Hana Financial : Message from the Board of Directors(Feb.2023)

Hana Financial Group

Message from

the Board of Directors

FEB. 2023

Letter to Shareholders

Dear Shareholders,

We sincerely thank you for your ongoing interest and support in Hana Financial Group (the "Group" or the "Company").

Today, the	Group announced	its financial	results	for FY2022, which included an annual net profit of KRW 3,625.7 billion, continuing
our steady	growth over the	past years	despite	growing uncertainties in the global economy and intensifying competition from Big

Tech. Thanks to the efforts of management and employees, the Group's profitability and capital adequacy metrics have improved while maintaining sound asset quality as well as the highest CET-1 ratio in the industry.

Throughout FY2022, the main objectives of the Board of Directors ("the Board") have been: (i) fostering stable growth based on risk management; (ii) strengthening digital competitiveness; (iii) improving the ESG structure for the sustainable growth of the Group; and (vi) most importantly, increasing shareholder returns and value.

Since the establishment of the holding company in 2005, the Company has been the only domestic financial holding company to pay interim dividends every year except during 2009 Global Financial Crisis ("GFC"). The dividend yield has also remained at the highest level in the industry, showing consistency in our shareholder return policy. The Group seeks to continue being at the forefront of this trend with the announcement today of our robust plans for a more active shareholder return policy, including a higher dividend payout ratio, share buyback, and mid- to long-term target of reaching a shareholder return ration of 50%.

The Board is cognizant that consistent long-term growth in shareholder value can only be achieved with an underpinning of strong ESG values and structures. As such, the Sustainable Management Committee ("the Committee") has taken a key role in overseeing and steering the Group's ESG initiatives. During FY2022, the Committee established sustainability blueprints to rigorously pursue and join various ESG schemes. As a result, the Group's ESG endeavors have received positive recognition: Hana Financial Group has been newly added to the DJSI World Index with the highest score in the financial industry category of S&P Dow Jones ESG Evaluation and its MSCI ESG evaluation rating has been upgraded for two consecutive years to 'AA' during 2022.

Letter to Shareholders (cont.)

Regarding the appointment of the Group's CEO, Mr Young-joo Ham, in early 2022, the Board continues to closely monitor the legal matters relating to the FSC disciplinary warning issued in 2021. As part of this process, the independent directors of the CEO Nomination Committee evaluated the results of external legal advice which included the review of Supreme Court rulings in similar legal cases at peer financial groups. Following rigorous discussions, the Board concluded that the current CEO is fit to serve in this role until the final verdict.

Additionally, throughout FY2022, a key focus area of the Board has been to improve and increase our communication and engagement efforts with shareholders. In May 2022, several one-on-one meetings were held with our major shareholders. Subsequently, the independent directors held a roundtable with 19 institutional investors in November 2022 and last month additional one-on-one or group meetings with 11 institutions were convened to gather investors' input on effective ways to boost shareholder value.

We hope the following overview of the Board's initiatives in 2022 can provide useful insights into the ESG management and shareholder return policy of Hana Financial Group.

:Yours faithfully,

On behalf of the Board

Tae-seung Paik

Chairman of the Board of Hana Financial Group

Appendix

Group Capital Management and Shareholder Return

Capital Management Plan

• CET-1Target 13~13.5%

(Minimum capital requirement 8%)	+ (Counter cyclical buffer 2.5%)	Macro buffer 2.5% + FX buffer 0.5%)
Current regulatory requirement	Additional regulatory requirement	Macro uncertainty-related internal buffer

Shareholder Return Plan

• CET-113~13.5% range: Return 50% of excess capital (CET-1YoY increase equivalent)
• CET-113.5% and above: Return excess capital
• Mid to long-term shareholder return target 50%
  - lan to deliver progressive increase to reach the target

• The shareholder return policy is subject to change according to various factors such as limitations by laws and regulations, supervision by financial authorities, drastic change surrounding the operating environment, management purpose, etc.

Social Responsibility

• Contributing to system stability by maintaining sound loss absorption capacity
• Performing primary roles (liquidity provider, etc.) as a key financial institution
• Improving the value of stakeholders such as strengthening financial consumer protection

			Total Shareholder	nterim	Year-end	Share Buyback/	(Unit: KRW)
			Return	Dividend	Dividend	Cancellation
Return excess capital	13.5%~		50%				50%
Return 50% of excess capital	13~13.5%	FX buffer 0.5%
(CET-1 YoY increase)	40%
		Macro buffer 2.5%			27%
			30%
			26%		150Wbn
13.15%(e)		CCyB 2.5%
		20%
			20%
				2,400	2,550	(23/2/9 BoD
					Resolution)
		Minimum Requirement
		1,350
		8%
			500	700	800
FY2022CET-1 Ratio	Target		2020	2021	2022		Mid to
	(13~13.5%)					Long-term Target

Hana Financial Group

BOD Activities and Performance Highlights for FY2022

FEB. 2023