エドガーで原本を確認する
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16 UNDER
THE SECURITIES EXCHANGE ACT OF 1934
For the month of March 2024
Commission File Number: 000-53445
KB Financial Group Inc.
(Translation of registrant’s name into English)
26, Gukjegeumyung-ro 8-gil, Yeongdeungpo-gu, Seoul 07331, Korea
(Address of principal executive office)
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.
Form 20-F ☒ Form 40-F ☐
| 1. |
Introduction to the Company | |
| 1.1. |
Business Purpose | |
| 1.2. |
History | |
| 1.3. |
Overview of the Business Group | |
| 1.4. |
Capital Structure | |
| 1.5. |
Dividends | |
| 1.6. |
Amendments to the Articles of Incorporation | |
| 2. |
Business | |
| 2.1. |
Results of Operations | |
| 2.2. |
Sources and Uses of Funds | |
| 2.3. |
Other Information to Consider in Making an Investment Decision | |
| 3. |
Financial Information | |
| 3.1. |
Consolidated Financial Information | |
| 3.2. |
Separate Financial Information | |
| 3.3. |
Other Selected Financial Data | |
| 3.4. |
Other Financial Information | |
| 4. |
Independent Public Accountants | |
| 4.1. |
Audit/ Review Services | |
| 4.2. |
Public Company Accounting Oversight Board (“PCAOB”) Audit Services | |
| 4.3. |
Change in Auditor | |
| 5. |
||
| 5.1. |
||
| 5.2. |
||
| 5.3. |
||
| 5.4. |
||
| 5.5. |
||
| 6. |
||
| 6.1. |
||
| 6.2. |
||
| 6.3. |
||
| 6.4. |
||
| 6.5. |
||
| 7. |
||
| 7.1. |
||
| 7.2. |
||
| 7.3. |
||
| 7.4. |
||
| 7.5. |
||
Summary of Business Report for Fiscal Year 2023
On March 14, 2024, KB Financial Group Inc. (“KB Financial Group” or the “Group”) filed its business report for the fiscal year ended December 31, 2023 (the “Business Report”) with the Financial Services Commission of Korea and the Korea Exchange. This is a summary of the Business Report translated into English.
Except where indicated otherwise, financial information contained in this summary have been prepared in accordance with the Korean equivalent of International Financial Reporting Standards (“K-IFRS”), which differ in certain important respects from generally accepted accounting principles in the United States.
All references to “KB Financial Group,” “we,” “us” or the “Company” are to KB Financial Group and, unless the context requires otherwise, its subsidiaries. In addition, all references to “Won” or “KRW” in this document are to the currency of the Republic of Korea.
| 1. | Introduction to the Company |
| 1.1. | Business Purpose |
KB Financial Group is a financial holding company that was established in September 2008. Its main business purpose is to hold shares in companies that are engaged in financial or related services, as well as govern and manage such companies. Its consolidated subsidiaries are primarily engaged in the banking business, as well as the credit card business, the financial investment business, the insurance business and other related businesses.
| 1.2. | History |
| • | September 26, 2008 |
Obtained final approval from the Financial Services Commission to establish a financial holding company
| • | September 29, 2008 |
Establishment of the Company through a comprehensive stock transfer and listing on the New York Stock Exchange
| • | October 10, 2008 |
Listing on the Korea Exchange
| • | October 20, 2008 |
The largest shareholder of the Company changed from the Korean National Pension Service to ING Bank N.V.
| • | October 31, 2008 |
The largest shareholder of the Company changed from ING Bank N.V. to the Korean National Pension Service
| • | May 4, 2009 |
Added Kookmin Bank Cambodia PLC. as a second-tier subsidiary
| • | June 22, 2009 |
Added KB Life Insurance Co., Ltd. (“KB Life Insurance”), formerly a second-tier subsidiary, as a first-tier subsidiary
| • | July 1, 2009 |
Changed the name of KB Venture Capital Co., Ltd. to KB Investment Co., Ltd. (“KB Investment”)
| • | January 22, 2010 |
The largest shareholder of the Company changed from the Korean National Pension Service to ING Bank N.V.
| • | March 2, 2011 |
Added KB Kookmin Card Co., Ltd. (“KB Kookmin Card”) as a first-tier subsidiary
| • | March 14, 2011 |
KB Futures Co., Ltd. was merged into KB Investment & Securities Co., Ltd. (“KB Investment & Securities”)
| • | July 8, 2011 |
The largest shareholder of the Company changed from ING Bank N.V. to the Korean National Pension Service
| • | January 13, 2012 |
Added KB Savings Bank Co., Ltd. (“KB Savings Bank”) as a first-tier subsidiary
| • | May 11, 2012 |
Added KoFC POSCO HANWHA KB Shared Growth No. 2. Private Equity Fund as a second-tier subsidiary
| • | July 2, 2012 |
Added KoFC Value-up Private Equity Fund as a second-tier subsidiary
| • | October 10, 2012 |
Added Kookmin Bank (China) Ltd. as a second-tier subsidiary
| • | June 20, 2013 |
Acquired the remaining shares of KB Life Insurance, which increased the Company’s shareholding to 100%
| • | September 2, 2013 |
Added Yehansoul Savings Bank as a first-tier subsidiary
| • | January 13, 2014 |
Yehansoul Savings Bank was merged into KB Savings Bank
| • | March 20, 2014 |
Added KB Capital Co., Ltd. (“KB Capital”) as a first-tier subsidiary
| • | June 24, 2015 |
Added KB Insurance Co., Ltd. (“KB Insurance”) as a non-consolidated first-tier subsidiary
| • | November 23, 2015 |
Acquired additional shares of KB Insurance, which increased the Company’s shareholding from 19.47% to 33.29%
| • | May 31, 2016 |
Added Hyundai Securities Co., Ltd. (“Hyundai Securities”) as a non-consolidated first-tier subsidiary
| • | June 21, 2016 |
Disposed of LIG Investment & Securities, Co., Ltd., a second-tier subsidiary
| • | June 28, 2016 |
Acquired treasury shares of Hyundai Securities, which increased the Company’s equity ownership in Hyundai Securities from 22.56% to 29.62%
| • | December 1, 2016 |
Added KB Golden Life Care Co., Ltd. as a second-tier subsidiary
| • | December 29, 2016 |
Established KB Private Equity Fund III as a second-tier subsidiary
| • | December 30, 2016 |
Purchased new shares of KB Insurance in a rights offering, which increased the Company’s shareholding in KB Insurance from 33.29% to 39.81%
| • | December 30, 2016 |
Merged KB Investment & Securities with and into Hyundai Securities, with Hyundai Securities as the surviving entity, then changed its name to KB Securities Co., Ltd. (“KB Securities”)
| • | February 8, 2017 |
Added KB KOLAO LEASING Co., Ltd. as a second-tier subsidiary
| • | March 8, 2017 |
Added KB Microfinance Myanmar Co., Ltd. as a second-tier subsidiary
| • | May 19, 2017 |
Acquired additional shares of KB Insurance in a tender offer, which increased the Company’s shareholding in KB Insurance from 39.81% to 94.30%
| • | May 19, 2017 |
Acquired additional shares of KB Capital in a tender offer, which increased the Company’s shareholding in KB Capital from 52.02% to 79.70%
| • | July 7, 2017 |
Converted KB Insurance and KB Capital into wholly-owned subsidiaries of the Company through comprehensive stock swaps
| • | September 29, 2017 |
Added KB Asset Management Singapore Pte. Ltd. as a second-tier subsidiary (changed from a second-tier subsidiary of KB Securities to a first-tier subsidiary of KB Asset Management Co., Ltd.)
| • | October 9, 2017 |
Added KB SECURITIES VIETNAM JOINT STOCK COMPANY (formerly MARITIME SECURITIES INCORPORATION) as a second-tier subsidiary
| • | October 16, 2017 |
Disposed of Hyundai Savings Bank, Co., Ltd., a second-tier subsidiary
| • | December 22, 2017 |
Disposed of Hyundai Asset Management, Co., Ltd., a second-tier subsidiary
| • | January 17, 2018 |
Added KB-TS Technology Venture Private Equity Fund as a second-tier subsidiary (equity interests of 16%, 30% and 10% held by KB Securities, Kookmin Bank and KB Capital, respectively)
| • | July 6, 2018 |
Added KB Daehan Specialized Bank PLC. as a second-tier subsidiary
| • | August 21, 2018 |
Added KBAM Shanghai Advisory Services Co., Ltd. as a second-tier subsidiary
| • | December 31, 2018 |
Added KB-Stonebridge Secondary Private Equity Fund as a second-tier subsidiary
| • | January 9, 2019 |
Added KB-SPROTT Renewable Private Equity Fund I as a second-tier subsidiary
| • | September 17, 2019 |
Added KB-SP Private Equity Fund IV as a second-tier subsidiary
| • | February 28, 2020 |
Added KB-NAU Special Situation Corporate Restructuring Private Equity Fund as a second-tier subsidiary
| • | April 10, 2020 |
Added PRASAC Microfinance Institution PLC. as a second-tier subsidiary Added PT Sunindo Kookmin Best Finance as a second-tier subsidiary
| • | May 18, 2020 |
| • | July 3, 2020 |
Added PT KB Finansia Multi Finance as a second-tier subsidiary
| • | August 31, 2020 |
Added Prudential Life Insurance Company of Korea, Ltd. (“Prudential Life Insurance”) as a first-tier subsidiary
| • | September 2, 2020 |
Added PT Bank Bukopin Tbk as a second-tier subsidiary (renamed PT Bank KB Bukopin, Tbk. on February 8, 2021)
| • | October 28, 2020 |
Added KB Material and Parts Private Equity Fund I as a second-tier subsidiary
| • | December 4, 2020 |
Added FineKB Private Equity Fund I as a second-tier subsidiary
| • | December 16, 2020 |
Added KB FINA JOINT STOCK COMPANY as a second-tier subsidiary
| • | December 23, 2020 |
Added KB Bank Myanmar Co., Ltd. as a second-tier subsidiary
| • | January 15, 2021 |
Added KB Bio Private Equity Fund III as a second-tier subsidiary
| • | January 29, 2021 |
Added J Fintech Co., Ltd as a second-tier subsidiary (renamed KB J Capital Co., Ltd. on February 16, 2021)
| • | March 2, 2021 |
Added PT KB Data Systems Indonesia as a second-tier subsidiary
| • | September 23, 2021 |
Added KB Bio Global Expansion Private Equity Fund I as a second-tier subsidiary
| • | October 8, 2021 |
Added KB Healthcare Co., Ltd. as a second-tier subsidiary
| • | December 24, 2021 |
Added KB Co-investment Private Equity Fund I as a second-tier subsidiary
| • | February 14, 2022 |
Added PT KB Valbury Sekuritas as a second-tier subsidiary
| • | April 22, 2022 |
Added KB-Badgers Future Mobility ESG Private Equity Fund I as a second-tier subsidiary
| • | May 10, 2022 |
Added KB Life Partners Co., Ltd. as a second-tier subsidiary
| • | August 19, 2022 |
Added KB Mezzanine Capital Private Equity Fund IV as a second-tier subsidiary
| • | December 26, 2022 |
Added i-Finance Leasing Plc. as a second-tier subsidiary
| • | December 26, 2022 |
Renamed Prudential Life Insurance Company of Korea, Ltd. to KB Life Insurance Co., Ltd.
| • | January 1, 2023 |
Merged KB Life Insurance with and into KB Life Insurance Co., Ltd. (former Prudential Life Insurance Company of Korea, Ltd.)
| • | June 30, 2023 |
Withdrew KB Credit Information Co., Ltd. as a first-tier subsidiary and added it as a second-tier subsidiary as it became a subsidiary of KB Kookmin Card Co., Ltd. (a first-tier subsidiary)
| • | August 4, 2023 |
Merged KB Bank Cambodia Plc. with and into PRASAC Microfinance Institution Plc.; renamed the merged entity KB PRASAC BANK PLC. and converted it into a commercial bank.
| • | October 5, 2023 |
Transferred KB Golden Life Care Co., Ltd. from being a subsidiary of KB Insurance Co., Ltd. to a subsidiary of KB Life Insurance Co., Ltd.
| • | October 6, 2023 |
Added U-KB Credit No.1 Private Equity I as a second-tier subsidiary.
| • | December 13, 2023 |
Added Teamwink Inc. as a second-tier subsidiary.
| • | December 26, 202 |
3Added FineKB Private Equity Fund II as a second-tier subsidiary.
| 1.3. | Overview of the Business Group |
| (As of December 31, 2023) | ||||||
| Type |
Name of Company |
Controlling Company |
Remarks |
|||
| Holding Company |
KB Financial Group | - | Listed | |||
| 1st Tier Subsidiaries |
Kookmin Bank | KB Financial Group | Not listed | |||
| KB Securities Co., Ltd. | KB Financial Group | Not listed | ||||
| KB Insurance Co., Ltd. | KB Financial Group | Not listed | ||||
| KB Kookmin Card Co., Ltd. | KB Financial Group | Not listed | ||||
| KB Life Insurance Co., Ltd. | KB Financial Group | Not listed | ||||
| KB Asset Management Co., Ltd. | KB Financial Group | Not listed | ||||
| KB Capital Co., Ltd. | KB Financial Group | Not listed | ||||
| KB Real Estate Trust Co., Ltd. | KB Financial Group | Not listed | ||||
| KB Savings Bank Co., Ltd. | KB Financial Group | Not listed | ||||
| KB Investment Co., Ltd. | KB Financial Group | Not listed | ||||
| KB Data Systems Co., Ltd. | KB Financial Group | Not listed | ||||
| 2nd Tier Subsidiaries |
PT Bank KB Bukopin Tbk.(1) | Kookmin Bank | Listed (Overseas) |
|||
| Kookmin Bank (China) Ltd. | Kookmin Bank | Not listed (Overseas) |
||||
| KB Microfinance Myanmar Co., Ltd. | Kookmin Bank | Not listed (Overseas) |
||||
| KB Bank Myanmar Co., Ltd. | Kookmin Bank | Not listed (Overseas) |
||||
| KB Prasac Bank Plc. | Kookmin Bank | Not listed (Overseas) |
||||
| KBFG Securities America Inc. | KB Securities | Not listed (Overseas) |
||||
| KB Securities Hong Kong Ltd. | KB Securities | Not listed (Overseas) |
||||
| KB SECURITIES VIETNAM JOINT STOCK COMPANY | KB Securities | Not listed (Overseas) |
||||
| KB-TS Technology Venture Private Equity Fund | KB Securities | Not listed | ||||
| KB-Stonebridge Secondary Private Equity Fund | KB Securities | Not listed | ||||
| KB-SPROTT Renewable Private Equity Fund I | KB Securities | Not listed | ||||
| KB-SP Private Equity Fund IV | KB Securities | Not listed | ||||
| KB-NAU Special Situation Corporate Restructuring Private Equity Fund | KB Securities | Not listed | ||||
| KB Material and Parts Private Equity Fund I | KB Securities | Not listed | ||||
| U-KB Credit No.1 Private Equity I | KB Securities | Not listed | ||||
| KB FINA JOINT STOCK COMPANY | KB Securities | Not listed (Overseas) |
||||
| PT KB Valbury Sekuritas | KB Securities | Not listed (Overseas) |
||||
| KB Claims Survey & Adjusting Co., Ltd. | KB Insurance | Not listed | ||||
| KB Sonbo CNS | KB Insurance | Not listed | ||||
| Leading Insurance Services, Inc. | KB Insurance | Not listed (Overseas) |
||||
| KBFG Insurance (China) Co., Ltd.(2) | KB Insurance | Not listed (Overseas) |
||||
| PT. KB Insurance Indonesia | KB Insurance | Not listed (Overseas) |
||||
| KB Healthcare Co., Ltd. | KB Insurance | Not listed | ||||
| KB Credit Information Co., Ltd. | KB Kookmin Card | Not listed | ||||
| KB Daehan Specialized Bank PLC. | KB Kookmin Card | Not listed (Overseas) |
||||
| PT KB Finansia Multi Finance | KB Kookmin Card | Not listed (Overseas) |
||||
| KB J Capital Co., Ltd(3) | KB Kookmin Card | Not listed (Overseas) |
||||
| i-Finance Leasing Plc. | KB Kookmin Card | Not listed (Overseas) |
||||
| KB Life Partners Co., Ltd. | KB Life Insurance | Not listed | ||||
| KB Golden Life Care Co., Ltd. | KB Life Insurance | Not listed | ||||
| KB Asset Management Singapore Pte. Ltd. | KB Asset Management | Not listed (Overseas) |
||||
| KBAM Shanghai Advisory Services Co., Ltd. | KB Asset Management | Not listed (Overseas) |
||||
| KB Co-investment Private Equity Fund I | KB Asset Management | Not listed | ||||
| KB Mezzanine Capital Private Equity Fund IV | KB Asset Management | Not listed | ||||
| KB KOLAO LEASING Co., Ltd. | KB Capital | Not listed (Overseas) |
||||
| PT Sunindo Kookmin Best Finance | KB Capital | Not listed (Overseas) |
||||
| Teamwink Inc. | KB Capital | Not listed | ||||
| KoFC Value-up Private Equity Fund | KB Investment | Not listed | ||||
| FineKB Private Equity Fund I | KB Investment | Not listed | ||||
| KB Bio Global Expansion Private Equity Fund I | KB Investment | Not listed | ||||
| KB-Badgers Future Mobility ESG Private Equity Fund I | KB Investment | Not listed | ||||
| FineKB Private Equity Fund II | KB Investment | Not listed |
| PT KB Data Systems Indonesia | KB Data Systems | Not listed (Overseas) |
||||
| 3rd Tier Subsidiaries |
PT Bukopin Finance | PT Bank KB Bukopin Tbk. | Not listed (Overseas) |
|||
| PT Bank Syariah Bukopin | PT Bank KB Bukopin Tbk. | Not listed (Overseas) |
||||
| PT KB Valbury Capital Management | PT KB Valbury Sekuritas | Not listed (Overseas) |
||||
| Mangrove Master Fund | KB Asset Management Singapore Pte. Ltd. | Not listed (Overseas) |
||||
| Mangrove Feeder Fund | KB Asset Management Singapore Pte. Ltd. | Not listed (Overseas) |
||||
| Notes: | (1) Renamed to PT Bank KB Bukopin, Tbk. from PT Bank Bukopin, Tbk. on February 8, 2021. |
| (2) Renamed to KBFG Insurance (China) Co., Ltd. from LIG Insurance (China) Co., Ltd. on April 9, 2021. |
| (3) Renamed to KB J Capital Co., Ltd from J Fintech Co., Ltd on February 16, 2021. |
| 1.4. | Capital Structure |
| 1.4.1. | Common Shares |
Changes in Capital
| (As of December 31, 2023) | (Unit: Won, shares) | |||||||||||||||
| Date |
Type |
Number of Shares Issued or Cancelled |
Par Value | Price | Remarks |
|||||||||||
| September 29, 2008 |
Common Stock | 356,351,693 | 5,000 | 48,444 | Establishment of the Company | |||||||||||
| September 2, 2009 |
Common Stock | 30,000,000 | 5,000 | 37,250 | % increase in number of common shares: 8.41865% | |||||||||||
| October 19, 2016 |
Common Stock | 31,759,844 | 5,000 | 35,474 | % increase in number of common shares: 8.22045% | |||||||||||
| December 12, 2019 |
Common Stock | 2,303,617 | 5,000 | — | Share Cancellation(1) | |||||||||||
| February 14, 2022 |
Common Stock | 3,455,426 | 5,000 | — | Share Cancellation(1) | |||||||||||
| August 1, 2022 |
Common Stock | 3,455,426 | 5,000 | — | Share Cancellation(1) | |||||||||||
| April 4, 2023 |
Common Stock | 5,385,996 | 5,000 | — | Share Cancellation(1) | |||||||||||
| Note: (1) | The cancelled shares constituted treasury shares acquired pursuant to a resolution of the board of directors of the Company within the limits of profit available for dividend payment, and as such, there was no change in paid-in capital. |
Number of Shares
| (As of December 31, 2023) | (Unit: shares) | |||||||||||||
| Type | ||||||||||||||
| Common Shares | Preferred Shares | Total | Remarks | |||||||||||
| Shares Authorized for Issuance |
1,000,000,000 | — | 1,000,000,000 | As specified in the Articles of Incorporation |
||||||||||
| Total Shares Issued (A) |
418,111,537 | — | 418,111,537 | — | ||||||||||
| Decrease in Number of Shares (B) |
14,600,465 | — | 14,600,465 | — | ||||||||||
| 1. Capital Reduction |
— | — | — | — | ||||||||||
| 2. Cancellation |
14,600,465 | — | 14,600,465 | Treasury Shares | ||||||||||
| 3. Redemption |
— | — | — | — | ||||||||||
| 4. Other |
— | — | — | — | ||||||||||
| Shares Issued as of December 31, 2023 (C=A-B) |
403,511,072 | — | 403,511,072 | — | ||||||||||
| Treasury Shares (D) |
24,847,247 | — | 24,847,247 | — | ||||||||||
| Shares Outstanding (C-D) |
378,663,825 | — | 378,663,825 | — | ||||||||||
| Notes: (1) | The treasury shares above include five million treasury shares that the exchangeable bonds issued by the Company on June 30, 2020 can be exchanged for. Such treasury shares were disposed upon the exercise of the exchange option of the exchangeable bonds on February 14, 2024. |
| (2) | On February 7, 2023, the board of directors of the Company resolved to acquire and cancel certain of the Company’s treasury shares and accordingly, the Company acquired 5,385,996 shares between February 8, 2023 and March 27, 2023 (33 business days) and cancelled all such treasury shares on April 4, 2023. The cancelled shares were within the limits of profit available for dividend payment, and as such, there was no change in paid-in capital. |
| (3) | On July 25, 2023, the board of directors of the Company resolved to acquire and cancel certain of the Company’s treasury shares. Pursuant to such resolution, the Company entered into a trust agreement with Samsung Securities Co., Ltd. for the acquisition of Won 300 billion worth of treasury shares between August 1, 2023 and July 31, 2024 and has completed such acquisition on December 5, 2023, having acquired a total of 5,584,514 treasury shares. The Company plans to cancel such treasury shares after the trust agreement expires on July 31, 2024. |
| (4) | On February 7, 2024, the board of directors of the Company resolved to acquire and cancel certain of the Company’s treasury shares. Pursuant to such resolution, the Company entered into a trust agreement with Samsung Securities Co., Ltd. for the acquisition of Won 320 billion worth of treasury shares between February 8, 2024 and August 7, 2024, and is currently in the process of acquiring such shares. For more information, please refer to the Company’s report on Form 6-K furnished to the Securities and Exchange Commission on February 7, 2024. |
1.4.2. Voting Rights
| (As of December 31, 2023) | (Unit: shares) | |||||||
| Items |
Number of Shares | Notes | ||||||
| Total number of issued shares |
Common shares | 403,511,072 | — | |||||
| Preferred shares | — | — | ||||||
| Shares without voting rights |
Common shares | 24,847,290 | Treasury shares | |||||
| Preferred shares | — | — | ||||||
| Shares for which voting rights cannot be exercised pursuant to the Articles of Incorporation |
— | — | — | |||||
| Shares for which voting rights are restricted under relevant laws and regulations |
— | — | — | |||||
| Shares with restored voting rights |
— | — | — | |||||
| Total shares for which voting rights may be exercised |
Common shares | 378,663,782 | — | |||||
| Preferred shares | — | — | ||||||
| Notes: (1) | The treasury shares above include five million treasury shares that the exchangeable bonds issued by the Company on June 30, 2020 can be exchanged for. Such treasury shares were disposed upon the exercise of the exchange option of the exchangeable bonds on February 14, 2024. |
| (2) | On February 7, 2023, the board of directors of the Company resolved to acquire and cancel certain of the Company’s treasury shares and accordingly, the Company acquired its treasury shares from February 8, 2023 to March 29, 2023 and cancelled such shares on April 4, 2023. For more information, please refer to the Company’s report on Form 6-K furnished to the Securities and Exchange Commission on March 29, 2023. |
| (3) | On July 25, 2023, the board of directors of the Company resolved to acquire and cancel certain of the Company’s treasury shares. Pursuant to such resolution, the Company entered into a trust agreement with Samsung Securities Co., Ltd. for the acquisition of Won 300 billion worth of treasury shares between August 1, 2023 and July 31, 2024 and has completed such acquisition on December 5, 2023, having acquired a total of 5,584,514 treasury shares. The Company plans to cancel such treasury shares after the trust agreement expires on July 31, 2024. |
| 1.5. | Dividends |
KB Financial Group aims to manage its CET1 target ratio at a minimum of around 13% (the regulatory requirement of 10.5% plus a management buffer of 250 bps), in order to meet the regulatory requirement of 10.5% even in the face of severe economic shocks and other macroeconomic variables, including fluctuations in exchange rates and interest rates.
In order to manage such CET1 target ratio, the Group plans to benchmark systemic growth indicators, such as nominal GDP growth rates, to set its mid-term goals for asset growth. However, the Group may modify such goals to better fulfill the Group’s public role and to attain sustainable growth in light of changes to the macroeconomic and regulatory environment, the importance and role of the financial industry, including banks, in the domestic economy, the Group’s public duty to maintain the stability of the social system, or the Group’s business objectives such as investments in new businesses or M&A initiatives.
Generally, the Group’s policy is to utilize the excess capital exceeding its target CET1 ratio of 13% to actively return value to its shareholders. Although the level of shareholder returns may vary depending on changes in the regulatory environment, volatility in the financial market, and the Group’s business objectives, the Group will strive to maximize its shareholder returns and shareholders’ value in every situation.
As a leading financial institution in Korea, KB Financial Group will strive to perform its public duties as a bank in times of need, such as stabilizing the financial system and supporting the soft landing of the economy during economic fluctuations. The Group will take into consideration the interests of various stakeholders, including shareholders, employees, consumers, and local communities, to achieve sustainable growth while also enhancing shareholder value.
Based on its solid fundamentals and the highest level of capital in the industry, the Group achieved a shareholder return rate of approximately 37%, including through share buybacks and cancellations. The Group plans to actively continue such progressive shareholder return policy.
KB Financial Group also plans to provide a stable payout to the shareholders, taking into consideration the global best practices for dividend stability by maintaining at least the previous year’s level of cash dividends while gradually expanding the dividend per share and engaging in share buybacks and cancellations. However, such plans may be modified depending on economic conditions, regulatory environment, or the Group’s business objectives.
| (Unit: in millions of Won, except per share amounts and percentages) | ||||||||||||||||
| Items |
January 1, 2023 to December 31, 2023(1) |
January 1, 2022 to December 31, 2022(2) |
January 1, 2021 to December 31, 2021(3) |
|||||||||||||
| Par value per share (Won) |
|
5,000 | 5,000 | 5,000 | ||||||||||||
| (Consolidated) Net income |
|
4,631,932 | 4,394,830 | 4,409,543 | ||||||||||||
| (Consolidated) Earnings per share (Won) |
|
11,580 | 10,955 | 11,134 | ||||||||||||
| Total cash dividends |
|
1,173,937 | 1,149,421 | 1,145,525 | ||||||||||||
| Total stock dividends |
|
— | — | — | ||||||||||||
| (Consolidated) Cash dividend payout ratio (%) |
|
25.3 | 26.0 | 26.0 | ||||||||||||
| Cash dividend yield (%) |
Common shares | 4.9 | 5.8 | 5.2 | ||||||||||||
| — | — | — | — | |||||||||||||
| Stock dividend yield (%) |
Common shares | — | — | — | ||||||||||||
| — | — | — | — | |||||||||||||
| Cash dividend per share (Won) |
Common shares | 3,060 | 2,950 | 2,940 | ||||||||||||
| — | — | — | ||||||||||||||
| Stock dividend per share |
Common shares | — | — | |||||||||||||
| — | — | — | ||||||||||||||
| Notes: |
(1) | Includes a quarterly dividend amount of Won 195,967 million (Won 510 per common share) for the first quarter of fiscal year 2023, a quarterly dividend amount of Won 195,967 million (Won 510 per common share) in the second quarter of fiscal year 2023, and a quarterly dividend amount of Won 194,998 million (Won 510 per common share) in the third quarter of fiscal year 2023 paid in 2023, and an expected annual dividend amount of Won 587,006 million (Won 1,530 per common share). |
| (2) | Includes a quarterly dividend amount of Won 194,817 million (Won 500 per common share) in the first quarter of fiscal year 2022, a quarterly dividend amount of Won 194,817 million (Won 500 per common share) in the second quarter of fiscal year 2022, and a quarterly dividend amount of Won 194,817 million (Won 500 per common share) in the third quarter of fiscal year 2022. |
| (3) | Includes a quarterly dividend amount of Won 292,226 million (Won 750 per common share) in the second quarter of fiscal year 2021. |
| 1.6. | Amendments to the Articles of Incorporation |
The Company’s Articles of Incorporation were most recently amended on March 24, 2023.
| Date |
Shareholder meeting through which the |
Major changes |
Notes |
|||
| March 24, 2023 | Annual General Meeting of Shareholders for Fiscal Year 2022 | Establishment of: (i) the basis for determining the record date for the payment of dividends through a resolution of the Board of Directors, and (ii) an equal dividend payment policy with respect to shares in the same class, through the amendment of articles 10, 11, 15, 16, 17, 18, 19, 20, 49, 59, and 60 | Establishment of the basis for determining the record date for the payment of dividends through a resolution of the Board of Directors |
| 2. | Business |
| 2.1. | Results of Operations |
| (Unit: in millions of Won) | ||||||||||||
| For the year ended December 31, 2023 |
For the year ended December 31, 2022 |
For the year ended December 31, 2021 |
||||||||||
| Net interest income |
12,141,717 | 11,515,325 | 11,229,572 | |||||||||
| Interest income |
29,145,079 | 20,787,577 | 15,210,878 | |||||||||
| Interest expense |
(17,003,362) | (9,272,252) | (3,981,306) | |||||||||
| Net fee and commission income |
3,673,524 | 3,514,902 | 3,625,583 | |||||||||
| Fee and commission income |
5,368,074 | 5,125,930 | 5,323,606 | |||||||||
| Fee and commission expense |
(1,694,550) | (1,611,028) | (1,698,023) | |||||||||
| Insurance service result |
1,422,952 | 1,311,091 | 556,711 | |||||||||
| Insurance income |
10,978,808 | 10,072,490 | 16,107,858 | |||||||||
| Insurance expense |
(9,555,856) | (8,761,399) | (15,551,147) | |||||||||
| Net gains on financial assets/liabilities at fair value through profit or loss |
2,163,065 | (1,139,818) | 995,304 | |||||||||
| Other insurance finance income (expense) |
(459,135) | 841,227 | — | |||||||||
| Net other operating expenses |
(2,712,989) | (2,262,123) | (1,923,567) | |||||||||
| General and administrative expenses |
(6,647,406) | (6,643,654) | (7,200,853) | |||||||||
| Operating profit before provision for credit losses |
9,581,728 | 7,136,950 | 7,282,750 | |||||||||
| Provision for credit losses |
(3,146,409) | (1,847,775) | (1,185,133) | |||||||||
| Net operating profit |
6,435,319 | 5,289,175 | 6,097,617 | |||||||||
| Notes: |
(1) | Based on K-IFRS (on a consolidated basis). |
| (2) | KB Financial Group’s results of operations for the year ended December 31, 2023 reflect the application of K-IFRS 1117 (Insurance Contracts), a new accounting standard that became effective on January 1, 2023. For comparison purposes, the figures for the year ended December 31, 2022 above have been restated retrospectively to reflect the application of K-IFRS 1117. However, the figures for the year ended December 31, 2021 have not been restated retrospectively and are based on K-IFRS 1104 (Insurance Contracts). Accordingly, such figures may not be directly comparable to the figures for the years ended December 31, 2023 and 2022. |
| 2.2. | Sources and Uses of Funds |
2.2.1. Sources of Funds
| (Unit: in millions of Won) | ||||||||||||||||||||||||||||||||||||||
| For the year ended December 31, 2023 |
For the year ended December 31, 2022 |
For the year ended December 31, 2021 |
||||||||||||||||||||||||||||||||||||
| Average Balance |
Interest Rate (%) |
Ratio (%) |
Average Balance |
Interest Rate (%) |
Ratio (%) |
Average Balance |
Interest Rate (%) |
Ratio (%) |
||||||||||||||||||||||||||||||
| Won Currency |
Deposits |
338,691,272 | 2.52 | 45.63 | 333,078,280 | 1.27 | 47.87 | 309,428,469 | 0.74 | 49.09 | ||||||||||||||||||||||||||||
| Certificate of deposit |
10,417,992 | 4.07 | 1.40 | 5,511,822 | 2.35 | 0.79 | 3,618,303 | 0.87 | 0.57 | |||||||||||||||||||||||||||||
| Borrowings |
33,891,286 | 3.27 | 4.57 | 31,064,028 | 1.91 | 4.46 | 24,900,706 | 0.96 | 3.95 | |||||||||||||||||||||||||||||
| Call money |
1,384,033 | 3.52 | 0.19 | 1,314,525 | 2.02 | 0.19 | 1,324,902 | 0.65 | 0.21 | |||||||||||||||||||||||||||||
| Debentures |
56,008,914 | 3.36 | 7.55 | 58,290,290 | 2.39 | 8.38 | 57,214,310 | 1.82 | 9.08 | |||||||||||||||||||||||||||||
| Others |
22,355,370 | 4.37 | 3.01 | 20,866,612 | 2.34 | 3.00 | 20,305,205 | 0.84 | 3.22 | |||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
| Subtotal |
462,748,867 | 2.81 | 62.35 | 450,125,557 | 1.52 | 64.69 | 416,791,895 | 0.91 | 66.12 | |||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
| Foreign Currency |
Deposits |
36,526,597 | 3.88 | 4.92 | 34,076,754 | 2.09 | 4.90 | 26,607,162 | 1.70 | 4.22 | ||||||||||||||||||||||||||||
| Borrowings |
24,087,170 | 3.77 | 3.25 | 22,970,783 | 1.90 | 3.30 | 12,976,574 | 1.16 | 2.06 | |||||||||||||||||||||||||||||
| Call money |
2,014,719 | 3.19 | 0.27 | 1,572,913 | 1.87 | 0.23 | 995,957 | 0.75 | 0.16 | |||||||||||||||||||||||||||||
| Debentures |
13,607,050 | 3.14 | 1.83 | 11,978,139 | 2.09 | 1.72 | 8,544,738 | 1.49 | 1.36 | |||||||||||||||||||||||||||||
| Others |
1,067,253 | 3.51 | 0.14 | 1,685,165 | 1.46 | 0.24 | 2,029,862 | 0.82 | 0.32 | |||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
| Subtotal |
77,302,789 | 3.69 | 10.41 | 72,283,754 | 2.01 | 10.39 | 51,154,293 | 1.47 | 8.12 | |||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
| Others | Total shareholders’ equity |
95,694,663 | — | 12.89 | 67,612,953 | — | 9.72 | 46,705,724 | — | 7.41 | ||||||||||||||||||||||||||||
| Allowances |
1,061,174 | — | 0.14 | 1,128,687 | — | 0.16 | 1,040,835 | — | 0.17 | |||||||||||||||||||||||||||||
| Others |
105,428,693 | — | 14.21 | 104,628,576 | — | 15.04 | 114,646,087 | — | 18.18 | |||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
| Subtotal |
202,184,530 | — | 27.24 | 173,370,216 | — | 24.92 | 162,392,646 | — | 25.76 | |||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
| Total |
742,236,186 | — | 100.00 | 695,779,527 | — | 100.00 | 630,338,834 | — | 100.00 | |||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
| Notes: |
(1) | Based on K-IFRS (on a consolidated basis). |
| (2) | The figures for the year ended December 31, 2023 reflect the application of K-IFRS 1117 (Insurance Contracts), a new accounting standard that became effective on January 1, 2023. The figures for the year ended December 31, 2022 above have been restated retrospectively to reflect the application of K-IFRS 1117. However, the figures for the year ended December 31, 2021 have not been restated retrospectively and are based on K-IFRS 1104 (Insurance Contracts). Accordingly, such figures may not be directly comparable to the figures for the years ended December 31, 2023 and 2022. |
2.2.2. Uses of Funds
| (Unit: in millions of Won) | ||||||||||||||||||||||||||||||||||||||
| For the year ended December 31, 2023 |
For the year ended December 31, 2022 |
For the year ended December 31, 2021 |
||||||||||||||||||||||||||||||||||||
| Average Balance |
Interest Rate (%) |
Ratio (%) |
Average Balance |
Interest Rate (%) |
Ratio (%) |
Average Balance |
Interest Rate (%) |
Ratio (%) |
||||||||||||||||||||||||||||||
| Won Currency |
Due from banks | 16,471,530 | 0.92 | 2.22 | 16,038,688 | 0.63 | 2.31 | 15,212,672 | 0.30 | 2.41 | ||||||||||||||||||||||||||||
| Securities | 199,538,723 | 2.72 | 26.88 | 166,950,909 | 1.17 | 23.99 | 147,320,309 | 1.31 | 23.37 | |||||||||||||||||||||||||||||
| Loans | 370,190,671 | 4.81 | 49.88 | 361,188,713 | 3.51 | 51.91 | 340,131,319 | 2.80 | 53.96 | |||||||||||||||||||||||||||||
| Guarantee payments under payment guarantee |
5,114 | 0.81 | — | 6,891 | 0.19 | — | 5,053 | 1.31 | — | |||||||||||||||||||||||||||||
| Call loan |
286,735 | 3.62 | 0.04 | 694,196 | 2.02 | 0.10 | 695,721 | 0.67 | 0.11 | |||||||||||||||||||||||||||||
| Private placement corporate bonds |
1,206,821 | 2.90 | 0.16 | 828,547 | 3.43 | 0.12 | 882,497 | 3.02 | 0.14 | |||||||||||||||||||||||||||||
| Credit cards | 22,789,066 | 7.93 | 3.07 | 22,069,290 | 6.94 | 3.17 | 19,862,308 | 7.09 | 3.15 | |||||||||||||||||||||||||||||
| Others | 3,415,038 | 17.44 | 0.46 | 4,438,987 | 9.45 | 0.64 | 4,193,384 | 6.53 | 0.67 | |||||||||||||||||||||||||||||
| Allowance | (3,561,894 | ) | — | (0.48 | ) | (2,814,578 | ) | — | (0.40 | ) | (2,480,441 | ) | — | (0.39 | ) | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
| Subtotal |
610,341,804 | 4.23 | 82.23 | 569,401,643 | 2.94 | 81.84 | 525,822,822 | 2.51 | 83.42 | |||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
| Foreign Currency |
Due from banks |
9,292,372 | 2.28 | 1.25 | 9,239,891 | 0.76 | 1.33 | 6,868,969 | 0.38 | 1.09 | ||||||||||||||||||||||||||||
| Securities | 25,883,766 | 4.16 | 3.49 | 20,610,143 | 1.81 | 2.96 | 16,052,962 | 3.90 | 2.55 | |||||||||||||||||||||||||||||
| Loans |
39,403,960 | 6.97 | 5.31 | 37,267,941 | 5.32 | 5.36 | 26,409,776 | 5.05 | 4.19 | |||||||||||||||||||||||||||||
| Call loan |
7,399,847 | 4.49 | 1.00 | 8,829,592 | 2.12 | 1.27 | 3,275,072 | 0.45 | 0.52 | |||||||||||||||||||||||||||||
| Bills bought |
2,047,390 | 5.58 | 0.28 | 2,541,838 | 2.32 | 0.37 | 1,940,984 | 0.73 | 0.31 | |||||||||||||||||||||||||||||
| Allowance |
(1,322,830 | ) | — | (0.18 | ) | (1,021,192 | ) | — | (0.15 | ) | (978,088 | ) | — | (0.16 | ) | |||||||||||||||||||||||
| Others |
3,070,684 | — | 0.41 | 2,248,320 | — | 0.32 | 2,229,707 | — | 0.35 | |||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
| Subtotal |
85,775,189 | 5.30 | 11.56 | 79,716,533 | 3.38 | 11.46 | 55,799,382 | 3.63 | 8.85 | |||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
| Others |
Cash |
1,681,170 | — | 0.23 | 1,831,093 | — | 0.26 | 1,917,967 | — | 0.30 | ||||||||||||||||||||||||||||
| Fixed assets held for business |
8,813,616 | — | 1.19 | 8,077,249 | — | 1.16 | 8,130,268 | — | 1.29 | |||||||||||||||||||||||||||||
| Others |
35,624,407 | — | 4.79 | 36,753,009 | — | 5.28 | 38,668,395 | — | 6.14 | |||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
| Subtotal |
46,119,193 | — | 6.21 | 46,661,351 | — | 6.70 | 48,716,630 | — | 7.73 | |||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
| Total |
742,236,186 | — | 100.00 | 695,779,527 | — | 100.00 | 630,338,834 | — | 100.00 | |||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
| Notes: |
(1) | Based on K-IFRS (on a consolidated basis). |
| (2) | The figures for the year ended December 31, 2023 reflect the application of K-IFRS 1117 (Insurance Contracts), a new accounting standard that became effective on January 1, 2023. The figures for the year ended December 31, 2022 above have been restated retrospectively to reflect the application of K-IFRS 1117. However, the figures for the year ended December 31, 2021 have not been restated retrospectively and are based on K-IFRS 1104 (Insurance Contracts). Accordingly, such figures may not be directly comparable to the figures for the years ended December 31, 2023 and 2022. |
2.3. Other Information to Consider in Making an Investment Decision
2.3.1. Capital Adequacy
| KB Financial Group | (Unit: in billions of Won, except percentages) | |||||||||||
| As of December 31, 2023 | As of December 31, 2022 | As of December 31, 2021 | ||||||||||
| Total capital (A) |
53,744 | 48,970 | 45,883 | |||||||||
| Risk-weighted assets (B) |
321,319 | 302,968 | 290,914 | |||||||||
| BIS ratio (A/B) |
16.73% | 16.16% | 15.77% | |||||||||
| Notes: | (1) Calculated in accordance with Basel III. |
| Kookmin Bank | (Unit: in billions of Won, except percentages) | |||||||||||
| As of December 31, 2023 | As of December 31, 2022 | As of December 31, 2021 | ||||||||||
| Total capital (A) |
39,040 | 36,233 | 35,572 | |||||||||
| Risk-weighted assets (B) |
215,962 | 207,558 | 203,569 | |||||||||
| BIS ratio (A/B) |
18.08% | 17.46% | 17.47% | |||||||||
| Notes: | (1) Calculated in accordance with Basel III. |
| KB Securities Co., Ltd. | (Unit: in billions of Won, except percentages) | |||||||||||
|
As of December 31, 2023 |
As of December 31, 2022 |
As of December 31, 2021 |
||||||||||
| Net operating capital (A) |
5,058 | 4,554 | 3,982 | |||||||||
| Total amount at risk (B) |
2,934 | 2,655 | 2,072 | |||||||||
| Maintenance equity margin (C) |
134 | 134 | 134 | |||||||||
| Net capital ratio (A-B)/(C) |
1,582.09% | 1,414.74% | 1,422.34% | |||||||||
| Capital surplus (A-B) |
2,124 | 1,899 | 1,909 | |||||||||
| KB Insurance Co., Ltd. | (Unit: in billions of Won, except percentages) | |||||||||||
| As of December 31, 2023 | As of December 31, 2022 | As of December 31, 2021 | ||||||||||
| Available capital (A) |
11,658 | 4,608 | 4,349 | |||||||||
| Required capital (B) |
5,396 | 2,684 | 2,424 | |||||||||
| Capital Adequacy ratio (A/B)(2) |
216.04% | 171.66% | 179.39% | |||||||||
| Notes: |
(1) | The figures as of December 31, 2023 are preliminary. |
| (2) | Pursuant to the change in capital adequacy system from the Risk-Based Capital (“RBC”) system to the Korean Insurance Capital Standard (“K-ICS”) system in 2023, the capital adequacy ratio as of December 31, 2023 was calculated based on the K-ICS method, whereas the figures as of December 31, 2022 and December 31, 2021 were calculated based on the RBC method. |
2.3.2. Overseas Credit Ratings
| (As of December 31, 2023) | ||||||||
| Rating Company | Moody’s | S&P | ||||||
| Type | Long-term | Short-term | Long-term | Short-term | ||||
| Credit Rating | A1 | P-1 | A | A-1 | ||||
2.3.3. Domestic Credit Ratings
| Date of Rating |
Type |
Credit Rating |
Rating Company (Rating Range) |
|||
| 1/12/2021 | Debentures | AAA | Korea Ratings (AAA ~ D) / KIS Ratings (AAA ~ D) / NICE Investors Service (AAA ~ D) |
|||
| 2/3/2021 | Contingent Convertible Bonds | AA- | Korea Ratings (AAA ~ D) / KIS Ratings (AAA ~ D) / NICE Investors Service (AAA ~ D) |
|||
| 2/19/2021 | Debentures | AAA | KIS Ratings (AAA ~ D) | |||
| 2/22/2021 | Debentures | AAA | Korea Ratings (AAA ~ D) / NICE Investors Service (AAA ~ D) |
|||
| 5/14/2021 | Contingent Convertible Bonds | AA- | Korea Ratings (AAA ~ D) / KIS Ratings (AAA ~ D) / NICE Investors Service (AAA ~ D) |
|||
| 6/25/2021 | Commercial Paper | A1 | Korea Ratings (A1 ~ D) / KIS Ratings (A1 ~ D) / NICE Investors Service (A1 ~ D) |
|||
| 9/24/2021 | Contingent Convertible Bonds | AA- | Korea Ratings (AAA ~ D) / KIS Ratings (AAA ~ D) / NICE Investors Service (AAA ~ D) |
|||
| 1/27/2022 | Contingent Convertible Bonds | AA- | Korea Ratings (AAA ~ D) / KIS Ratings (AAA ~ D) | |||
| 1/28/2022 | Contingent Convertible Bonds | AA- | NICE Investors Service (AAA ~ D) | |||
| 4/29/2022 | Contingent Convertible Bonds | AA- | Korea Ratings (AAA ~ D) / KIS Ratings (AAA ~ D) / NICE Investors Service (AAA ~ D) |
|||
| 6/2/2022 | Debentures | AAA | Korea Ratings (AAA ~ D) / KIS Ratings (AAA ~ D) / NICE Investors Service (AAA ~ D) |
|||
| 6/20/2022 | Commercial Paper | A1 | Korea Ratings (A1 ~ D) / KIS Ratings (A1 ~ D) / NICE Investors Service (A1 ~ D) |
|||
| 8/16/2022 | Contingent Convertible Bonds | AA- | Korea Ratings (AAA ~ D) / KIS Ratings (AAA ~ D) / NICE Investors Service (AAA ~ D) |
|||
| 2/3/2023 | Contingent Convertible Bonds | AA- | Korea Ratings (AAA ~ D) / KIS Ratings (AAA ~ D) / NICE Investors Service (AAA ~ D) |
|||
| 6/23/2023 | Commercial Paper | A1 | Korea Ratings (A1 ~ D) / KIS Ratings (A1 ~ D) / NICE Investors Service (A1 ~ D) |
2.3.4. Early Retirement Program
To enhance productivity by improving its labor structure, Kookmin Bank implemented a voluntary early retirement program following negotiations with its labor union.
| Subsidiary |
Date of Retirement |
Number of Retired Persons |
||
| January 28, 2019 | 615 | |||
| January 20, 2020 | 462 | |||
| Kookmin Bank | January 30, 2021 | 800 | ||
| January 21, 2022 | 674 | |||
| January 18, 2023 | 713 |
| 3. | Financial Information |
| 3.1. | Consolidated Financial Information |
3.1.1. Consolidated Statements of Financial Position
| (Unit: in millions of Won) |
||||||||||||
| As of December 31, 2023 | As of December 31, 2022 | As of December 31, 2021 | ||||||||||
| Cash and due from financial institutions |
29,836,311 | 32,474,750 | 31,009,374 | |||||||||
| Financial assets at fair value through profit or loss |
77,038,267 | 70,092,497 | 66,005,815 | |||||||||
| Derivative financial assets |
6,157,628 | 9,446,580 | 3,721,370 | |||||||||
| Loans measured at amortized cost |
444,805,287 | 433,038,931 | 417,900,273 | |||||||||
| Financial investments |
122,199,529 | 115,452,659 | 104,847,871 | |||||||||
| Investments in associates and joint ventures |
722,222 | 682,669 | 448,718 | |||||||||
| Insurance assets |
229,640 | 83,304 | — | |||||||||
| Reinsurance assets |
1,655,168 | 1,495,966 | — | |||||||||
| Property and equipment |
4,945,699 | 4,991,467 | 5,239,898 | |||||||||
| Investment property |
4,109,784 | 3,148,340 | 2,514,944 | |||||||||
| Intangible assets |
1,950,858 | 1,858,470 | 3,266,357 | |||||||||
| Net defined benefit assets |
374,090 | 478,934 | 100,083 | |||||||||
| Current income tax assets |
244,317 | 204,690 | 98,798 | |||||||||
| Deferred income tax assets |
274,225 | 188,372 | 159,093 | |||||||||
| Assets held for sale |
208,230 | 211,758 | 237,318 | |||||||||
| Assets of a disposal group held for sale |
— | — | 171,749 | |||||||||
| Other assets |
20,986,897 | 14,815,439 | 28,174,173 | |||||||||
|
|
|
|
|
|
|
|||||||
| Total assets |
715,738,152 | 688,664,826 | 663,895,834 | |||||||||
|
|
|
|
|
|
|
|||||||
| Financial liabilities at fair value through profit or loss |
10,920,435 | 12,271,604 | 12,088,980 | |||||||||
| Derivative financial liabilities |
6,210,639 | 9,509,769 | 3,682,258 | |||||||||
| Deposits |
406,512,434 | 393,928,904 | 372,023,918 | |||||||||
| Borrowings |
69,583,561 | 71,717,366 | 56,912,374 | |||||||||
| Debentures |
69,176,668 | 68,698,203 | 67,430,188 | |||||||||
| Insurance contract liabilities |
50,308,552 | 45,969,434 | 57,165,936 | |||||||||
| Reinsurance contract liabilities |
36,030 | 31,728 | — | |||||||||
| Provisions |
1,444,418 | 933,701 | 808,604 | |||||||||
| Net defined benefit liabilities |
81,869 | 85,745 | 225,521 | |||||||||
| Current income tax liabilities |
145,335 | 998,681 | 662,672 | |||||||||
| Deferred income tax liabilities |
2,179,966 | 1,561,857 | 1,470,981 | |||||||||
| Other liabilities |
40,264,935 | 28,850,033 | 43,130,482 | |||||||||
|
|
|
|
|
|
|
|||||||
| Total liabilities |
656,864,842 | 634,557,025 | 615,601,914 | |||||||||
| As of December 31, 2023 | As of December 31, 2022 | As of December 31, 2021 | ||||||||||
| Equity attributable to shareholders of the parent company |
56,929,804 | 52,827,699 | 47,460,582 | |||||||||
| Share capital |
2,090,558 | 2,090,558 | 2,090,558 | |||||||||
| Hybrid securities |
5,032,803 | 4,434,251 | 2,838,221 | |||||||||
| Capital surplus |
16,647,916 | 16,940,731 | 16,940,231 | |||||||||
| Accumulated other comprehensive income (loss) |
2,295,165 | 1,249,922 | 1,047,274 | |||||||||
| Accumulated other comprehensive income relating to assets of a disposal group held for sale |
— | — | 7,671 | |||||||||
| Retained earnings |
32,029,199 | 28,948,425 | 25,672,815 | |||||||||
| Treasury shares |
(1,165,837 | ) | (836,188 | ) | (1,136,188 | ) | ||||||
| Non-controlling interests |
1,943,506 | 1,280,102 | 833,338 | |||||||||
|
|
|
|
|
|
|
|||||||
| Total equity |
58,873,310 | 54,107,801 | 48,293,920 | |||||||||
|
|
|
|
|
|
|
|||||||
| Total liabilities and equity |
715,738,152 | 688,664,826 | 663,895,834 | |||||||||
|
|
|
|
|
|
|
|||||||
| Number of companies included as a consolidated entity |
371 | 380 | 343 | |||||||||
|
|
|
|
|
|
|
|||||||
| Notes: (1) | The consolidated financial information for the year ended December 31, 2023 is expected to be approved at the annual general meeting of shareholders. If such proposal is rejected or modified, then KB Financial Group will disclose such matter through a separate amendment filing. |
| (2) | The figures as of December 31, 2023 reflect the application of K-IFRS 1117 (Insurance Contracts), and the figures as of December 31, 2022 have been restated retrospectively to reflect the application of K-IFRS 1117. |
| (3) | The figures as of December 31, 2021 are based on K-IFRS 1104 (Insurance Contracts). Accordingly, such figures may not be directly comparable to the figures as of December 31 2023 and 2022. |
3.1.2. Consolidated Statements of Comprehensive Income
| (Unit: in millions of Won, except per share amounts) | ||||||||||||
| For the year ended December 31, 2023 |
For the year ended December 31, 2022 |
For the year ended December 31, 2021 |
||||||||||
| Net interest income |
12,141,717 | 11,515,325 | 11,229,572 | |||||||||
| Interest income |
29,145,079 | 20,787,577 | 15,210,878 | |||||||||
| Interest income from financial instruments at fair value through other comprehensive income and amortized cost |
27,705,759 | 19,841,175 | 14,620,490 | |||||||||
| Interest income from financial instruments at fair value through profit or loss |
1,415,366 | 929,735 | 590,388 | |||||||||
| Insurance finance interest income |
23,954 | 16,667 | — | |||||||||
| Interest expense |
(17,003,362 | ) | (9,272,252 | ) | (3,981,306 | ) | ||||||
| Interest expense |
(15,426,706 | ) | (7,776,631 | ) | (3,981,306 | ) | ||||||
| Insurance finance interest expense |
(1,576,656 | ) | (1,495,621 | ) | — | |||||||
| Net fee and commission income |
3,673,524 | 3,514,902 | 3,625,583 | |||||||||
| Fee and commission income |
5,368,074 | 5,125,930 | 5,323,606 | |||||||||
| Fee and commission expense |
(1,694,550 | ) | (1,611,028 | ) | (1,698,023 | ) | ||||||
| Insurance service result |
1,422,952 | 1,311,091 | 556,711 | |||||||||
| Insurance income |
10,978,808 | 10,072,490 | 16,107,858 | |||||||||
| Insurance income |
10,295,693 | 9,550,101 | 16,107,858 | |||||||||
| Reinsurance income |
683,115 | 522,389 | — | |||||||||
| Insurance expense |
(9,555,856 | ) | (8,761,399 | ) | (15,551,147 | ) | ||||||
| Insurance service expense |
(8,718,748 | ) | (7,989,645 | ) | (15,551,147 | ) | ||||||
| Reinsurance expense |
(837,108 | ) | (771,754 | ) | — | |||||||
| Net gains (losses) on financial assets/liabilities at fair value through profit or loss |
2,163,065 | (1,139,818 | ) | 995,304 | ||||||||
| Other insurance finance income (expenses) from contract held |
(459,135 | ) | 841,227 | — | ||||||||
| Net other operating expenses |
(2,712,989 | ) | (2,262,123 | ) | (1,923,567 | ) | ||||||
| General and administrative expenses |
(6,647,406 | ) | (6,643,654 | ) | (7,200,853 | ) | ||||||
| Operating income before provision for credit losses |
9,581,728 | 7,136,950 | 7,282,750 | |||||||||
| Provision for credit losses |
(3,146,409 | ) | (1,847,775 | ) | (1,185,133 | ) | ||||||
| Net operating income |
6,435,319 | 5,289,175 | 6,097,617 | |||||||||
| Net non-operating income (expenses) |
(264,870 | ) | 160,569 | (16,011 | ) | |||||||
| Share of profit (loss) of associates and joint ventures |
33,110 | (28,755 | ) | 93,526 | ||||||||
| Net other non-operating income (expenses) |
(297,980 | ) | 189,324 | (109,537 | ) | |||||||
| Profit before income tax expense |
6,170,449 | 5,449,744 | 6,081,606 | |||||||||
| Income tax expense |
(1,607,018 | ) | (1,518,343 | ) | (1,697,225 | ) | ||||||
| Profit for the period |
4,563,431 | 3,931,401 | 4,384,381 | |||||||||
| Other comprehensive income for the period, net of tax |
1,066,624 | 123,168 | 222,758 | |||||||||
| Items that will not be reclassified to profit or loss: |
||||||||||||
| For the year ended December 31, 2023 |
For the year ended December 31, 2022 |
For the year ended December 31, 2021 |
||||||||||
| Remeasurements of net defined benefit liabilities |
(72,170 | ) | 239,701 | (45,510 | ) | |||||||
| Share of other comprehensive income (loss) of associates and joint ventures |
(2 | ) | 183 | 51 | ||||||||
| Gains (losses) on equity securities at fair value through other comprehensive income |
69,605 | (932,058 | ) | 903,398 | ||||||||
| Fair value changes of financial liabilities designated at fair value through profit or loss due to own credit risk |
(52,863 | ) | 38,855 | 13,715 | ||||||||
| Items that may be reclassified subsequently to profit or loss: |
||||||||||||
| Currency translation differences |
317 | 165,568 | 255,907 | |||||||||
| Gains (losses) on debt securities at fair value through other comprehensive income |
3,304,471 | (5,342,895 | ) | (924,698 | ) | |||||||
| Share of other comprehensive income (loss) of associates and joint ventures |
26 | (545 | ) | 498 | ||||||||
| Gains (losses) on cash flow hedging instruments |
53,923 | 26,168 | 20,864 | |||||||||
| Losses on hedging instruments of net investments in foreign operations |
(14,659 | ) | (79,085 | ) | (57,935 | ) | ||||||
| Insurance finance income (expenses) |
(2,222,024 | ) | 6,007,276 | — | ||||||||
| Other comprehensive losses arising from separate accounts |
— | — | (63,814 | ) | ||||||||
| Gains on overlay adjustment |
— | — | 120,282 | |||||||||
| Total comprehensive income for the period |
5,630,055 | 4,054,569 | 4,607,139 | |||||||||
| Profit attributable to: |
||||||||||||
| Shareholders of the parent company |
4,631,932 | 4,152,992 | 4,409,543 | |||||||||
| Non-controlling interests |
(68,501 | ) | (221,591 | ) | (25,162 | ) | ||||||
| Total comprehensive income for the period attributable to: |
||||||||||||
| Shareholders of the parent company |
5,704,929 | 4,262,621 | 4,610,549 | |||||||||
| Non-controlling interests |
(74,874 | ) | (208,052 | ) | (3,410 | ) | ||||||
| Earnings per share |
||||||||||||
| Basic earnings per share (Won) |
11,580 | 10,334 | 11,134 | |||||||||
| Diluted earnings per share (Won) |
11,312 | 10,099 | 10,890 | |||||||||
| Notes: (1) | The consolidated financial information for the year ended December 31, 2023 is expected to be approved at the annual general meeting of shareholders. If such proposal is rejected or modified, then KB Financial Group will disclose such matter through a separate amendment filing. |
| (2) | The figures for the year ended December 31, 2023 reflect the application of K-IFRS 1117 (Insurance Contracts), and the figures for the year ended December 31, 2022 above have been restated retrospectively to reflect the application of K-IFRS 1117. |
| (3) | The figures for the year ended December 31, 2021 are based on K-IFRS 1104 (Insurance Contracts). Accordingly, such figures may not be directly comparable to the figures for the years ended December 31, 2023 and 2022. |
| 3.2. | Separate Financial Information |
3.2.1. Separate Statements of Financial Position
| (Unit: in millions of Won) | ||||||||||||
| As of December 31, 2023 | As of December 31, 2022 | As of December 31, 2021 | ||||||||||
| Cash and due from financial institutions |
256,337 | 351,056 | 608,076 | |||||||||
| Financial assets at fair value through profit or loss |
1,376,423 | 1,522,314 | 440,760 | |||||||||
| Loans measured at amortized cost |
608,286 | 522,326 | 249,128 | |||||||||
| Investments in subsidiaries |
26,717,817 | 26,741,438 | 26,741,438 | |||||||||
| Property and equipment |
3,080 | 3,552 | 4,444 | |||||||||
| Intangible assets |
15,954 | 16,752 | 16,673 | |||||||||
| Net defined benefit assets |
3,694 | 4,288 | 221 | |||||||||
| Deferred income tax assets |
4,492 | 19,904 | 5,583 | |||||||||
| Other assets |
542,815 | 1,272,197 | 805,056 | |||||||||
|
|
|
|
|
|
|
|||||||
| Total assets |
29,528,898 | 30,453,827 | 28,871,379 | |||||||||
|
|
|
|
|
|
|
|||||||
| Borrowings |
100,000 | — | — | |||||||||
| Debentures |
3,871,820 | 4,956,949 | 5,552,791 | |||||||||
| Current income tax liabilities |
104,299 | 926,573 | 570,519 | |||||||||
| Other liabilities |
410,704 | 338,489 | 235,095 | |||||||||
|
|
|
|
|
|
|
|||||||
| Total liabilities |
4,486,823 | 6,222,011 | 6,358,405 | |||||||||
|
|
|
|
|
|
|
|||||||
| Share capital |
2,090,558 | 2,090,558 | 2,090,558 | |||||||||
| Hybrid securities |
5,032,518 | 4,433,981 | 2,837,981 | |||||||||
| Capital surplus |
14,754,747 | 14,754,747 | 14,754,747 | |||||||||
| Accumulated other comprehensive loss |
(6,809 | ) | (5,847 | ) | (8,330 | ) | ||||||
| Retained earnings |
4,336,898 | 3,794,565 | 3,974,206 | |||||||||
| Treasury Shares |
(1,165,837 | ) | (836,188 | ) | (1,136,188 | ) | ||||||
|
|
|
|
|
|
|
|||||||
| Total equity |
25,042,075 | 24,231,816 | 22,512,974 | |||||||||
|
|
|
|
|
|
|
|||||||
| Total liabilities and equity |
29,528,898 | 30,453,827 | 28,871,379 | |||||||||
|
|
|
|
|
|
|
|||||||
| Note: | The separate financial information for the year ended December 31, 2023 is expected to be approved at the annual general meeting of shareholders. If such proposal is rejected or modified, then KB Financial Group will disclose such matter through a separate amendment filing. |
3.2.2. Separate Statements of Comprehensive Income
| (Unit: in millions of Won, except per share amounts) |
||||||||||||
| For the year ended December 31, 2023 |
For the year ended December 31, 2022 |
For the year ended December 31, 2021 |
||||||||||
| Net interest expense |
(64,853 | ) | (92,951 | ) | (111,077 | ) | ||||||
| Interest income |
35,127 | 19,402 | 9,392 | |||||||||
| Interest income from financial instruments at amortized cost |
31,932 | 16,525 | 6,548 | |||||||||
| Interest income from financial instruments at fair value through profit or loss |
3,195 | 2,877 | 2,844 | |||||||||
| Interest expense |
(99,980 | ) | (112,353 | ) | (120,469 | ) | ||||||
| Net fee and commission expense |
(10,387 | ) | (8,686 | ) | (8,157 | ) | ||||||
| Fee and commission income |
2,585 | 3,399 | 975 | |||||||||
| Fee and commission expense |
(12,972 | ) | (12,085 | ) | (9,132 | ) | ||||||
| Net gains (losses) on financial assets at fair value through profit or loss |
108,399 | (11,794 | ) | 20,250 | ||||||||
| Net other operating income |
2,192,385 | 1,871,224 | 1,620,238 | |||||||||
| General and administrative expenses |
(92,603 | ) | (89,149 | ) | (85,417 | ) | ||||||
| Operating profit before provision for credit losses |
2,132,941 | 1,668,644 | 1,435,837 | |||||||||
| Provision for credit losses |
(546 | ) | (303 | ) | (417 | ) | ||||||
| Operating profit |
2,132,395 | 1,668,341 | 1,435,420 | |||||||||
| Net non-operating income |
4,606 | 908 | 1,165 | |||||||||
| Profit before income tax |
2,137,001 | 1,669,249 | 1,436,585 | |||||||||
| Income tax income (expense) |
(15,757 | ) | 15,263 | 2,281 | ||||||||
| Profit for the year |
2,121,244 | 1,684,512 | 1,438,866 | |||||||||
| Other comprehensive income (loss) for the year, net of tax |
(962 | ) | 2,483 | (298 | ) | |||||||
| Items that will not be reclassified to profit or loss: |
||||||||||||
| Remeasurements of net defined benefit liabilities |
(962 | ) | 2,483 | (298 | ) | |||||||
|
|
|
|
|
|
|
|||||||
| Total comprehensive income for the year |
2,120,282 | 1,686,995 | 1,438,568 | |||||||||
|
|
|
|
|
|
|
|||||||
| Earnings per share |
||||||||||||
| Basic earnings per share (Won) |
5,042 | 3,999 | 3,509 | |||||||||
| Diluted earnings per share (Won) |
4,929 | 3,912 | 3,436 | |||||||||
| Note: | The separate financial information for the year ended December 31, 2023 is expected to be approved at the annual general meeting of shareholders. If such proposal is rejected or modified, then KB Financial Group will disclose such matter through a separate amendment filing. |
| 3.3. | Other Selected Financial Data |
3.3.1. Won-denominated Liquidity Ratio
| (Unit: in millions of Won, except percentages) | ||||||||||||
| As of December 31, 2023 | As of December 31, 2022 | As of December 31, 2021 | ||||||||||
| Current assets in Won (A) |
656,555 | 959,935 | 713,908 | |||||||||
| Current liabilities in Won (B) |
255,693 | 592,727 | 317,184 | |||||||||
| Liquidity ratio (A/B) |
256.77 | % | 161.95 | % | 225.08 | % | ||||||
| Notes: (1) | Based on K-IFRS (on a separate basis). |
| (2) | Calculated based on Won-denominated assets and liabilities due within one month. |
3.3.2. Profitability Ratios
| (Unit: %) | ||||||||
| For the year ended December 31, 2023 |
For the year ended |
For the year ended |
||||||
| Net income as a percentage of average total assets (ROA) |
0.65 | 0.57 | 0.69 | |||||
| Net income as a percentage of average shareholders’ equity (ROE) |
8.36 | 8.17 | 9.80 | |||||
| Note: | Based on K-IFRS (on a consolidated basis). |
3.3.3. 20 Largest Exposures of Kookmin Bank by Borrower (As of December 31, 2023)
| (Unit: in billions of Won) | ||||
| Company |
Credit Extended | |||
| LG Display Co., Ltd. |
1,896 | |||
| KB Kookmin Card Co., Ltd. |
1,284 | |||
| HD Hyundai Heavy Industries Co., Ltd. |
1,157 | |||
| E-MART Inc. |
1,145 | |||
| Samsung Electronics Co., Ltd. |
1,123 | |||
| Samsung Heavy Industries Co., Ltd. |
979 | |||
| Strada Holdco L.P. |
976 | |||
| SK on Co., Ltd. |
837 | |||
| SK Inc. |
828 | |||
| Samsung SDI Co., Ltd. |
821 | |||
| SK hynix Inc. |
789 | |||
| Shinhan Card Co., Ltd. |
784 | |||
| Hyundai Samho Heavy Industries Co.,Ltd. |
708 | |||
| Construction Guarantee |
704 | |||
| GS Caltex Corporation |
692 | |||
| Hanwha Solutions Corporation |
691 | |||
| Hyundai Steel Co., Ltd. |
687 | |||
| HD Hyundai Oilbank Co., Ltd. Seoul Branch |
646 | |||
| LG Chem, Ltd. |
636 | |||
| Hanwha Ocean Co., Ltd. |
625 | |||
|
|
|
|||
| Total |
18,008 | |||
|
|
|
|||
3.3.4. 10 Largest Exposures of Kookmin Bank by Chaebol Group (As of December 31, 2023)
| (Unit: in billions of Won) | ||||
| Group |
Credit Extended | |||
| SK |
6,086 | |||
| Samsung |
4,574 | |||
| Hyundai Motor |
4,547 | |||
| LG |
4,158 | |||
| HD Hyundai (former Hyundai Heavy Industries) |
3,540 | |||
| Lotte |
3,388 | |||
| Hanwha |
2,936 | |||
| POSCO |
1,766 | |||
| Shinsegae |
1,668 | |||
| GS |
1,463 | |||
|
|
|
|||
| Total |
34,126 | |||
|
|
|
|||
3.3.5. Kookmin Bank’s Loan Concentration by Industry (As of December 31, 2023)
| (Unit: in billions of Won, except percentages) |
||||||||
| Industry |
Total Credit |
Percentage of Total Credit |
||||||
| Manufacturing |
54,017 | 25.9 | ||||||
| Construction |
4,871 | 2.3 | ||||||
| Real estate activities |
52,644 | 25.2 | ||||||
| Wholesale and retail trade |
30,163 | 14.5 | ||||||
| Accommodation and food service activities |
10,730 | 5.1 | ||||||
| Financial activities |
8,245 | 4.0 | ||||||
| Others |
47,913 | 23.0 | ||||||
|
|
|
|
|
|||||
| Total |
208,584 | 100.0 | ||||||
|
|
|
|
|
|||||
3.3.6. Top 20 Non-Performing Loans of Kookmin Bank (As of December 31, 2023)
| (Unit: in billions of Won) | ||||||||||
| Borrower |
Industry |
Total Credit | Allowance for Loan Losses |
|||||||
| Borrower A |
Real estate activities | 243.3 | 112.5 | |||||||
| Borrower B |
Construction | 40.1 | 39.3 | |||||||
| Borrower C |
Arts, sports, and leisure related services | 16.4 | 6.9 | |||||||
| Borrower D |
Real estate activities | 13.3 | 2.8 | |||||||
| Borrower E |
Wholesale and retail trade | 13.0 | 11.1 | |||||||
| Borrower F |
Construction | 10.0 | 9.8 | |||||||
| Borrower G |
Manufacturing | 8.4 | 2.8 | |||||||
| Borrower H |
Manufacturing | 8.0 | 5.6 | |||||||
| Borrower I |
Accommodation and food service activities | 7.8 | 0.2 | |||||||
| Borrower J |
Real estate activities | 7.4 | 0.4 | |||||||
| Borrower K |
Manufacturing | 6.8 | 3.8 | |||||||
| Borrower L |
Manufacturing | 6.6 | 1.7 | |||||||
| Borrower M |
Arts, sports, and leisure related services | 6.1 | 0.4 | |||||||
| Borrower N |
Manufacturing | 5.3 | 6.4 | |||||||
| Borrower O |
Manufacturing | 5.1 | 0.3 | |||||||
| Borrower P |
Wholesale and retail trade | 5.1 | 5.1 | |||||||
| Borrower Q |
Manufacturing | 4.5 | 3.2 | |||||||
| Borrower R |
Membership organizations, repair and other personal services | 3.8 | 0.6 | |||||||
| Borrower S |
Manufacturing | 3.6 | 3.5 | |||||||
| Borrower T |
Manufacturing | 3.6 | 2.9 | |||||||
|
|
|
|
|
|||||||
| - |
- | 418.1 | 219.4 | |||||||
|
|
|
|
|
|||||||
| 3.4. | Other Financial Information |
The Company’s audited consolidated and separate financial statements are available on its website at www.kbfg.com.
| 4. | Independent Public Accountants |
| 4.1. | Audit / Review Services |
| (Unit: in millions of Won) | ||||||||||||||||||||
| Period |
Auditor |
Activity |
Agreed Per Contract(1) | Actual(2) | ||||||||||||||||
| Compensation(3) | Estimated Hours |
Compensation(3) | Accrued Hours |
|||||||||||||||||
| January 1 to December 31, 2023 |
Samil PricewaterhouseCoopers | Quarterly, semi-annual and annual review & audit, review of internal accounting management system (including audit of internal control over financial reporting) | 1,264 | 11,675 | 1,264 | 11,309 | ||||||||||||||
| January 1 to December 31, 2022 |
KPMG Samjong Accounting Corp. | Quarterly, semi-annual and annual review & audit, review of internal accounting management system (including audit of internal control over financial reporting) | 1,291 | 11,364 | 1,291 | 11,028 | ||||||||||||||
| January 1 to December 31, 2021 |
KPMG Samjong Accounting Corp. | Quarterly, semi-annual and annual review & audit, review of internal accounting management system (including audit of internal control over financial reporting) | 1,261 | 11,364 | 1,261 | 11,451 | ||||||||||||||
| Notes: | (1) | Total compensation and estimated hours are established at the time of the execution of the audit and review services contract. | ||
| (2) | Actual compensation and hours are accrued from January 1 of each applicable year to the date of the audit or review report issued during such year. | |||
| (3) | Excluding value-added taxes. |
| 4.2. | Public Company Accounting Oversight Board (“PCAOB”) Audit Services |
| (Unit: in millions of Won) | ||||||||||
| Period |
Auditor |
Activity |
Service Period |
Compensation(1) | ||||||
| January 1 to December 31, 2023 |
Samil PricewaterhouseCoopers | PCAOB audit of consolidated financial statements and internal control over financial reporting | May 1, 2023 to April 30, 2024 | 784 | ||||||
| January 1 to December 31, 2022 |
KPMG Samjong Accounting Corp. | PCAOB audit of consolidated financial statements and internal control over financial reporting | May 1, 2022 to April 30, 2023 | 697 | ||||||
| January 1 to December 31, 2021 |
KPMG Samjong Accounting Corp. | PCAOB audit of consolidated financial statements and internal control over financial reporting | May 1, 2021 to April 30, 2022 | 681 | ||||||
| Note: | (1) Total compensation (excluding value-added taxes) is established at the time of the execution of the audit and review services contract. |
| 4.3. | Change in Auditor |
Pursuant to the Act on External Audit of Stock Companies and the related regulations thereunder, the Securities and Futures Commission under the Financial Services Commission had designated KPMG Samjong Accounting Corp. as the external auditor for the Company for the fiscal years ended December 31, 2020, 2021 and 2022. Following the end of KPMG Samjong Accounting Corp.’s designated period as the auditor, the Company selected Samil PricewaterhouseCoopers to be its new external auditor for the fiscal years ending December 31, 2023, 2024 and 2025, in accordance with the criteria and processes set forth by relevant laws and regulations. As such, the external auditor for the Company and its subsidiaries for the fiscal year ended December 31, 2023 was Samil PricewaterhouseCoopers.
| 5. | Corporate Governance and Affiliated Companies |
| 5.1. | Board of Directors & Committees under the Board |
As of December 31, 2023, our board of directors consisted of nine directors, comprising one executive director, one non-standing director and seven non-executive directors. The following committees currently serve under our board of directors:
| • | Audit Committee; |
| • | Risk Management Committee; |
| • | Evaluation and Compensation Committee; |
| • | ESG Committee; |
| • | Non-Executive Director Nominating Committee; |
| • | CEO Nominating Committee; |
| • | Subsidiaries’ CEO Director Nominating Committee; and |
| • | Audit Committee Member Nominating Committee (ad hoc committee). |
For the list of our directors, see 6. Directors, Senior Management and Employees — 6.1. Executive Directors, — 6.2. Non-standing Directors and — 6.3. Non-executive Directors below.
| 5.2. | Audit Committee |
The Audit Committee oversees our financial reporting and approves the appointment of our independent auditors and internal compliance officers. The committee also reviews our financial information, auditor’s examinations, key financial statement issues, the plans and evaluation of internal controls and the administration of our financial affairs by the board of directors. In connection with the general meetings of shareholders, the committee examines the agenda for, and financial statements and other reports to be submitted by, the board of directors to each general meeting of shareholders. The committee holds regular meetings every quarter and on an as-needed basis.
The following table shows a list of audit committee requirements under Articles 415-2 and 542-11 of the Commercial Act and how we fulfill each requirement as of December 31, 2023.
| The Commercial Act Requirements |
KB Financial Group |
|
| The Audit Committee must consist of three or more directors. |
We have four Audit Committee members. |
|
| At least two-thirds of the Audit Committee members must be non-executive directors. |
All four Audit Committee members, including the chairman of the committee, are non-executive directors. |
|
|
The chairman of the Audit Committee must be a non-executive director. |
||
| At least one Audit Committee member must be an accounting or financial expert. |
Two Audit Committee members (Whajoon Cho, Kyung Ho Kim) are accounting or financial experts. |
|
| 5.2. | Compensation to Directors |
5.3.1. Total Amount of Compensation Approved at the Annual General Meeting of Shareholders
| (Unit: in millions of Won) | ||||||||||
| Total number of persons(1) | Total compensation approved at shareholders’ meeting(2) | Notes | ||||||||
| Registered Directors (Non-executive directors) |
9 (7) | 3,000 | — | |||||||
| Notes: (1) | Represents the total number of applicable persons as of December 31, 2023. | |
| (2) | Represents the aggregate amount for all directors (including non-executive directors). Excludes compensation in the form of long-term performance-based stock grants. |
5.3.2. Total Amount of Compensation Paid
| (As of December 31, 2023) | (Unit: in millions of Won) | |||||
| Total number of persons(1) |
Total payment(2)(3) |
Average payment per person(4) |
Notes | |||
| 9 |
4,621 | 513 | — | |||
| Notes: (1) | Represents the total number of applicable persons as of December 31, 2023. | |
| (2) | Represents the total amount paid (rounded to the nearest million) for the year ended December 31, 2023. | |
| (3) | Total payment amount in accordance with the Company’s internal policies on compensation to directors. | |
| (4) | Represents (i) the total amount paid (rounded to the nearest million) for the year ended December 31, 2023, divided by (ii) the number of applicable persons for the applicable reporting period. |
5.3.3. Compensation Breakdown
| (As of December 31, 2023) | (Unit: in millions of Won) | |||||||||||||||
| Total number of persons(1) |
Total payment(2)(3) | Average payment per person(4) |
Notes | |||||||||||||
| Registered Directors (excluding non-executive directors and Audit Committee members) |
2 | 3,945 | 1,972 | — | ||||||||||||
| Non-executive Directors (excluding Audit Committee members) |
3 | 261 | 87 | — | ||||||||||||
| Audit Committee members |
4 | 415 | 103 | — | ||||||||||||
| Internal Auditor |
— | — | — | — | ||||||||||||
| Notes: (1) | Represents the total number of applicable persons as of December 31, 2023. |
| (2) | Represents the total amount paid (rounded to the nearest million) for the year ended December 31, 2023. |
| (3) | Total payment amount in accordance with the Company’s internal policies on compensation to directors. |
| (4) | Represents (i) the total amount paid (rounded to the nearest million) for the year ended December 31, 2023, divided by (ii) the number of applicable persons for the applicable reporting period. |
| 5.3. | Top 5 Highest-Paid Individuals |
5.4.1 Compensation exceeding Won 500 million – Individual basis
| (As of December 31, 2023) | (Unit: in millions of Won) | |||||||
| Name |
Position |
Total Amount |
Deferred Compensation(1) |
|||||
| Jong Kyoo Yoon | Former Chairman & CEO |
3,856 | - Deferred short-term performance-based payment, the amount of which corresponds to a total of 10,543 shares and deferred long-term performance-based payment, the amount of which corresponds to a total of 40,881 shares. |
|||||
| Jong Hee Yang | Chairman & CEO | 1,555 | - Deferred short-term performance-based payment, the amount of which corresponds to a total of 2,512 shares and deferred long-term performance-based payment, the amount of which corresponds to a total of 4,372 shares. - Long-term performance-based payment (18,516 shares per year), the amount of which will be finalized at a future date pursuant to a performance evaluation over a three-year period from November 21, 2023 to November 20, 2026. |
|||||
| Dong Whan Han |
Senior Executive Vice President | 952 | - Deferred short-term performance-based payment, the amount of which corresponds to a total of 2,446 shares and deferred long-term performance-based payment, the amount of which corresponds to a total of 3,788 shares. |
|||||
| Dong Cheol Lee |
Former Vice Chairman |
894 | - Deferred short-term performance-based payment, the amount of which corresponds to a total of 2,544 shares. |
|||||
| Yin Hur |
Former Vice Chairman |
854 | - Deferred short-term performance-based payment, the amount of which corresponds to a total of 3,057 shares. |
|||||
| Note: (1) | The actual payment amount will be finalized based on the market value of our shares at the time of payment. |
5.4.2 Calculation criteria and method of compensation
| Name | Compensation Type | Total Compensation (in |
Calculation Criteria and Method | |||||||
| Jong Kyoo Yoon | Earned income | Salary | 824 |
- A monthly salary was paid in even installments each month in accordance with the amount of annual salary determined by a resolution of the Evaluation and Compensation Committee within the limit of the total amount of compensation approved at the shareholders’ meeting. (This amount includes allowances for business expenses of Won 367 million.) |
||||||
| Bonus | 2,657 |
- The bonus paid in 2023 consisted of Won 678 million in short-term performance-based compensation and Won 1,978 million in long-term performance-based compensation.
- The short-term performance-based compensation consisted of Won 178 million paid as an upfront lump sum payment pursuant to a performance evaluation for the period prior to the end of his term of office from January 1, 2023 to November 20, 2023, Won 196 million paid as an upfront lump sum payment pursuant to a performance evaluation for 2022, Won 98 million (1,822 shares) paid as the third installment of deferred payments pursuant to a performance evaluation for the period in 2020 prior to re-election, from January 1, 2020 to November 20, 2020, Won 12 million (224 shares) paid as the third installment of deferred payments pursuant to a performance evaluation for the period in 2020 after re-election, from November 21, 2020 to December 31, 2020, Won 94 million (1,773 shares) paid as the second installment of deferred payments pursuant to a performance evaluation for 2021, and Won 101 million (1,918 shares) paid as the first installment of deferred payments pursuant to a performance evaluation for 2022.
- The short-term performance evaluation index for 2022 and 2023 consisted of financial results (e.g., ROE, total operating income, net profit from non-banking businesses, comprehensive NPL ratio, RAROC/RORWA, Tier 1 ratio, CIR), as well as non-financial results (e.g., improving the core competitiveness and recovery resilience of the Group, expanding global and new businesses, innovating the financial platform, leading sustainable growth by enhancing asset quality, ESG and internal control, and cultivating an open and creative organizational structure). The amount of the short-term incentive payment is determined by the Evaluation and Compensation Committee based on the aggregate score of the index items above and is within the range of 0%-100% of the base salary.
- With respect to financial results, the Group’s net profit for 2022 was Won 4,394.8 billion, primarily due to a well-managed asset quality (e.g. comprehensive NPL ratio), and the Group’s net profit as of September 30, 2023 was Won 4,370.4 billion, primarily due to the solid growth in core earnings and enhanced cost efficiencies. Such results were considered, among others, to be major achievements that were reflected in the performance evaluation.
- With respect to non-financial results, the major achievements considered for 2022 included (i) strengthening the competencies of the Group’s core businesses and optimizing its business portfolio, (ii) enhancing the efficiency of the Group’s business line and optimizing its costs, and (iii) strengthening the competencies and market dominance of the Group’s non-banking operations and (iv) solidifying the Group’s position as a leading financial group in ESG management, and the major achievements considered for 2023 included (i) advancing profit models of the Group’s business sectors, (ii) enhancing the performance of the Group’s non-banking operations and new challenges, (iii) expanding the scope and strengthening the competency of financial platforms, and (iv) executing ESG and accelerating its connection with the business operations.
- The long-term performance-based compensation consisted of Won 1,472 million (27,254 shares) paid as an upfront lump sum payment pursuant to a performance evaluation for the three-year period from November 21, 2020 to November 20, 2023, and Won 506 million (9,378 shares) paid as the third installment of deferred payments pursuant to a performance evaluation for the three-year period from November 21, 2017 to November 20, 2020.
- The long-term performance evaluation index consisted of financial results (e.g., relative total shareholder return, earnings per share, asset quality, HCROI, net profit from non-banking businesses). The amount of the long-term incentive payment is determined by the Evaluation and Compensation Committee based on the aggregate score of the index items above and is within the range of 0%-200% of the base salary.
- With respect to the financial results for long-term performance evaluation, the relative total shareholder return was calculated by measuring the increase in the Company’s share price relative to the average increase in the share price of competitors for each evaluation period, while the other items were calculated by averaging each year’s results. |
||||||||
| Name | Compensation Type | Total Compensation (in |
Calculation Criteria and Method | |||||||
| Stock options | — |
- Not applicable |
||||||||
| Other earned income |
— |
- Not applicable |
||||||||
| Retirement income | 375 |
- Pursuant to the internal policy regarding the retirement benefits of directors, the retirement income was determined to be 1/12 of the officer’s salary at the date of retirement, multiplied by the number of years in office. |
||||||||
| Other income | — |
- Not applicable |
||||||||
| Jong Hee Yang | Earned income | Salary | 500 |
- A monthly salary was paid in even installments each month in accordance with the amount of annual salary determined based on his position and responsibilities pursuant to our internal policy regarding executive officers.
- Since his appointment as the chairman and CEO, a monthly salary was paid in even installments each month in accordance with the amount of annual salary determined through a resolution of the Evaluation and Compensation Committee within the limit of the total amount of compensation approved at the shareholders’ meeting. (including allowances for business expenses of Won 88 million.) |
||||||
| Bonus | 950 |
- The bonus paid in 2023 consisted of Won 333 million in short-term performance-based compensation and Won 617 million in long-term performance-based compensation.
- The short-term performance-based compensation consisted of Won 234 million paid as an upfront lump sum payment pursuant to a performance evaluation for 2022, Won 46 million (868 shares) paid as the second installment of deferred payments pursuant to a performance evaluation for 2021, and Won 54 million (1,018 shares) paid as the first installment of deferred payments pursuant to a performance evaluation for 2022.
- The short-term performance evaluation index for 2022 consisted of financial results linked to his role as a vice chairman and as the head of the Group’s digital/IT division, as well as non-financial results linked to certain management tasks. The amount of the short-term incentive payment was determined by the Evaluation and Compensation Committee, based on a comprehensive evaluation and is within the range of 0%-120% of the base salary.
- His major achievements included his dedication to the Group’s main platform exceeding 10 million monthly active users, enhancing the Group’s Digital Transformation/IT capabilities, strengthening the IT synergies within the Group, introducing a customer segment data based marketing, and strengthening the competency of financial/non-financial platforms.
- The long-term performance-based compensation consisted of Won 501 million (9,834 shares) paid as an upfront lump sum payment pursuant to a performance evaluation for the period from 2021 to 2022, and Won 115 million (2,185 shares) paid as the first installment of deferred payments pursuant to a performance evaluation for the period from 2021 to 2022.
- The long-term performance evaluation index consisted of relative total shareholder return, as well as the performance results linked to his role and duties. The amount of the long-term incentive payment was determined by a comprehensive evaluation based on his achievements of each of the indices and is within the range of 0%-100% of his base salary. |
||||||||
| Name | Compensation Type | Total Compensation (in |
Calculation Criteria and Method | |||||||
|
- With respect to the financial results for long-term performance evaluation, the relative total shareholder return was calculated by measuring the increase in the Company’s share price relative to the average increase in the share price of competitors for each evaluation period, while the other items were calculated by averaging each year’s results. |
||||||||||
| Stock options | — |
- Not applicable |
||||||||
| Other earned income |
8 |
- Welfare benefits |
||||||||
| Retirement income | 97 |
- Pursuant to the internal policy regarding the retirement benefits of directors, the retirement income was determined to be 1/12 of the officer’s salary at the date of retirement, multiplied by the number of years in office. |
||||||||
| Other income | — |
- Not applicable |
||||||||
| Dong Whan Han | Earned income | Salary | 260 |
- A monthly salary was paid in even installments each month in accordance with the amount of annual salary determined based on his position and responsibilities pursuant to our internal policy regarding executive officers. |
||||||
| Bonus | 601 |
- The bonus paid in 2023 consisted of Won 211 million in short-term performance-based compensation and Won 389 million in long-term performance-based compensation.
- The short-term performance-based compensation consisted of Won 126 million paid as an upfront lump sum payment pursuant to a performance evaluation for 2022, Won 42 million (801 shares) paid as the second installment of deferred payments pursuant to a performance evaluation for 2021, and Won 43 million (821 shares) paid as the first installment of deferred payments pursuant to a performance evaluation for 2022.
- The short-term performance evaluation index for 2022 consisted of non-financial results linked to his role as the head of KB Research and certain management tasks. The amount of the short-term incentive payment was determined by the Evaluation and Compensation Committee, based on a comprehensive evaluation and is within the range of 0%-120% of his base salary.
- With respect to non-financial results, his major achievements included (i) carrying out research tasks with the goal of securing core competencies of the Group and its subsidiaries, (ii) analyzing the global financial environment and the domestic and foreign macroeconomic environment, and (iii) swiftly sharing research reports within the Group to achieve its “One-Firm KB” goal and (iv) strengthening the role of the “Knowledge Hub”.
- The long-term performance-based compensation consisted of Won 290 million (5,681 shares) paid as an upfront lump sum payment pursuant to a performance evaluation for the period from 2021 to 2022 and Won 100 million (1,894 shares) paid as the first installment of deferred payments pursuant to a performance evaluation for the period from 2021 to 2022.
- The long-term performance evaluation index consisted of relative total shareholder return, as well as the performance results linked to his role and duties. The amount of the long-term incentive payment was determined by a comprehensive evaluation based on his achievements of each of the indices and is within the range of 0%-100% of his base salary.
- With respect to the financial results for long-term performance evaluation, the relative total shareholder return was calculated by measuring the increase in the Company’s share price relative to the average increase in the share price of competitors for each evaluation period, while the other items were calculated by averaging each year’s results. |
||||||||
| Name |
Compensation Type |
Total Compensation (in |
Calculation Criteria and Method |
|||||||
| Stock options | — | - Not applicable |
||||||||
| Other earned income |
21 | - Welfare benefits |
||||||||
| Retirement income | 70 | - Pursuant to the internal policy regarding the retirement benefits of directors, the retirement income was determined to be 1/12 of the officer’s salary at the date of retirement, multiplied by the number of years in office. |
||||||||
| Other income | — | - Not applicable |
||||||||
| Dong Cheol Lee | Earned income | Salary | 422 | - A monthly salary was paid in even installments each month in accordance with the amount of annual salary determined based on his position and responsibilities pursuant to our internal policy regarding executive officers. (This amount includes allowances for business expenses of Won 55 million.) |
||||||
| Bonus | 262 | - The bonus paid in 2023 consisted of Won 262 million in short-term performance-based compensation.
- The short-term performance-based compensation consisted of Won 194 million paid as an upfront lump sum payment pursuant to a performance evaluation for 2022, and Won 67 million (1,271 shares) paid as the first installment of deferred payments pursuant to a performance evaluation for 2022.
- The short-term performance evaluation index for 2022 consisted of non-financial results linked his role as the vice chairman and as the head of the Group’s insurance business and global business, as well as non-financial results linked to certain management tasks. The amount of the short-term incentive payment was determined by the Evaluation and Compensation Committee, based on a comprehensive evaluation and is within the range of 0%-120% of the base salary.
- His major achievements included his efforts in (i) strengthening the core competitiveness of the insurance business, (ii) establishing appropriate response actions to prepare for the introduction of IFRS 17, (iii) establishing a consistent and unified management system for the management of the three insurance subsidiaries of the Group, including the integration of the asset management of the insurance subsidiaries, and (iv) improving the management structure of the Group’s global business. |
||||||||
| Stock options | — | - Not applicable |
||||||||
| Other earned income |
11 | - Welfare benefits |
||||||||
| Retirement income | 200 | - Pursuant to the internal policy regarding the retirement benefits of directors, the retirement income was determined to be 1/12 of the officer’s salary at the date of retirement, multiplied by the number of years in office. |
||||||||
| Other income | — | - Not applicable |
||||||||
| Yin Hur | Earned income | Salary | 422 | - A monthly salary was paid in even installments each month in accordance with the amount of annual salary determined based on his position and responsibilities pursuant to our internal policy regarding executive officers. (This amount includes allowances for business expenses of Won 55 million.) |
||||||
| Bonus | 236 | - The bonus paid in 2023 consisted of Won 236 million in short-term performance-based compensation. |
||||||||
| Name |
Compensation Type |
Total Compensation (in millions of Won) |
Calculation Criteria and Method |
|||||||
| - The short-term performance-based compensation consisted of Won 156 million paid as an upfront lump sum payment pursuant to a performance evaluation for 2022 and Won 81 million (1,528 shares) paid as the first installment of deferred payments pursuant to a performance evaluation for 2022.
- The short-term performance evaluation index for 2022 consisted of non-financial results linked his role as the vice chairman and as the head of the Group’s Retail Customer, Wealth Management/Pension, and SME divisions as well as non-financial results linked to certain management tasks. The amount of the short-term incentive payment was determined by the Evaluation and Compensation Committee, based on a comprehensive evaluation and is within the range of 0%-120% of the base salary.
- His major achievements included his efforts in (i) increasing the number of the Group’s customers, (ii) expanding the Group’s integrated marketing model, (iii) securing competitive advantages in the pension business by implementing preemptive measures against institutional changes, and (iv) diversifying product distribution channels and elaboration of marketing targets for the SME business. |
||||||||||
| Stock options | — | - Not applicable |
||||||||
| Other earned income |
11 | - Welfare benefits |
||||||||
| Retirement income | 185 | - Pursuant to the internal policy regarding the retirement benefits of directors, the retirement income was determined to be 1/12 of the officer’s salary at the date of retirement, multiplied by the number of years in office. |
||||||||
| Other income | — | - Not applicable |
||||||||
| 5.5. | Affiliated Companies |
5.5.1. List of Affiliated Companies
Affiliated companies of KB Financial Group that are first-tier subsidiaries and KB Financial Group’s ownership of such companies as of December 31, 2023 are as follows.
1) Kookmin Bank (100.00%)
2) KB Securities Co., Ltd. (100.00%)
3) KB Insurance Co., Ltd. (100.00%)
4) KB Kookmin Card Co., Ltd. (100.00%)
5) KB Life Insurance Co., Ltd. (100.00%)
6) KB Asset Management Co., Ltd. (100.00%)
7) KB Capital Co., Ltd. (100.00%)
8) KB Real Estate Trust Co., Ltd. (100.00%)
9) KB Savings Bank Co., Ltd. (100.00%)
10) KB Investment Co., Ltd. (100.00%)
11) KB Data Systems Co., Ltd. (100.00%)
| 6. | Directors, Senior Management and Employees |
| 6.1. | Executive Directors |
As of December 31, 2023, and March 14, 2024, we had one executive director. The name, position and the end of the term of our executive director and the number of shares of our common stock he owned as of March 12, 2024 are set forth below.
| Name |
Date of Birth |
Position |
Common Shares Owned |
End of Term |
||||
| Jong Hee Yang |
June 1961 | Chairman & Chief Executive Officer | 914 | November 20, 2026 |
| 6.2. | Non-standing Directors |
As of December 31, 2023, and March 14, 2024, we had one non-standing director. The name, position and the end of the term of our non-standing director and the number of shares of our common stock he owned as of March 12, 2024 are set forth below.
| Name |
Date of Birth |
Position |
Common Shares Owned |
End of Term(1) |
||||
| Jae Keun Lee |
May 1966 | Non-standing Director | 1,119 | March 22, 2024 |
| Note: | (1) The date designated as Mr. Jae Keun Lee’s end of term is the date of the annual general meeting of shareholders for fiscal year 2023, which is expected be held in March 2024. |
| 6.3. | Non-executive Directors |
As of December 31, 2023, and March 14, 2024, we had seven non-executive directors. The name, position and the end of the term of our non-executive directors and the number of shares of our common stock they respectively owned as of March 12, 2024 were as follows.
| Name |
Date of Birth |
Position |
Common Shares Owned |
End of Term |
||||||
| Kyung Ho Kim |
December 1954 | Non-executive Director | — | March 23, 2024 | ||||||
| Seon-joo Kwon |
November 1956 | Non-executive Director | — | March 23, 2024 | ||||||
| Whajoon Cho |
February 1957 | Non-executive Director | — | March 23, 2025 | ||||||
| Gyutaeg Oh |
February 1959 | Non-executive Director | — | March 23, 2024 | ||||||
| Jungsung Yeo |
April 1960 | Non-executive Director | — | March 23, 2025 | ||||||
| Jaehong Choi |
August 1962 | Non-executive Director | — | March 24, 2024 | ||||||
| Sung-Yong Kim |
March 1966 | Non-executive Director | — | March 23, 2025 | ||||||
Appointment of Directors to be proposed at the annual general meeting of shareholders
The following is a list of the non-standing director and non-executive director candidates, as of March 14, 2024, to be proposed to shareholders at the annual general meeting of shareholders for fiscal year 2023. If such proposal is rejected at the upcoming annual general meeting of shareholders, KB Financial Group will disclose such matter through a separate amendment filing. For more information regarding the annual general meeting of shareholders and agenda items, please refer to the Company’s report on Form 6-K furnished to the Securities and Exchange Commission on March 6, 2024.
| Name |
Date of Birth |
Nominated Position |
Expected Date
of |
|||
| Jae Keun Lee (Re-appointment) |
May 1966 | Non-standing Director | March 22, 2024 | |||
| Seon-joo Kwon (Re-appointment) |
November 1956 | Audit Committee Member and Non-executive Director | March 22, 2024 | |||
| Gyutaeg Oh (Re-appointment) |
February 1959 | Audit Committee Member and Non-executive Director | March 22, 2024 | |||
| Jaehong Choi (Re-appointment) |
August 1962 | Non-executive Director | March 22, 2024 | |||
| Myong-Hwal Lee (New appointment) |
May 1964 | Non-executive Director | March 22, 2024 |
| 6.4. | Senior Management |
Members of our senior management as of March 14, 2024 are as follows.
| Name |
Date of Birth |
Position |
Common Shares Owned(1) | End of Term |
||||||
| Jong Hee Yang |
June 1961 | Vice Chairman and Head of Retail Customer / Wealth Management & Pension / Small & Medium Enterprise Business Units | 914 | November 20, 2026 | ||||||
| Seung Jong Lee |
January 1966 | Senior Executive Vice President and Chief Strategy Officer | 1,198 | December 31, 2024 | ||||||
| Jae Kwan Kim |
July 1968 | Senior Executive Vice President and Chief Finance Officer | 4,807 | December 31, 2024 | ||||||
| Cheal Soo Choi |
October 1966 | Senior Executive Vice President and Chief Risk Management Officer | 504 | December 31, 2024 | ||||||
| Scott Y.H. Seo |
March 1966 | Senior Executive Vice President and Chief Business Officer of Global | 2,000 | December 31, 2024 | ||||||
| Young Suh Cho |
February 1971 | Senior Executive Vice President, Chief Digital Officer and Chief IT Officer | 1,000 | December 31, 2024 | ||||||
| Dae Hwan Lim |
November 1965 | Senior Executive Vice President and Chief Compliance Officer | 1,715 | December 31, 2025 | ||||||
| Bong Joong Kwon |
November 1969 | Senior Managing Director and Head of the IR Division | 2,103 | December 31, 2024 | ||||||
| Hyo Ik Park |
January 1970 | Senior Managing Director and Chief Business Officer of Insurance | 784 | December 31, 2024 | ||||||
| Dae Hyun Cha |
January 1966 | Senior Managing Director and Chief Officer of Audit Department | 1,244 | December 31, 2024 | ||||||
| Keoung Nam Kim |
August 1967 | Managing Director and Head of the ESG Division | 1,213 | December 31, 2024 | ||||||
| Sang Rock Na |
August 1972 | Managing Director and General Manager of the Financial Planning Department | 743 | December 31, 2025 | ||||||
| Name |
Date of Birth |
Position |
Common Shares Owned(1) | End of Term |
||||||
| Hyo Sung Jeon |
March 1971 | Managing Director and Chief Human Resources Officer | 1,272 | December 31, 2025 | ||||||
| Ki Won Seo |
November 1972 | Managing Director and General Manager of the Office of Board of Directors | 665 | December 31, 2025 | ||||||
| Jin Young Park |
September 1972 | Chief Public Relation Officer | 1,680 | December 31, 2024 | ||||||
| Jin Ho Jeong |
October 1967 | Head of the DT Division | 2,138 | December 31, 2024 | ||||||
| Chang Hwa Yook |
December 1967 | Head of the AI Division | 657 | December 31, 2024 | ||||||
| Sang Won Oh |
December 1967 | Head of the IT Division | 676 | December 31, 2024 | ||||||
| Yoon Ha |
March 1971 | Head of the Customer Experience Design Center | — | December 31, 2024 | ||||||
| Soon Young Oh |
August 1977 | Head of the Financial AI Center | — | December 31, 2024 | ||||||
| Ki Eun Park |
September 1970 | Head of the Group Architecture Center | 261 | December 31, 2024 | ||||||
| Joo Hyun Kim |
November 1970 | Head of the Group Cloud Center | 281 | December 31, 2024 | ||||||
| Chan Yong Park |
September 1965 | Head of the Planning & Coordination Department | 1,134 | December 31, 2024 | ||||||
| Note: | (1) The numbers of common shares owned are as of March 12, 2023 and includes those owned in the holder’s name under the employee stock ownership association’s account, and may differ from the number of shares owned as reported pursuant to Article 173 of the Financial Investment Services and Capital Markets Act. |
As of March 14, 2024, the following management also served as senior management at our subsidiaries.
| Name |
Subsidiary |
Position |
Appointment Date |
|||
| Jae Keun Lee |
Kookmin Bank | Chief Executive Officer | January 2022 | |||
| Keoung Nam Kim |
Kookmin Bank | Managing Director, ESG Division | January 2024 | |||
| Jin Young Park |
Kookmin Bank | Managing Director, Brand & PR Group | January 2024 | |||
| Jin Ho Jeong |
Kookmin Bank | Senior Executive Vice President, DT Initiative Division | January 2024 | |||
| Chang Hwa Yook |
Kookmin Bank | Senior Executive Vice President, AI/Data Innovation Division | January 2024 | |||
| Sang Won Oh |
Kookmin Bank | Senior Executive Vice President, Tech Development Division | January 2024 | |||
| Yoon Ha |
Kookmin Bank | Head of the Customer Experience Design Center | January 2022 | |||
| Soon Young Oh |
Kookmin Bank | Managing Director, Financial AI Center | June 2022 | |||
| Ki Eun Park |
Kookmin Bank | Senior Executive Vice President, Tech Development Division | January 2024 | |||
| Joo Hyun Kim |
Kookmin Bank | Head of the Cloud Platform Department | February 2022 | |||
| Chan Yong Park |
Kookmin Bank | Senior Executive Vice President; Planning & Coordination Department | January 2024 | |||
| Scott Y.H. Seo |
KB Insurance | Non-standing Director | February 2022 | |||
| KB Kookmin Card | Non-standing Director | March 2022 | ||||
| Sang Rock Na |
KB Capital | Non-standing Director | March 2021 | |||
| KB Investment | Non-standing Director | August 2020 |
| 6.5. | Employees |
The following table shows information regarding our employees and compensation paid to them as of December 31, 2023.
| (Unit: in millions of Won) | ||||||||
| Number of Employees(1) |
Average Tenure of Employees(2) |
Total Amount of Compensation(3) |
Average Compensation per Person(4) |
|||||
| 152 | 4 years and 6 months (16 years and 2 months) |
29,415 | 191 | |||||
| Notes: (1) | Includes all employees as of December 31, 2023, including executive officers. |
| (2) | The duration in parentheses includes tenure at our subsidiaries. |
| (3) | Based on the sum of all compensation paid from January 1, 2023 to December 31, 2023. |
| (4) | Based on the sum of the average monthly compensation of each month from January 1, 2023 to December 31, 2023, which is computed by dividing the sum of all compensation paid each month by the number of employees (including executive officers) at the end of each month. |
The following table shows information regarding our executive officers and compensation paid to them as of December 31, 2023.
| (Unit: in millions of Won) | ||||||||
| Number of Executive Officers(A)(1) |
Total Amount of Annual Salaries(B) | Average Annual Salary per Person(B/A) | ||||||
| 10 |
7,312 | 590 | ||||||
| Note: (1) | Excludes 22 executive officers who served primarily as executive officers at our subsidiaries. |
| 7. | Major Shareholders and Related Party Transactions |
| 7.1. | Major Shareholders |
The following table presents information regarding holders of 5% or more of our total issued shares based on our shareholder registry as of December 31, 2023, unless specified otherwise.
| (Unit: shares, %) | ||||||||
| Name |
Number of Shares of Common Stock |
Percentage of Total Issued Shares(1) |
||||||
| Korean National Pension Service |
33,473,917 | 8.30 | ||||||
| JP Morgan Chase Bank, N.A.(2) |
24,923,235 | 6.18 | ||||||
| BlackRock Fund Advisors(3) |
25,050,939 | 6.02 | ||||||
| Notes: (1) | Based on 403,511,072 shares of our common stock issued as of December 31, 2023. |
| (2) | Depositary under the Company’s ADR program. The voting rights are held by ADR holders. |
| (3) | The above number of shares and the percentage of total issued shares held by BlackRock Fund Advisors are as of February 26, 2021 and are based on disclosure made by BlackRock Fund Advisors in a statement of acquisition filing on March 10, 2021. |
| 7.2. | Changes in the Largest Shareholder |
| (Unit: shares, %) | ||||||||||||
| Name of Largest Shareholder |
Date of Change in Largest Shareholder/ Date of Change in Number of Shares Owned |
Number of Shares of Common Stock(1) |
Percentage of Total Issued Shares(2) |
|||||||||
| Korean National Pension Service |
December 31, 2019 | 41,468,003 | 9.97 | |||||||||
| Korean National Pension Service |
February 1, 2020 | 41,462,588 | (3) | 9.97 | ||||||||
| Korean National Pension Service |
October 12, 2020 | 41,402,150 | 9.96 | |||||||||
| Korean National Pension Service |
December 31, 2020 | 41,287,280 | 9.93 | |||||||||
| Korean National Pension Service |
June 30, 2021 | 40,626,942 | 9.77 | |||||||||
| Korean National Pension Service |
December 31, 2021 | 37,626,516 | 9.05 | |||||||||
| Korean National Pension Service |
January 27, 2022 | 37,188,199 | (4) | 8.94 | ||||||||
| Korean National Pension Service |
March 31, 2022 | 36,008,504 | 8.73 | |||||||||
| Korean National Pension Service |
June 30, 2022 | 33,830,623 | 8.20 | |||||||||
| Korean National Pension Service |
September 30, 2022 | 32,594,691 | 7.97 | |||||||||
| Korean National Pension Service |
October 12, 2022 | 32,457,827 | (5) | 7.94 | ||||||||
| Korean National Pension Service |
December 31, 2022 | 32,499,151 | 7.95 | |||||||||
| Korean National Pension Service |
March 31, 2023 | 33,572,593 | 8.21 | |||||||||
| Korean National Pension Service |
June 30, 2023 | 33,183,590 | 8.22 | |||||||||
| Korean National Pension Service |
September 30, 2023 | 35,321,767 | 8.75 | |||||||||
| Korean National Pension Service |
October 6, 2023 | 35,273,578 | 8.74 | |||||||||
| Korean National Pension Service |
December 31, 2023 | 33,473,917 | 8.30 | |||||||||
| Notes: | (1) | Based on our shareholder registry as of the end of each applicable year unless specified otherwise. |
| (2) | Total number of shares of common stock issued as of the following dates: |
From October 19, 2016 to December 12, 2019: 418,111,537
From December 12, 2019 to February 14, 2022: 415,807,920
From February 14, 2022 to August 1, 2022: 412,352,494
From August 1, 2022 to April 4, 2023: 408,897,068
After April 4, 2023: 403,511,072
| (3) | Based on disclosure made by the Korean National Pension Service in a statement of acquisition filing on February 7, 2020. |
| (4) | Based on disclosure made by the Korean National Pension Service in a statement of disposal filing on February 4, 2022. |
| (5) | Based on disclosure made by the Korean National Pension Service in a statement of disposal filing on November 2, 2022. |
| 7.3. | Employee Stock Ownership Association (As of December 31, 2023) |
| (Unit: shares) | ||||
| Company Name |
Number of Shares of Common Stock Owned |
|||
| KB Financial Group Inc. |
69,851 | |||
| Kookmin Bank |
7,909,603 | |||
| KB Securities Co., Ltd. |
66,546 | |||
| KB Insurance Co., Ltd. |
670,785 | |||
| KB Kookmin Card Co., Ltd. |
585,969 | |||
| KB Life Insurance Co., Ltd. |
25,181 | |||
| KB Asset Management Co., Ltd. |
17,177 | |||
| KB Capital Co., Ltd. |
113,971 | |||
| KB Real Estate Trust Co., Ltd. |
24,606 | |||
| KB Savings Bank Co., Ltd. |
12,076 | |||
| KB Investment Co., Ltd. |
2,950 | |||
| KB Data Systems Co., Ltd. |
54,099 | |||
| KB Credit Information Co., Ltd. |
14,883 | |||
| Others(1) |
16,616 | |||
|
|
|
|||
| Total |
9,584,313 | |||
|
|
|
|||
| Note: |
(1) | Shares of common stock attributable to an account owned by the employee stock ownership association of KB Financial Group. |
| 7.4. | Investments in Affiliated Companies |
| (As of December 31, 2023) | (Units: shares, %, millions of Won) | |||||||||||||||||||
| Company Name |
Ending Balance | Total assets as of the latest fiscal year |
Net income(loss) for the latest fiscal year |
|||||||||||||||||
| Number of shares owned |
Ownership | Book value | ||||||||||||||||||
| Kookmin Bank |
404,379,116 | 100 | 14,821,721 | 530,012,853 | 3,261,499 | |||||||||||||||
| KB Securities Co., Ltd. |
298,620,424 | 100 | 3,342,391 | 61,266,990 | 389,618 | |||||||||||||||
| KB Insurance Co., Ltd. |
66,500,000 | 100 | 2,375,430 | 37,729,688 | 752,901 | |||||||||||||||
| KB Kookmin Card Co., Ltd. |
92,000,000 | 100 | 1,953,175 | 29,365,575 | 351,133 | |||||||||||||||
| KB Life Insurance Co., Ltd. (Formerly, Prudential Life Insurance) |
16,201,518 | 100 | 2,795,368 | 31,953,218 | 82,233 | |||||||||||||||
| KB Asset Management Co., Ltd. |
7,667,550 | 100 | 96,312 | 377,919 | 61,525 | |||||||||||||||
| KB Capital Co., Ltd. |
32,175,147 | 100 | 873,811 | 16,560,800 | 186,505 | |||||||||||||||
| KB Real Estate Trust Co., Ltd. |
16,000,000 | 100 | 121,553 | 859,408 | (84,073 | ) | ||||||||||||||
| KB Savings Bank Co., Ltd. |
8,001,912 | 100 | 176,813 | 2,661,999 | (90,568 | ) | ||||||||||||||
| KB Investment Co., Ltd. |
22,525,328 | 100 | 154,910 | 1,544,836 | 9,187 | |||||||||||||||
| KB Data Systems Co., Ltd. |
800,000 | 100 | 6,334 | 61,509 | 125 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total |
— | — | 26,717,818 | — | — | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| 7.5. | Related Party Transactions |
7.5.1. Purchase of capital securities issued by KB Securities Co., Ltd.
| (Unit: in billions of Won) | ||||||||||||||
| Issuer |
Relationship |
Type |
Issue |
Issue Date |
Interest |
Maturity Date |
Use of |
|||||||
| KB Securities Co., Ltd. |
Subsidiary | No. 1 Private Placement of Capital Securities in Won | 200 | March 31, 2022 | 4.300% | March 31, 2052 (may be extended) |
Working capital | |||||||
| (Unit: in billions of Won) | ||||||||||||||
| Issuer |
Relationship |
Type |
Issue |
Issue Date |
Interest |
Maturity Date |
Use of |
|||||||
| KB Securities Co., Ltd. |
Subsidiary | No. 3 Private Placement of Capital Securities in Won | 230 | September 30, 2022 | 5.500% | September 30, 2052 (may be extended) |
Working capital | |||||||
| (Unit: in billions of Won) | ||||||||||||||
| Issuer |
Relationship |
Type |
Issue |
Issue Date |
Interest |
Maturity Date |
Use of |
|||||||
| KB Securities Co., Ltd. |
Subsidiary | No. 4 Private Placement of Capital Securities in Won | 100 | May 8, 2023 | 5.350% | May 8, 2053 (may be extended) |
Working capital | |||||||
7.5.2. Purchase of capital securities issued by KB Capital Co., Ltd.
| (Unit: in billions of Won) | ||||||||||||||
| Issuer |
Relationship |
Type |
Issue |
Issue Date |
Interest |
Maturity Date |
Use of |
|||||||
| KB Capital Co., Ltd. |
Subsidiary | No. 299 Private Placement of Capital Securities in Won | 50 | March 27, 2015 | 6.548%(1) | March 27, 2045 (may be extended) |
Working capital | |||||||
Note: (1) The interest rate has increased from its initial rate due to the non-exercise of the call option.
| (Unit: in billions of Won) | ||||||||||||||
| Issuer |
Relationship |
Type |
Issue |
Issue Date |
Interest |
Maturity Date |
Use of |
|||||||
| KB Capital Co., Ltd.. |
Subsidiary | No. 320 Private Placement of Capital Securities in Won | 50 | September 24, 2015 |
5.989%(1) | September 24, 2045 (may be extended) | Working capital | |||||||
Note: (1) The interest rate has increased from its initial rate due to the non-exercise of the call option.
| (Unit: in billions of Won) | ||||||||||||||
| Issuer |
Relationship |
Type |
Issue |
Issue Date |
Interest |
Maturity Date |
Use of |
|||||||
| KB Capital Co., Ltd. |
Subsidiary | No. 343 Private Placement of Capital Securities in Won | 50 | March 29, 2016 | 6.305%(1) | March 29, 2046 (may be extended) |
Working capital | |||||||
Note: (1) The interest rate has increased from its initial rate due to the non-exercise of the call option.
| (Unit: in billions of Won) | ||||||||||||||
| Issuer |
Relationship |
Type |
Issue |
Issue Date |
Interest |
Maturity Date |
Use of |
|||||||
| KB Capital Co., Ltd. |
Subsidiary | No. 352 Private Placement of Capital Securities in Won | 50 | June 28, 2016 | 6.466%(1) | June 28, 2046 (may be extended) |
Working capital | |||||||
Note: (1) The interest rate has increased from its initial rate due to the non-exercise of the call option.
| (Unit: in billions of Won) | ||||||||||||||
| Issuer |
Relationship |
Type |
Issue |
Issue Date |
Interest |
Maturity Date |
Use of |
|||||||
| KB Capital Co., Ltd. |
Subsidiary | No. 367 Private Placement of Capital Securities in Won | 50 | November 28, 2016 |
6.952%(1) | November 28, 2046 (may be extended) | Working capital | |||||||
Note: (1) The interest rate has increased from its initial rate due to the non-exercise of the call option.
| (Unit: in billions of Won) | ||||||||||||||
| Issuer |
Relationship |
Type |
Issue |
Issue Date |
Interest |
Maturity Date |
Use of |
|||||||
| KB Capital Co., Ltd. |
Subsidiary | No. 378 Private Placement of Capital Securities in Won | 50 | April 27, 2017 | 7.664%(1) | April 27, 2047 (may be extended) | Working capital | |||||||
Note: (1) The interest rate has increased from its initial rate due to the non-exercise of the call option
| (Unit: in billions of Won) | ||||||||||||||
| Issuer |
Relationship |
Type |
Issue Amount |
Issue Date |
Interest |
Maturity Date |
Use of Proceeds |
|||||||
| KB Capital Co., Ltd. |
Subsidiary | No. 460 Private Placement of Capital Securities in Won | 100 | September 25, 2020 | 3.376% | September 25, 2050 (may be extended) | Working capital |
|||||||
| (Unit: in billions of Won) | ||||||||||||||
| Issuer |
Relationship |
Type |
Issue Amount |
Issue Date |
Interest |
Maturity Date |
Use of Proceeds |
|||||||
| KB Capital Co., Ltd. |
Subsidiary | No. 486 Private Placement of Capital Securities in Won | 100 | February 17, 2022 | 4.495% | February 17, 2052 (may be extended) |
Working capital |
|||||||
7.5.3. Purchase of subordinated bonds issued by KB Savings Bank Co., Ltd.
| (Unit: in billions of Won) | ||||||||||||||
| Issuer |
Relationship |
Type |
Issue Amount |
Issue Date |
Interest |
Maturity Date |
Use of Proceeds |
|||||||
| KB Savings Bank Co., Ltd. |
Subsidiary | No. 1 Subordinated Bonds in Won | 70 | June 25, 2021 | 1.600% | June 25, 2031 |
Working capital |
|||||||
7.5.4. Prepayments and Loans to Subsidiaries
| (Unit: in billions of Won) | ||||||||||||||
| Name |
Relationship |
Account |
Loan Amount |
Current Balance |
Credit Offering |
Interest Rate |
Maturity Date |
|||||||
| KB Investment Co., Ltd. |
Subsidiary | Loans(1) | 10 | 10 | July 14, 2017 | 2.654% | July 12, 2024 | |||||||
Notes: (1) Unsecured credit loans.
| (Unit: in billions of Won) | ||||||||||||||
| Name |
Relationship |
Account |
Loan Amount |
Current Balance |
Credit Offering |
Interest Rate |
Maturity Date |
|||||||
| KB Investment Co., Ltd. |
Subsidiary | Loans(1) | 40 | 40 | July 13, 2018 | 2.654% | July 12, 2024 | |||||||
Notes: (1) Unsecured credit loans.
| (Unit: in billions of Won) | ||||||||||||||
| Name |
Relationship |
Account |
Loan Amount |
Current Balance |
Credit Offering |
Interest Rate |
Maturity Date |
|||||||
| KB Investment Co., Ltd. |
Subsidiary | Loans(1) | 70 | 70 | March 8, 2019 | 2.630% | March 8, 2024 | |||||||
Notes: (1) Unsecured credit loans.
| (Unit: in billions of Won) | ||||||||||||||
| Name |
Relationship |
Account |
Loan Amount |
Current Balance |
Credit Offering |
Interest Rate |
Maturity Date |
|||||||
| KB Investment Co., Ltd. |
Subsidiary | Loans(1) | 30 | 30 | March 9, 2020 | 2.630% | March 8, 2024 | |||||||
| Notes: (1) Unsecured credit loans. | ||||||||||||||
| (Unit: in billions of Won) | ||||||||||||||
| Name |
Relationship |
Account |
Loan Amount |
Current Balance |
Credit Offering |
Interest Rate |
Maturity Date |
|||||||
| KB Investment Co., Ltd. |
Subsidiary | Loans(1) | 30 | 30 | July 13, 2020 | 2.654% | July 12, 2024 | |||||||
| Notes: (1) Unsecured credit loans. | ||||||||||||||
| (Unit: in billions of Won) | ||||||||||||||
| Name |
Relationship |
Account |
Loan Amount |
Current Balance |
Credit Offering |
Interest Rate |
Maturity Date |
|||||||
| KB Investment Co., Ltd. |
Subsidiary | Loans(1) | 70 | 70 | December 20, 2021 | 2.685% | December 19, 2024 | |||||||
| Note: (1) Unsecured credit loans. | ||||||||||||||
| (Unit: in billions of Won) | ||||||||||||||
| Name |
Relationship |
Account |
Loan Amount |
Current Balance |
Credit Offering |
Interest Rate |
Maturity Date |
|||||||
| KB Investment Co., Ltd. |
Subsidiary | Loans(1) | 60 | 60 | July 13, 2022 |
2.654% | July 12, 2024 | |||||||
| Note: (1) Unsecured credit loans. | ||||||||||||||
| (Unit: in billions of Won) | ||||||||||||||
| Name |
Relationship |
Account |
Loan Amount |
Current Balance |
Credit Offering |
Interest Rate |
Maturity Date |
|||||||
| KB Investment Co., Ltd. |
Subsidiary |
Loans(1) |
50 | 50 | July 13, 2023 |
2.654% | July 12, 2024 |
|||||||
| Note: (1) Unsecured credit loans. | ||||||||||||||
| (Unit: in billions of Won) | ||||||||||||||
| Name |
Relationship |
Account |
Loan Amount |
Current Balance |
Credit Offering |
Interest Rate |
Maturity Date |
|||||||
| KB Capital Co., Ltd. |
Subsidiary | Loans(1) | 200 | 200 | November 25, 2022 | 2.470% | November 24, 2024 | |||||||
| Note: (1) Unsecured credit loans. | ||||||||||||||
| (Unit: in billions of Won) | ||||||||||||||
| Name |
Relationship |
Account |
Loan Amount |
Current Balance |
Credit Offering |
Interest Rate |
Maturity Date |
|||||||
| KB Real Estate Trust Co., Ltd. |
Subsidiary | Loans(1) | 50 | 50 | July 25, 2023 | 4.275% | July 24, 2024 | |||||||
Note: (1) Unsecured credit loans.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| KB Financial Group Inc. |
||||||||
| (Registrant) | ||||||||
| Date: March 14, 2024 |
By: /s/ Jae Kwan Kim |
|||||||
| (Signature) | ||||||||
| Name: | Jae Kwan Kim | |||||||
| Title: | Senior Executive Vice President and Chief Finance Officer | |||||||