any of the global notes are exchanged for Notes in definitive registered form, we will appoint and maintain a paying agent in Singapore, where the certificates representing the Notes may be presented or surrendered for payment or redemption. In addition, in the event that any of the global notes are exchanged for Notes in definitive registered form, an announcement of such exchange will be made through the SGX-ST by or on behalf of us. Such announcement will include all material information with respect to the delivery of the certificates representing the Notes, including details of the paying agent in Singapore.

Further Issues

We may from time to time, without the consent of the holders of the Notes, create and issue additional debt securities with the same terms and conditions as either series of the Notes in all respects so that such further issue shall be consolidated and form a single series with the relevant series of the Notes. We will not issue any such additional debt securities unless such additional securities have less than a de minimis amount of original issue discount or such issuance would otherwise constitute a “qualified reopening” for U.S. federal income tax purposes.

Notices

All notices regarding the Notes will be published by us in London in the Financial Times and in New York in The Wall Street Journal (U.S. Edition). If we cannot, for any reason, publish notice in any of those newspapers, we will choose an appropriate alternate English language newspaper of general circulation, and notice in that newspaper will be considered valid notice. Notice will be considered made on the first date of its publication.

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CLEARANCE AND SETTLEMENT

We have obtained the information in this section from sources we believe to be reliable, including DTC, Euroclear and Clearstream. We accept responsibility only for accurately extracting information from such sources. DTC, Euroclear and Clearstream are under no obligation to perform or continue to perform the procedures described below, and they may modify or discontinue them at any time. Neither we nor the registrar will be responsible for DTC’s, Euroclear’s or Clearstream’s performance of their obligations under their rules and procedures. Nor will we or the registrar be responsible for the performance by direct or indirect participants of their obligations under their rules and procedures.

Introduction

The Depository Trust Company

DTC is:

• a limited-purpose trust company organized under the New York Banking Law;

• a “banking organization” under the New York Banking Law;

• a member of the Federal Reserve System;

• a “clearing corporation” under the New York Uniform Commercial Code; and

• a “clearing agency” registered under Section 17A of the Securities Exchange Act of 1934.

DTC was created to hold securities for its participants and facilitate the clearance and settlement of securities transactions between its participants. It does this through electronic book-entry changes in the accounts of its direct participants, eliminating the need for physical movement of securities certificates.

Euroclear and Clearstream

Like DTC, Euroclear and Clearstream hold securities for their participants and facilitate the clearance and settlement of securities transactions between their participants through electronic book-entry changes in their accounts. Euroclear and Clearstream provide various services to their participants, including the safekeeping, administration, clearance and settlement and lending and borrowing of internationally traded securities. Participants in Euroclear and Clearstream are financial institutions such as underwriters, securities brokers and dealers, banks and trust companies. Some of the underwriters participating in this offering are participants in Euroclear or Clearstream. Other banks, brokers, dealers and trust companies have indirect access to Euroclear or Clearstream by clearing through or maintaining a custodial relationship with a Euroclear or Clearstream participant.

Ownership of the Notes through DTC, Euroclear and Clearstream

We will issue the Notes in the form of one or more fully registered global notes, registered in the name of a nominee of DTC. Financial institutions, acting as direct and indirect participants in DTC, will represent your beneficial interests in the global notes. These financial institutions will record the ownership and transfer of your beneficial interests through book-entry accounts. You may hold your beneficial interests in the global notes through Euroclear or Clearstream, if you are a DTC participant in such systems, or indirectly through organizations that are DTC participants in such systems. Euroclear and Clearstream will hold their Euroclear/Clearstream participants’ beneficial interests in the global notes in their customers’ securities accounts with their depositaries. These depositaries of Euroclear and Clearstream in turn will hold such interests in their customers’ securities accounts with DTC.

We and the fiscal agent generally will treat the registered holder of the Notes, initially Cede & Co., as the absolute owner of the Notes for all purposes. Once we and the fiscal agent make payments to the registered holder, we and the fiscal agent will no longer be liable on the Notes for the amounts so paid. Accordingly, if you

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own a beneficial interest in the global notes, you must rely on the procedures of the institutions through which you hold your interests in the Notes, including DTC, Euroclear, Clearstream and their respective participants, to exercise any of the rights granted to holders of Notes. Under existing industry practice, if you desire to take any action that Cede & Co., as the holder of the global notes, is entitled to take, then Cede & Co. would authorize the DTC participant through which you own your beneficial interest to take such action. The DTC participant would then either authorize you to take the action or act for you on your instructions.

DTC may grant proxies or authorize its DTC participants, or persons holding beneficial interests in the Notes through such DTC participants, to exercise any rights of a holder or take any actions that a holder is entitled to take under the Fiscal Agency Agreement or the Notes. Euroclear’s or Clearstream’s ability to take actions as holder under the Notes or the Fiscal Agency Agreement will be limited by the ability of their respective depositaries to carry out such actions for them through DTC. Euroclear and Clearstream will take such actions only in accordance with their respective rules and procedures.

The fiscal agent will not charge you any fees for the Notes, other than reasonable fees and indemnity satisfactory to the fiscal agent for the replacement of lost, stolen, mutilated or destroyed Notes. However, you may incur fees for the maintenance and operation of the book-entry accounts with the clearing systems in which your beneficial interests are held.

Transfers Within and Between DTC, Euroclear and Clearstream

Trading Between DTC Purchasers and Sellers

DTC participants will transfer interests in the Notes among themselves in the ordinary way according to DTC rules. Participants will pay for such transfers by wire transfer. The laws of some states require certain purchasers of securities to take physical delivery of the securities in definitive form. These laws may impair your ability to transfer beneficial interests in the global notes to such purchasers. DTC can act only on behalf of its direct participants, who in turn act on behalf of indirect participants and certain banks. Thus, your ability to pledge a beneficial interest in the global notes to persons that do not participate in the DTC system, and to take other actions, may be limited because you will not possess a physical certificate that represents your interest.

Trading Between Euroclear and/or Clearstream Participants

Participants in Euroclear and Clearstream will transfer interests in the Notes among themselves according to the rules and operating procedures of Euroclear and Clearstream.

Trading Between a DTC Seller and a Euroclear or Clearstream Purchaser

When the Notes are to be transferred from the account of a DTC participant to the account of a Euroclear or Clearstream participant, the purchaser must first send instructions to Euroclear or Clearstream through a participant at least one business day prior to the settlement date. Euroclear or Clearstream will then instruct its depositary to receive the Notes and make payment for them. On the settlement date, the depositary will make payment to the DTC participant’s account, and the Notes will be credited to the depositary’s account. After settlement has been completed, DTC will credit the Notes to Euroclear or Clearstream, Euroclear or Clearstream will credit the Notes, in accordance with its usual procedures, to the participant’s account, and the participant will then credit the purchaser’s account. These securities credits will appear the next day (European time) after the settlement date. The cash debit from the account of Euroclear or Clearstream will be back-valued to the value date, which will be the preceding day if settlement occurs in New York. If settlement is not completed on the intended value date (i.e., the trade fails), the cash debit will instead be valued at the actual settlement date.

Participants in Euroclear and Clearstream will need to make funds available to Euroclear or Clearstream to pay for the Notes by wire transfer on the value date. The most direct way of doing this is to pre-position funds (i.e., have funds in place at Euroclear or Clearstream before the value date), either from cash on hand or existing

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lines of credit. Under this approach, however, participants may take on credit exposure to Euroclear and Clearstream until the Notes are credited to their accounts one day later.

As an alternative, if Euroclear or Clearstream has extended a line of credit to a participant, the participant may decide not to pre-position funds, but to allow Euroclear or Clearstream to draw on the line of credit to finance settlement for the Notes. Under this procedure, Euroclear or Clearstream would charge the participant overdraft charges for one day, assuming that the overdraft would be cleared when the Notes were credited to the participant’s account. However, interest on the Notes would accrue from the value date. Therefore, in many cases the interest income on the Notes which the participant earns during that one-day period will substantially reduce or offset the amount of the participant’s overdraft charges. Of course, this result will depend on the cost of funds (i.e., the interest rate that Euroclear or Clearstream charges) to each participant.

Since the settlement will occur during New York business hours, a DTC participant selling an interest in the Notes can use its usual procedures for transferring global securities to the depositories of Euroclear or Clearstream for the benefit of Euroclear or Clearstream participants. The DTC seller will receive the sale proceeds on the settlement date. Thus, to the DTC seller, a cross-market sale will settle no differently than a trade between two DTC participants.

Finally, day traders who use Euroclear or Clearstream and who purchase Notes from DTC participants for credit to Euroclear participants or Clearstream participants should note that these trades will automatically fail unless one of three steps is taken:

• borrowing through Euroclear or Clearstream for one day, until the purchase side of the day trade is reflected in the day trader’s Euroclear or Clearstream account, in accordance with the clearing system’s customary procedures;

• borrowing the Notes in the United States from DTC participants no later than one day prior to settlement, which would allow sufficient time for the Notes to be reflected in the Euroclear or Clearstream account in order to settle the sale side of the trade; or

• staggering the value dates for the buy and sell sides of the trade so that the value date for the purchase from the DTC participant is at least one day prior to the value date for the sale to the Euroclear or Clearstream participant.

Trading Between a Euroclear or Clearstream Seller and a DTC Purchaser

Due to time-zone differences in their favor, Euroclear and Clearstream participants can use their usual procedures to transfer Notes through their depositaries to a DTC participant. The seller must first send instructions to Euroclear or Clearstream through a participant at least one business day prior to the settlement date. Euroclear or Clearstream will then instruct its depositary to credit the Notes to the DTC participant’s account and receive payment. The payment will be credited in the account of the Euroclear or Clearstream participant on the following day, but the receipt of the cash proceeds will be back-valued to the value date, which will be the preceding day if settlement occurs in New York. If settlement is not completed on the intended value date (i.e., the trade fails), the receipt of the cash proceeds will instead be valued at the actual settlement date.

If the Euroclear or Clearstream participant selling the Notes has a line of credit with Euroclear or Clearstream and elects to be in debit for the Notes until it receives the sale proceeds in its account, then the back-valuation may substantially reduce or offset any overdraft charges that the participant incurs over that period.

Settlement in other currencies between DTC and Euroclear and Clearstream is possible using free-of-payment transfers to move the Notes, but funds movement will take place separately.

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TAXATION

Korean Taxation

For a discussion of certain Korean tax considerations that may be relevant to you if you invest in the Notes, see “Taxation—Korean Taxation” in the accompanying prospectus.

U.S. Federal Income Tax Considerations

For a discussion of U.S. federal income tax considerations that may be relevant to you if you are a beneficial owner of the Notes and are a U.S. holder, see “Taxation—U.S. Federal Income Tax Considerations” in the accompanying prospectus.

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UNDERWRITING

Relationship with the Underwriters

We and the underwriters named below (the “Underwriters”) have entered into a Terms Agreement dated January 23, 2025 (the “Terms Agreement”) with respect to the Notes relating to the Underwriting Agreement—Standard Terms (together with the Terms Agreement, the “Underwriting Agreement”) filed as an exhibit to the registration statement. Subject to the terms and conditions set forth in the Underwriting Agreement, we have agreed to sell to each of the Underwriters, severally and not jointly, and each of the Underwriters has, severally and not jointly, agreed to purchase, the following principal amount of the Notes set out opposite its name below:

Names of the Underwriters	Principal Amount of the 2028 Notes		Principal Amount of the 2030 Notes		Principal Amount of the Floating Rate Notes
BofA Securities, Inc.	US$	180,000,000	US$	240,000,000	US$	180,000,000
Citigroup Global Markets Limited		180,000,000		240,000,000		180,000,000
Crédit Agricole Corporate and Investment Bank		180,000,000		240,000,000		180,000,000
MUFG Securities Asia Limited		180,000,000		240,000,000		180,000,000
Standard Chartered Bank		180,000,000		240,000,000		180,000,000
Total	US$	900,000,000	US$	1,200,000,000	US$	900,000,000

Any Underwriter who is not registered as a broker-dealer with the Securities and Exchange Commission will not engage in any transaction related to the Notes in the United States except as permitted by the Exchange Act. Crédit Agricole Corporate and Investment Bank will offer the Notes in the United States through its registered broker-dealer affiliate in the United States, Crédit Agricole Securities (USA) Inc. Standard Chartered Bank will not effect any offers or sales of any Notes in the United States unless it is through one or more U.S. registered broker-dealers as permitted by the regulations of FINRA.

Under the terms and conditions of the Underwriting Agreement, if the Underwriters take any series of the Notes, then the Underwriters are obligated to take and pay for all of the Notes of such series.

The Underwriters initially propose to offer the Notes directly to the public at the offering price described on the cover page of this prospectus supplement. After the initial offering of the Notes, the Underwriters may from time to time vary the offering price and other selling terms.

If a jurisdiction requires that the offering be made by a licensed broker or dealer and the Underwriters or any affiliate of the Underwriters is a licensed broker or dealer in that jurisdiction, the offering shall be deemed to be made by that Underwriter or its affiliate on our behalf in such jurisdiction.

The Notes are a new class of securities with no established trading market. Applications have been made to the SGX-ST for the listing and quotation of the Notes on the SGX-ST. In addition, applications will be made to list the Notes on the Luxembourg Stock Exchange and to have the Notes admitted to trading on the Euro MTF Market of the Luxembourg Stock Exchange. Applications will also be made for listing of the Notes to the International Securities Market of the London Stock Exchange. No assurance can be given that such applications will be approved or that such listings will be maintained. The Underwriters have advised us that they intend to make a market in the Notes. However, they are not obligated to do so and they may discontinue any market making activities with respect to the Notes at any time without notice. Accordingly, we cannot assure you as to the liquidity of any trading market for the Notes.

We have agreed to indemnify the Underwriters against certain liabilities, including liabilities under the Securities Act of 1933, as amended, or to contribute to payments which the Underwriters may be required to make in respect of any such liabilities.

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The amount of our net proceeds from the 2028 Notes is US$896,085,000 after deducting underwriting discounts but not estimated expenses. Expenses associated with the 2028 Notes offering are estimated to be US$100,000. The Underwriters have agreed to pay certain of our expenses incurred in connection with the offering of the 2028 Notes.

The amount of our net proceeds from the 2030 Notes is US$1,195,548,000 after deducting underwriting discounts but not estimated expenses. Expenses associated with the 2030 Notes offering are estimated to be US$100,000. The Underwriters have agreed to pay certain of our expenses incurred in connection with the offering of the 2030 Notes.

The amount of our net proceeds from the Floating Rate Notes is US$898,200,000 after deducting underwriting discounts but not estimated expenses. Expenses associated with the Floating Rate Notes offering are estimated to be US$100,000. The Underwriters have agreed to pay certain of our expenses incurred in connection with the offering of the Floating Rate Notes.

The Underwriters and certain of their affiliates may have performed certain commercial banking, investment banking and advisory services for us and/or our affiliates from time to time for which they have received customary fees and expenses and may, from time to time, engage in transactions with and perform services for us and/or our affiliates in the ordinary course of their business.

The Underwriters or certain of their affiliates may purchase Notes and be allocated Notes for asset management and/or proprietary purposes but not with a view to distribution. The Underwriters or their respective affiliates may purchase Notes for their own account and enter into transactions, including credit derivatives, such as asset swaps, repackaging and credit default swaps relating to Notes and/or other securities of us or our subsidiaries or affiliates at the same time as the offer and sale of Notes or in secondary market transactions. Such transactions would be carried out as bilateral trades with selected counterparties and separately from any existing sale or resale of Notes to which this prospectus supplement relates (notwithstanding that such selected counterparties may also be purchasers of Notes).

Important Notice to CMIs (including private banks)

This notice to CMIs (including private banks) is a summary of certain obligations the SFC Code imposes on CMIs, which require the attention and cooperation of other CMIs (including private banks). Certain CMIs may also be acting as OCs for this offering and are subject to additional requirements under the SFC Code.

Prospective investors who are the directors, employees or major shareholders of the Issuer, a CMI or its group companies would be considered under the SFC Code as having an Association with the Issuer, the CMI or the relevant group company. CMIs should specifically disclose whether their investor clients have any Association when submitting orders for the Notes. In addition, private banks should take all reasonable steps to identify whether their investor clients may have any Associations with the Issuer or any CMI (including its group companies) and inform the Underwriters accordingly.

CMIs are informed that the marketing and investor targeting strategy for this offering includes institutional investors, sovereign wealth funds, pension funds, hedge funds, family offices and high net worth individuals, in each case, subject to the selling restrictions and any UK MiFIR product governance language set out elsewhere in this prospectus supplement.

CMIs should ensure that orders placed are bona fide, are not inflated and do not constitute duplicated orders (i.e., two or more corresponding or identical orders placed via two or more CMIs). CMIs should enquire with their investor clients regarding any orders which appear unusual or irregular. CMIs should disclose the identities of all investors when submitting orders for the Notes (except for omnibus orders where underlying investor information may need to be provided to any OCs when submitting orders). Failure to provide underlying investor information for omnibus orders, where required to do so, may result in that order being rejected. CMIs should not place “X-orders” into the order book.

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CMIs should segregate and clearly identify their own proprietary orders (and those of their group companies, including private banks as the case may be) in the order book and book messages.

CMIs (including private banks) should not offer any rebates to prospective investors or pass on any rebates provided by the Issuer. In addition, CMIs (including private banks) should not enter into arrangements which may result in prospective investors paying different prices for the Notes.

The SFC Code requires that a CMI disclose complete and accurate information in a timely manner on the status of the order book and other relevant information it receives to targeted investors for them to make an informed decision. In order to do this, those Underwriters in control of the order book should consider disclosing order book updates to all CMIs.

When placing an order for the Notes, private banks should disclose, at the same time, if such order is placed other than on a “principal” basis (whereby it is deploying its own balance sheet for onward selling to investors). private banks who do not provide such disclosure are hereby deemed to be placing their order on such a “principal” basis. Otherwise, such order may be considered to be an omnibus order pursuant to the SFC Code. private banks should be aware that placing an order on a “principal” basis may require the Underwriters to apply the “proprietary orders” of the SFC Code to such order and will require the Underwriters to apply the “rebates” requirements of the SFC Code (if applicable) to such order.

In relation to omnibus orders, when submitting such orders, CMIs (including private banks) that are subject to the SFC Code should disclose underlying investor information in respect of each order constituting the relevant omnibus order (failure to provide such information may result in that order being rejected). Underlying investor information in relation to omnibus orders should consist of:

• The name of each underlying investor;

• A unique identification number for each investor;

• Whether an underlying investor has any “Associations” (as used in the SFC Code);

• Whether any underlying investor order is a “Proprietary Order” (as used in the SFC Code);

• Whether any underlying investor order is a duplicate order.

Underlying investor information in relation to omnibus orders should be sent to: bofa_dcm_syndicate_pb_orders@bofa.com; HKG-Syndicate@ca-cib.com; Asia-Syndicate@hk.sc.mufg.jp; synhk@sc.com.

To the extent information being disclosed by CMIs and investors is personal and/or confidential in nature, CMIs (including private banks) agree and warrant: (A) to take appropriate steps to safeguard the transmission of such information to any OCs; and (B) that they have obtained the necessary consents from the underlying investors to disclose such information to any OCs. By submitting an order and providing such information to any OCs, each CMI (including private banks) further warrants that they and the underlying investors have understood and consented to the collection, disclosure, use and transfer of such information by any OCs and/or any other third parties as may be required by the SFC Code, including to the Issuer, relevant regulators and/or any other third parties as may be required by the SFC Code, for the purpose of complying with the SFC Code, during the bookbuilding process for this offering. CMIs that receive such underlying investor information are reminded that such information should be used only for submitting orders in this offering. The Underwriters may be asked to demonstrate compliance with their obligations under the SFC Code, and may request other CMIs (including private banks) to provide evidence showing compliance with the obligations above (in particular, that the necessary consents have been obtained). In such event, other CMIs (including private banks) are required to provide the Underwriters with such evidence within the timeline requested.

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By placing an order, prospective investors (including any underlying investors in relation to omnibus orders) are deemed to represent to the Underwriters that it is not a Sanctions Restricted Person. A “Sanctions Restricted Person” means an individual or entity (a “Person”): (a) that is, or is directly or indirectly owned or controlled by a Person that is, described or designated in (i) the most current “Specially Designated Nationals and Blocked Persons” list (which as of the date hereof can be found at: http://www.treasury.gov/ofac/downloads/sdnlist.pdf ) or (ii) the Foreign Sanctions Evaders List (which as of the date hereof can be found at: http://www.treasury.gov/ofac/downloads/fse/fselist.pdf) or (iii) the most current “Consolidated list of persons, groups and entities subject to EU financial sanctions” (which as of the date hereof can be found at: https://eeas.europa.eu/headquarters/headquartershomepage_en/8442/Consolidated%20list%20of%20sanctions); or (b) that is otherwise the subject of any sanctions administered or enforced by any Sanctions Authority, other than solely by virtue of: (i) their inclusion in the most current “Sectoral Sanctions Identifications” list (which as of the date hereof can be found at: https://www.treasury.gov/ofac/downloads/ssi/ssilist.pdf) (the “SSI List”), (ii) their inclusion in Annexes 3, 4, 5 and 6 of Council Regulation No. 833/2014, as amended by Council Regulation No. 960/2014 (the “EU Annexes”), (iii) their inclusion in any other list maintained by a Sanctions Authority, with similar effect to the SSI List or the EU Annexes, (iv) them being the subject of restrictions imposed by the U.S. Department of Commerce’s Bureau of Industry and Security (“BIS”) under which BIS has restricted exports, re-exports or transfers of certain controlled goods, technology or software to such individuals or entities; (v) them being an entity listed in the Annex to the new Executive Order of 3 June 2021 entitled “Addressing the Threat from Securities Investments that Finance Certain Companies of the People’s Republic of China” (known as the Non-SDN Chinese Military- Industrial Complex Companies List), which amends the Executive Order 13959 of 12 November 2020 entitled “Addressing the threat from Securities Investments that Finance Chinese Military Companies”; or (vi) them being subject to restrictions imposed on the operation of an online service, Internet application or other information or communication services in the United States directed at preventing a foreign government from accessing the data of U.S. persons; or (c) that is located, organized or a resident in a comprehensively sanctioned country or territory, including Cuba, Iran, North Korea, Syria, the Crimea region of Ukraine, the Donetsk’s People’s Republic or Luhansk People’s Republic. “Sanctions Authority” means: (a) the United States government; (b) the United Nations; (c) the European Union (or any of its member states); (d) the United Kingdom; (e) any other equivalent governmental or regulatory authority, institution or agency which administers economic, financial or trade sanctions; and (f) the respective governmental institutions and agencies of any of the foregoing including, without limitation, the Office of Foreign Assets Control of the U.S. Department of the Treasury, the United States Department of State, the United States Department of Commerce and His Majesty’s Treasury.

Delivery of the Notes

We expect to make delivery of the Notes, against payment in same-day funds on or about February 3, 2025, which we expect will be the seventh business day following the date of this prospectus supplement. Under Rule 15c6-1 promulgated under the Securities Exchange Act of 1934, as amended, U.S. purchasers are generally required to settle trades in the secondary market in one business day, unless they and the other parties to any such trade expressly agree otherwise. Accordingly, if you wish to trade in the Notes on any day prior to the first business day from the settlement, because the Notes will initially settle in T+7, you may be required to specify an alternate settlement cycle at the time of your trade to prevent a failed settlement. Purchasers in other countries should consult with their own advisors.

Foreign Selling Restrictions

Each Underwriter has agreed, severally and not jointly, to the following selling restrictions in connection with the offering with respect to the following jurisdictions:

Korea

Each Underwriter has severally represented and agreed that (i) it has not offered, sold or delivered and will not offer, sell or deliver, directly or indirectly, any Notes in Korea, or to, or for the account or benefit of, any

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resident of Korea, except as otherwise permitted by applicable Korean laws and regulations, and (ii) any securities dealer to whom the Underwriters may sell the Notes will agree that it will not offer any Notes, directly or indirectly, in Korea, or to any resident of Korea, except as permitted by applicable Korean laws and regulations, or to any other dealer who does not so represent and agree.

United Kingdom

Each Underwriter has severally represented and agreed that (i) it has only communicated or caused to be communicated and will only communicate or cause to be communicated an invitation or inducement to engage in investment activity (within the meaning of Section 21 of the Financial Services and Markets Act of 2000 (the “FSMA”)) received by it in connection with the issue or sale of any Notes in circumstances in which Section 21(1) of the FSMA does not apply to us, and (ii) it has complied and will comply with all applicable provisions of the FSMA with respect to anything done by it in relation to any Notes in, from or otherwise involving the United Kingdom.

Spain

The proposed offer of Notes has not been registered with the Comisión Nacional del Mercado de Valores (the “CNMV”). Accordingly, each of the Underwriters has represented and agreed that Notes can only be offered in Spain to qualified investors pursuant to and in compliance with the consolidated text of the Securities Market Law approved by Spanish Royal Legislative Decree 4/2015, Spanish Royal Decree 1310/2005, both as amended from time to time, and any regulation issued thereunder.

Japan

Each Underwriter has severally represented and agreed that the Notes have not been and will not be registered under the Financial Instruments and Exchange Act of Japan (Act No. 25 of 1948, as amended, the “Financial Instruments and Exchange Act”). Accordingly, each Underwriter has severally represented and agreed that it has not, directly or indirectly, offered or sold and will not, directly or indirectly, offer or sell any Notes in Japan or to, or for the benefit of, any resident of Japan (which term as used herein means any person resident in Japan, including any corporation or other entity organized under the laws of Japan) or to others for re-offering or re-sale, directly or indirectly, in Japan or to, or for the benefit of, any resident of Japan except pursuant to an exemption from the registration requirements of, and otherwise in compliance with, the Financial Instruments and Exchange Act and other relevant laws and regulations of Japan.

Hong Kong

Each Underwriter has severally represented and agreed that:

• it has not offered or sold and will not offer or sell in Hong Kong, by means of any document, any Notes other than (a) to “professional investors” as defined in the Securities and Futures Ordinance (Cap. 571) of Hong Kong (the “SFO”) and any rules made under the SFO; or (b) in other circumstances which do not result in the document being a “prospectus” as defined in the Companies (Winding Up and Miscellaneous Provisions) Ordinance (Cap. 32) of Hong Kong (the “C(WUMP)O”) or which do not constitute an offer to the public within the meaning of the C(WUMP)O; and

• it has not issued or had in its possession for the purposes of issue, and will not issue or have in its possession for the purposes of issue, whether in Hong Kong or elsewhere, any advertisement, invitation or document relating to the Notes, which is directed at, or the contents of which are likely to be accessed or read by, the public of Hong Kong (except if permitted to do so under the securities laws of Hong Kong) other than with respect to Notes which are or are intended to be disposed of only to persons outside Hong Kong or only to “professional investors” as defined in the SFO and any rules made under the SFO.

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Singapore

Each Underwriter has acknowledged that this prospectus supplement and the accompanying prospectus have not been registered as a prospectus with the Monetary Authority of Singapore.

Accordingly, each Underwriter has severally represented and agreed that it has not offered or sold any Notes or caused the Notes to be made the subject of an invitation for subscription or purchase and will not offer or sell any Notes or cause the Notes to be made the subject of an invitation for subscription or purchase, and has not circulated or distributed, nor will it circulate or distribute, this prospectus supplement or the accompanying prospectus or any other document or material in connection with the offer or sale, or invitation for subscription or purchase, of the Notes, whether directly or indirectly, to any person in Singapore other than (i) to an institutional investor (as defined in Section 4A of the Securities and Futures Act 2001 of Singapore, as modified or amended from time to time (the “SFA”)) pursuant to Section 274 of the SFA; or (ii) to an accredited investor (as defined in Section 4A of the SFA) pursuant to and in accordance with the conditions specified in Section 275 of the SFA.

Australia

No prospectus or other disclosure document (as defined in the Corporations Act 2001 of Australia) in relation to the offering of the Notes has been or will be lodged with or registered by Australian Securities and Investments Commission or the Australian Securities Exchange Limited. Each Underwriter has represented and agreed that it has not:

(a) made or invited, and will not make or invite, an offer of the Notes for issue or sale in Australia (including an offer or invitation which is received by a person in Australia); and

(b) distributed or published and will not distribute or publish any draft, preliminary or final form offering memorandum, advertisement or other offering material relating to the Notes in Australia,

unless:

(i) the minimum aggregate consideration payable by each offeree is at least AUD 500,000 (or its equivalent in an alternate currency) (disregarding money lent by the offeror or its associates) or the offer otherwise does not require disclosure to investors in accordance with Part 6D.2 and Part 7 of the Corporations Act 2001 of Australia; and

(ii) such action complies with all applicable laws, directives and regulations and does not require any document to be lodged with, or registered by, the Australian Securities and Investments Commission.

Each Underwriter has agreed that it will not sell the Notes in circumstances where employees of the Underwriter aware of, or involved in, the sale know, or have reasonable grounds to suspect, that the Notes, or an interest in or right in respect of the Notes, was being, or would later be, acquired either directly or indirectly by a resident of Australia, or a non-resident who is engaged in carrying on business in Australia at or through a permanent establishment of that non-resident in Australia (the expressions “resident of Australia”, “non-resident” and “permanent establishment” having the meanings given to them by the Australian Tax Act).

Canada

Prospective Canadian investors are advised that the information contained within the prospectus supplement and the accompanying prospectus has not been prepared with regard to matters that may be of particular concern to Canadian investors. Accordingly, prospective Canadian investors should consult with their own legal, financial and tax advisers concerning the information contained within the prospectus supplement and the accompanying prospectus and as to the suitability of an investment in the Notes in their particular circumstances.

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Each Underwriter has severally represented and agreed that the Notes may only be offered or sold in the provinces of Alberta, British Columbia, Ontario and Québec or to or for the benefit of a resident of these provinces pursuant to an exemption from the requirement to file a prospectus in such province in which such offer or sale is made, and only by a dealer duly registered under the applicable securities laws of that province or by a dealer that is relying in that province on the “international dealer” exemption provided by section 8.18 of National Instrument 31-103 Registration Requirements, Exemptions and Ongoing Registrant Obligations (NI 31-103). Furthermore, the Notes may only be offered or sold to or for the benefit of a resident of any such province provided that such resident is purchasing, or deemed to be purchasing, as principal and is both an “accredited investor” as defined in National Instrument 45-106 Prospectus Exemptions (NI 45-106) or subsection 73.3 (1) of the Securities Act (Ontario) and a “permitted client” as defined in NI 31-103. By purchasing any Notes and accepting delivery of a purchase confirmation a purchaser is representing to the underwriters and the dealer from whom the purchase confirmation is received that it is an “accredited investor” and “permitted client” as defined above. The distribution of the Notes in Canada is being made on a private placement basis only and any resale of the Notes must be made in accordance with applicable Canadian securities laws, which will vary depending on the relevant jurisdiction, and which may require resales to be made in accordance with prospectus and registration requirements or exemptions from the prospectus and registration requirements.

Securities legislation in certain provinces or territories of Canada may provide a purchaser with remedies for rescission or damages if this prospectus supplement or the accompanying prospectus (including any amendment hereto) contains a misrepresentation, provided that the remedies for rescission or damages are exercised by the purchaser within the time limit prescribed by the securities legislation of the purchaser’s province or territory. The purchaser should refer to any applicable provisions of the securities legislation of the purchaser’s province or territory for particulars of these rights or consult with a legal advisor.

Under Canadian securities law, National Instrument 33-105 Underwriting Conflicts (NI 33-105) provides disclosure requirements with respect to potential conflicts of interest between an issuer and underwriters, dealers or placement agents, as the case may be. To the extent any conflict of interest between us and any of the Underwriters (or any other placement agent acting in connection with this offering) may exist in respect of this offering, the applicable parties to this offering are relying on the exemption from these disclosure requirements provided to them by section 3A.3 of NI 33-105 (exemption based on U.S. disclosure).

Upon receipt of this prospectus, each Canadian purchaser hereby confirms that it has expressly requested that all documents evidencing or relating in any way to the sale of the securities described herein (including for greater certainty any purchase confirmation or any notice) be drawn up in the English language only. Par la réception de ce prospectus, chaque acheteur canadien confirme par les présentes qu’il a expressément exigé que tous les documents faisant foi ou se rapportant de quelque manière que ce soit à la vente des valeurs mobilières décrites aux présentes (incluant, pour plus de certitude, toute confirmation d’achat ou tout avis) soient rédigés en anglais seulement.

Price Stabilization and Short Position

In connection with this offering, any of the Underwriters appointed and acting in its capacity as stabilizing manager (the “Stabilizing Manager”) or any person acting for it, on behalf of the Underwriters, may purchase and sell the Notes in the open market. These transactions may include over-allotment, covering transactions, penalty bids and stabilizing transactions. Over-allotment involves sales of the Notes in excess of the principal amount of Notes to be purchased by the Underwriters in this offering, which creates a short position for the Underwriters. Covering transactions involve purchases of the Notes in the open market after the distribution has been completed in order to cover short positions. A penalty bid occurs when a particular Underwriter repays to the Underwriters a portion of the underwriting discount received by it because the Underwriters or the Stabilizing Manager has repurchased Notes sold by or for the account of such Underwriter in stabilizing or short covering transactions. Stabilizing transactions consist of certain bids or purchases of Notes in the open market for the purpose of preventing or retarding a decline in the market price of the Notes while the offering is in progress.

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Any of these activities may have the effect of preventing or retarding a decline in the market price of the Notes. They may also cause the price of the Notes to be higher than the price that otherwise would exist in the open market in the absence of these transactions. The Stabilizing Manager may conduct these transactions in the over-the-counter market or otherwise. If the Stabilizing Manager commences any of these transactions, it may discontinue them at any time, and must discontinue them after a limited period.

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LEGAL MATTERS

The validity of the Notes is being passed upon for us by Cleary Gottlieb Steen & Hamilton LLP, New York, New York, and by Yulchon LLC, Seoul, Korea. Certain legal matters will also be passed upon for the Underwriters by Linklaters LLP, Seoul, Korea. In giving their opinions, Cleary Gottlieb Steen & Hamilton LLP and Linklaters LLP may rely as to matters of Korean law upon the opinion of Yulchon LLC, and Yulchon LLC may rely as to matters of New York law upon the opinions of Cleary Gottlieb Steen & Hamilton LLP.

OFFICIAL STATEMENTS AND DOCUMENTS

Our Chief Executive Officer and Chairman of the Board of Directors, in his official capacity, has supplied the information set forth in this prospectus supplement under “Recent Developments—The Korea Development Bank.” Such information is stated on his authority. The documents identified in the portion of this prospectus supplement captioned “Recent Developments—The Republic of Korea” as the sources of financial or statistical data are derived from official public documents of the Republic and of its agencies and instrumentalities.

GENERAL INFORMATION

We were established in 1954 as a government-owned financial institution pursuant to The Korea Development Bank Act, as amended. The address of our registered office is 14, Eunhaeng-ro, Yeongdeungpo-gu, Seoul 07242, The Republic of Korea. Our Legal Entity Identifier is 549300ML2LNRZUCS7149.

Our Board of Directors can be reached at the address of our registered office: c/o 14, Eunhaeng-ro, Yeongdeungpo-gu, Seoul 07242, The Republic of Korea.

The issue of the Notes has been authorized by a resolution of our Board of Directors passed on December 26, 2024 and a decision of our Chief Executive Officer dated December 23, 2024. On January 10, 2025, we filed our reports on the proposed issuance of the Notes with the Ministry of Economy and Finance of Korea.

The registration statement with respect to us and the Notes has been filed with the U.S. Securities and Exchange Commission in Washington, D.C. under the Securities Act of 1933, as amended. Additional information concerning us and the Notes is contained in the registration statement and post-effective amendments to such registration statement, including their various exhibits, which are available to the public from the U.S. Securities and Exchange Commission’s website at http://www.sec.gov. This website is maintained by the U.S. Securities and Exchange Commission and contains reports and other information regarding issuers that file electronically with the U.S. Securities and Exchange Commission.

The Notes have been accepted for clearance through DTC, Euroclear and Clearstream:

	ISIN	CUSIP	Common code
2028 Notes	US500630EG96	500630 EG9	299046397
2030 Notes	US500630EH79	500630 EH7	299046427
Floating Rate Notes	US500630EJ36	500630 EJ3	299046508

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HEAD OFFICE OF THE BANK

14, Eunhaeng-ro

Yeongdeungpo-gu, Seoul 07242

The Republic of Korea

FISCAL AGENT AND PRINCIPAL PAYING AGENT

The Bank of New York Mellon

London Branch

One Canada Square

London E14 5AL

United Kingdom

LEGAL ADVISORS TO THE BANK

as to Korean law	as to U.S. law
Yulchon LLC Parnas Tower, 38F 521 Teheran-ro, Gangnam-gu Seoul 06164 The Republic of Korea	Cleary Gottlieb Steen & Hamilton LLP c/o 19th Floor, Ferrum Tower 19 Eulji-ro 5-gil, Jung-gu Seoul 04539 The Republic of Korea

LEGAL ADVISOR TO THE UNDERWRITERS

as to U.S. law

Linklaters LLP

22nd Floor, Center One Building

26, Eulji-ro 5-gil, Jung-gu

Seoul 04539

The Republic of Korea

AUDITOR OF THE BANK

Nexia Samduk

12F, S&S Building

48 Ujeongguk-ro, Jongno-gu

Seoul 03145

The Republic of Korea

SINGAPORE LISTING AGENT

Shook Lin & Bok LLP

1 Robinson Road

#18-00 AIA Tower

Singapore 048542