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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 August 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 ☐
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Summary of 2024 First Half Business Report
On August 14, 2024, KB Financial Group Inc. (“KB Financial Group,” the “Company” or the “Group”) filed its business report for the first half of 2024 (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,” the “Company” or the “Group” 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.
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1. Introduction to the Company
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.
| • | 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
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| • | 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
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| • | 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 19, 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
| • | May 18, 2020 |
Added PT Sunindo Kookmin Best Finance as a second-tier subsidiary
| • | July 3, 2020 |
Added PT KB Finansia Multi Finance as a second-tier subsidiary
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| • | 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.)
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| • | 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, 2023 |
Added FineKB Private Equity Fund II as a second-tier subsidiary.
| • | February 1, 2024 |
Added PT Valbury Capital Management 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.)
| • | March 4, 2024 |
Added KB-SBI Global Strategic Capital Fund as a second-tier subsidiary.
| • | June 3, 2024 |
Added KB Fund Partners as a second-tier subsidiary.
| • | June 5, 2024 |
Renamed PT Valbury Capital Management to PT KB Valbury Asset Management
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| 1.3. | Overview of the Business Group |
| (As of June 30, 2024) | ||||||
| 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) Limited | Kookmin Bank | Not listed (Overseas) | ||||
| KB Microfinance Myanmar Co., Ltd. | Kookmin Bank | Not listed (Overseas) | ||||
| KB BANK MYANMAR LTD | Kookmin Bank | Not listed (Overseas) | ||||
| KB PRASAC BANK | Kookmin Bank | Not listed (Overseas) | ||||
| KB Fund Partners | Kookmin Bank | Not listed | ||||
| 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 | ||||
| U-KB Credit No.1 Private Equity I | KB Securities | Not listed | ||||
| KB-SBI Global Strategic Capital Fund | 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 Customer & Service | 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) |
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| (As of June 30, 2024) | ||||||
| Type |
Name of Company |
Controlling Company |
Remarks | |||
| KB Healthcare Co., Ltd. | KB Insurance | Not listed | ||||
| KB Credit Information | 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) | ||||
| PT KB Valbury Asset Management(4) | KB Asset Management | Not listed (Overseas) | ||||
| KB Co-investment 1st Private Equity Fund |
KB Asset Management | Not listed | ||||
| KB Mezzanine Capital 4th Private Equity Fund | 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 PEF | KB Investment | Not listed | ||||
| FineKB Private Equity Fund No.1 | KB Investment | Not listed | ||||
| KB Bio Global Expansion Private Equity Fund No.1 | KB Investment | Not listed | ||||
| KB-Badgers Future Mobility ESG Fund I | KB Investment | Not listed | ||||
| FineKB Private Equity Fund No.2 | 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) | ||||
| 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.
(4) Renamed to PT KB Valbury Asset Management from PT Valbury Capital Management on June 5, 2024.
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1.4.1. Common Shares
Changes in Capital
| (As of June 30, 2024) | (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 June 30, 2024) | (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) |
24,245,382 | — | 24,245,382 | — | ||||||||||||
| Shares Outstanding (C-D) |
379,265,690 | — | 379,265,690 | — | ||||||||||||
| Notes: | (1) On July 21, 2022 the board of directors of the Company resolved to cancel certain of the Company’s treasury shares. The cancelled shares, amounting to 3,455,426 shares, were within the limits of profit available for dividend payment, and as such, there was no change in paid-in capital. |
(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, acquiring a total of 5,584,514 treasury shares. The Company has designated August 14, 2024 as the cancellation date and plans to cancel all of the acquired treasury shares on such date.
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(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 has completed such acquisition, acquiring a total of 4,398,135 treasury shares. The company has designated August 14, 2024 as the cancellation date and plans to cancel all of the acquired treasury shares on such date.
(5) On July 23, 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 400 billion worth of treasury shares. For more information, please refer to the Company’s report on Form 6-K furnished to the Securities and Exchange Commission on July 23, 2024.
1.4.2. Voting Rights
| (As of June 30, 2024) | (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 | 24,245,382 | 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 | 379,265,690 | — | |||||||||
| Preferred shares | — | — | ||||||||||
| Notes: | (1) 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, acquiring a total of 5,584,514 treasury shares. The Company has designated August 14, 2024 as the cancellation date and plans to cancel all of the acquired treasury shares on such date. |
(2) 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 has completed such acquisition, acquiring a total of 4,398,135 treasury shares. The company has designated August 14, 2024 as the cancellation date and plans to cancel all of the acquired treasury shares on such date.
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Since 2022, KB Financial Group has been pursuing a CET1 ratio-based shareholder return policy, whereby the Group’s principle is to utilize a portion of its excess capital exceeding its CET1 ratio of 13% to actively return value to its shareholders.
In order to enhance corporate value and shareholders’ value, the Group manages its shareholder return policy by using the ‘Total Shareholder Return Ratio’ as an indicator for its shareholder return, which includes distribution of cash dividends as well as share buybacks and cancellations. The Group plans to continually try to gradually expand its Total Shareholder Return Ratio.
In 2024, KB Financial Group implemented an ‘Equal Quarterly Dividend Distribution Policy,’ which aims to enhance the predictability of the Group’s dividend payments by paying an equal amount of total dividends each quarter while also maintaining at least the previous year’s level of, and gradually increasing the amount of, its dividends per share. In addition, the Group aims to enhance its shareholders’ value by striving to expand its shareholder return while also remaining flexible about buying back and cancelling its treasury shares in light of changes to its profit levels, the volatility of the financial market and changes in the regulatory landscape. Such cash dividend and share buyback and cancellation plans may be modified depending on economic conditions, the regulatory environment, or the Group’s business objectives.
KB Financial Group aims to manage its CET1 target ratio to be at least 13% (consisting of the regulatory requirement of 10.5% plus a management buffer of 2.5%), which also takes into consideration a capacity for absorbing losses in the event of an economic shock equivalent to that of the level of the Asian financial crisis in 1997.
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 financial institutions, 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.
Furthermore, the Group plans to manage its CET1 ratio at an optimal balance point by increasing its shareholder returns and complying with changes in financial regulations, including the introduction of the counter-cyclical capital buffer and the stress capital buffer, while also maintaining the soundness of the Group’s asset quality.
| (Unit: in millions of Won, except per share amounts and percentages) | ||||||||||||||||
| Items |
January 1, 2024 to June 30, 2024(1) |
January 1, 2023 to December 31, 2023(2) |
January 1, 2022 to December 31, 2022(3) |
|||||||||||||
| Par value per share (Won) |
5,000 | 5,000 | 5,000 | |||||||||||||
| (Consolidated) Net income |
2,912,843 | 4,631,932 | 4,394,830 | |||||||||||||
| (Consolidated) Earnings per share (Won) |
7,041 | 11,580 | 10,955 | |||||||||||||
| Total cash dividends |
600,000 | 1,173,937 | 1,149,421 | |||||||||||||
| Total stock dividends |
— | — | — | |||||||||||||
| (Consolidated) Cash dividend payout ratio (%) |
20.6 | 25.3 | 26.0 | |||||||||||||
| Cash dividend yield (%) |
Common shares | 2.0 | 4.9 | 5.8 | ||||||||||||
| — | — | — | — | |||||||||||||
| Stock dividend yield (%) |
Common shares | — | — | — | ||||||||||||
| — | — | — | — | |||||||||||||
| Cash dividend per share (Won) |
Common shares | 1,575 | 3,060 | 2,950 | ||||||||||||
| — | — | — | — | |||||||||||||
| Stock dividend per share |
Common shares | — | — | — | ||||||||||||
| — | — | — | — | |||||||||||||
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| Notes: | (1) Includes a quarterly dividend amount of Won 300,000 million (Won 784 per common share) in the first quarter of fiscal year 2024, and a quarterly dividend amount of Won 300,000 million (Won 791 per common share) in the second quarter of fiscal year 2024. |
(2) Includes a quarterly dividend amount of Won 195,967 million (Won 510 per common share) in 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, a quarterly dividend amount of Won 194,998 million (Won 510 per common share) in the third quarter of fiscal year 2023, and an annual dividend amount of Won 587,006 million (Won 1,530 per common share).
(3) 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, a quarterly dividend amount of Won 194,817 million (Won 500 per common share) in the third quarter of fiscal year 2022 and an annual dividend amount of Won 564,970 million (Won 1,450 per common share).
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 |
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 |
Table of Contents
| (Unit: in millions of Won) | ||||||||||||||||
| For the six months ended June 30, 2024 |
For the six months ended June 30, 2023 |
For the year ended December 31, 2023 |
For the year ended December 31, 2022 |
|||||||||||||
| Net interest income |
6,357,722 | 5,833,669 | 12,141,717 | 11,515,325 | ||||||||||||
| Interest income |
15,225,533 | 13,997,243 | 29,145,079 | 20,787,577 | ||||||||||||
| Interest expense |
(8,867,811 | ) | (8,163,574 | ) | (17,003,362 | ) | (9,272,252 | ) | ||||||||
| Net fee and commission income |
1,909,728 | 1,865,410 | 3,673,524 | 3,514,902 | ||||||||||||
| Fee and commission income |
2,726,904 | 2,696,416 | 5,368,074 | 5,125,930 | ||||||||||||
| Fee and commission expense |
(817,176 | ) | (831,006 | ) | (1,694,550 | ) | (1,611,028 | ) | ||||||||
| Insurance service result |
1,018,102 | 832,222 | 1,422,952 | 1,311,091 | ||||||||||||
| Insurance income |
5,568,240 | 5,339,779 | 10,978,808 | 10,072,490 | ||||||||||||
| Insurance expense |
(4,550,138 | ) | (4,507,557 | ) | (9,555,856 | ) | (8,761,399 | ) | ||||||||
| Net gains (losses) on financial assets/liabilities at fair value through profit or loss |
570,710 | 1,159,314 | 2,163,065 | (1,139,818 | ) | |||||||||||
| Other insurance finance income (expense) |
(304,782 | ) | (300,845 | ) | (459,135 | ) | 841,227 | |||||||||
| Net other operating expenses |
(690,568 | ) | (718,208 | ) | (2,712,989 | ) | (2,262,123 | ) | ||||||||
| General and administrative expenses |
(3,222,127 | ) | (3,159,228 | ) | (6,647,406 | ) | (6,643,654 | ) | ||||||||
| Operating profit before provision for credit losses |
5,638,785 | 5,512,334 | 9,581,728 | 7,136,950 | ||||||||||||
| Provision for credit losses |
(981,088 | ) | (1,319,485 | ) | (3,146,409 | ) | (1,847,775 | ) | ||||||||
| Net operating profit |
4,657,697 | 4,192,849 | 6,435,319 | 5,289,175 | ||||||||||||
| Notes: | (1) Based on K-IFRS (on a consolidated basis). |
(2) KB Financial Group’s results of operations for the year ended December 31, 2022 above have been restated retrospectively to reflect the application of K-IFRS 1117.
(3) KB Financial Group’s results of operations for the six months ended June 30, 2023 above have been restated retrospectively to reflect the application of the variable fee approach for measuring insurance liabilities in accordance with the Financial Supervisory Service’s guidelines on actuarial assumptions.
Table of Contents
| 2.2. | Sources and Uses of Funds |
| 2.2.1. | Sources of Funds |
| (Unit: in millions of Won) | ||||||||||||||||||||||||||||||||||||||
| For the six months ended June 30, 2024 |
For the year ended December 31, 2023 |
For the year ended December 31, 2022 |
||||||||||||||||||||||||||||||||||||
| Average Balance |
Interest Rate (%) |
Ratio (%) |
Average Balance |
Interest Rate (%) |
Ratio (%) |
Average Balance |
Interest Rate (%) |
Ratio (%) |
||||||||||||||||||||||||||||||
| Won Currency |
Deposits |
355,075,808 | 2.47 | 46.09 | 338,691,272 | 2.52 | 45.63 | 333,078,280 | 1.27 | 47.87 | ||||||||||||||||||||||||||||
| Certificate of deposit |
12,047,259 | 3.95 | 1.56 | 10,417,992 | 4.07 | 1.40 | 5,511,822 | 2.35 | 0.79 | |||||||||||||||||||||||||||||
| Borrowings |
34,737,985 | 3.43 | 4.51 | 33,891,286 | 3.27 | 4.57 | 31,064,028 | 1.91 | 4.46 | |||||||||||||||||||||||||||||
| Call money |
1,242,479 | 3.53 | 0.16 | 1,384,033 | 3.52 | 0.19 | 1,314,525 | 2.02 | 0.19 | |||||||||||||||||||||||||||||
| Debentures |
56,666,042 | 3.63 | 7.35 | 56,008,914 | 3.36 | 7.55 | 58,290,290 | 2.39 | 8.38 | |||||||||||||||||||||||||||||
| Others |
23,013,894 | 4.19 | 2.99 | 22,355,370 | 4.37 | 3.01 | 20,866,612 | 2.34 | 3.00 | |||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
| Subtotal |
482,783,467 | 2.80 | 62.66 | 462,748,867 | 2.81 | 62.35 | 450,125,557 | 1.52 | 64.69 | |||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
| Foreign Currency |
Deposits |
37,183,887 | 4.20 | 4.83 | 36,526,597 | 3.88 | 4.92 | 34,076,754 | 2.09 | 4.90 | ||||||||||||||||||||||||||||
| Borrowings |
21,667,277 | 4.15 | 2.81 | 24,087,170 | 3.77 | 3.25 | 22,970,783 | 1.90 | 3.30 | |||||||||||||||||||||||||||||
| Call money |
2,298,973 | 3.83 | 0.30 | 2,014,719 | 3.19 | 0.27 | 1,572,913 | 1.87 | 0.23 | |||||||||||||||||||||||||||||
| Debentures |
14,800,768 | 3.21 | 1.92 | 13,607,050 | 3.14 | 1.83 | 11,978,139 | 2.09 | 1.72 | |||||||||||||||||||||||||||||
| Others |
1,050,751 | 4.37 | 0.13 | 1,067,253 | 3.51 | 0.14 | 1,685,165 | 1.46 | 0.24 | |||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
| Subtotal |
77,001,656 | 3.99 | 9.99 | 77,302,789 | 3.69 | 10.41 | 72,283,754 | 2.01 | 10.39 | |||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
| Others |
Total shareholders’ equity |
99,710,034 | — | 12.94 | 95,694,663 | — | 12.89 | 67,612,953 | — | 9.72 | ||||||||||||||||||||||||||||
| Allowances |
1,742,037 | — | 0.23 | 1,061,174 | — | 0.14 | 1,128,687 | — | 0.16 | |||||||||||||||||||||||||||||
| Others |
109,211,341 | — | 14.18 | 105,428,693 | — | 14.21 | 104,628,576 | — | 15.04 | |||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
| Subtotal |
210,663,412 | — | 27.35 | 202,184,530 | — | 27.24 | 173,370,216 | — | 24.92 | |||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
| Total |
770,448,535 | — | 100.00 | 742,236,186 | — | 100.00 | 695,779,527 | — | 100.00 | |||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
| Notes: | (1) Based on K-IFRS (on a consolidated basis). |
(2) The figures for the six months ended June 30, 2024 and 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.
Table of Contents
| 2.2.2. | Uses of Funds |
| (Unit: in millions of Won) | ||||||||||||||||||||||||||||||||||||||
| For the six months ended June 30, 2024 |
For the year ended December 31, 2023 |
For the year ended December 31, 2022 |
||||||||||||||||||||||||||||||||||||
| Average Balance |
Interest Rate (%) |
Ratio (%) |
Average Balance |
Interest Rate (%) |
Ratio (%) |
Average Balance |
Interest Rate (%) |
Ratio (%) |
||||||||||||||||||||||||||||||
| Won Currency |
Due from banks |
17,372,394 | 0.81 | 2.25 | 16,471,530 | 0.92 | 2.22 | 16,038,688 | 0.63 | 2.31 | ||||||||||||||||||||||||||||
| Securities |
211,285,189 | 2.62 | 27.42 | 199,538,723 | 2.72 | 26.88 | 166,950,909 | 1.17 | 23.99 | |||||||||||||||||||||||||||||
| Loans |
383,116,418 | 4.78 | 49.73 | 370,190,671 | 4.81 | 49.88 | 361,188,713 | 3.51 | 51.91 | |||||||||||||||||||||||||||||
| Guarantee payments under payment guarantee |
5,493 | 1.36 | — | 5,114 | 0.81 | — | 6,891 | 0.19 | — | |||||||||||||||||||||||||||||
| Call loan |
367,311 | 3.57 | 0.05 | 286,735 | 3.62 | 0.04 | 694,196 | 2.02 | 0.10 | |||||||||||||||||||||||||||||
| Private placement corporate bonds |
1,127,133 | 2.97 | 0.15 | 1,206,821 | 2.90 | 0.16 | 828,547 | 3.43 | 0.12 | |||||||||||||||||||||||||||||
| Credit cards |
23,144,347 | 8.09 | 3.00 | 22,789,066 | 7.93 | 3.07 | 22,069,290 | 6.94 | 3.17 | |||||||||||||||||||||||||||||
| Others |
3,823,745 | 17.49 | 0.50 | 3,415,038 | 17.44 | 0.46 | 4,438,987 | 9.45 | 0.64 | |||||||||||||||||||||||||||||
| Allowance |
(4,157,607 | ) | — | (0.54 | ) | (3,561,894 | ) | — | (0.48 | ) | (2,814,578 | ) | — | (0.40 | ) | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
| Subtotal |
636,084,423 | 4.18 | 82.56 | 610,341,804 | 4.23 | 82.23 | 569,401,643 | 2.94 | 81.84 | |||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
| Foreign Currency |
Due from banks |
9,821,113 | 2.92 | 1.27 | 9,292,372 | 2.28 | 1.25 | 9,239,891 | 0.76 | 1.33 | ||||||||||||||||||||||||||||
| Securities |
25,820,359 | 4.69 | 3.35 | 25,883,766 | 4.16 | 3.49 | 20,610,143 | 1.81 | 2.96 | |||||||||||||||||||||||||||||
| Loans |
39,479,364 | 7.18 | 5.12 | 39,403,960 | 6.97 | 5.31 | 37,267,941 | 5.32 | 5.36 | |||||||||||||||||||||||||||||
| Call loan |
7,059,207 | 5.04 | 0.92 | 7,399,847 | 4.49 | 1.00 | 8,829,592 | 2.12 | 1.27 | |||||||||||||||||||||||||||||
| Bills bought |
1,676,430 | 5.68 | 0.22 | 2,047,390 | 5.58 | 0.28 | 2,541,838 | 2.32 | 0.37 | |||||||||||||||||||||||||||||
| Allowance |
(1,554,974 | ) | — | (0.20 | ) | (1,322,830 | ) | — | (0.18 | ) | (1,021,192 | ) | — | (0.15 | ) | |||||||||||||||||||||||
| Others |
3,010,629 | — | 0.39 | 3,070,684 | — | 0.41 | 2,248,320 | — | 0.32 | |||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
| Subtotal |
85,312,128 | 5.69 | 11.07 | 85,775,189 | 5.30 | 11.56 | 79,716,533 | 3.38 | 11.46 | |||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
| Others |
Cash |
1,597,163 | — | 0.21 | 1,681,170 | — | 0.23 | 1,831,093 | — | 0.26 | ||||||||||||||||||||||||||||
| Fixed assets held for business |
9,555,398 | — | 1.24 | 8,813,616 | — | 1.19 | 8,077,249 | — | 1.16 | |||||||||||||||||||||||||||||
| Others |
37,899,423 | — | 4.92 | 35,624,407 | — | 4.79 | 36,753,009 | — | 5.28 | |||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
| Subtotal |
49,051,984 | — | 6.37 | 46,119,193 | — | 6.21 | 46,661,351 | — | 6.70 | |||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
| Total |
770,448,535 | — | 100.00 | 742,236,186 | — | 100.00 | 695,779,527 | — | 100.00 | |||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
| Notes: | (1) Based on K-IFRS (on a consolidated basis). |
(2) The figures for the six months ended June 30, 2024 and 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.
Table of Contents
| 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 June 30, 2024 | As of December 31, 2023 | As of December 31, 2022 | ||||||||||
| Total capital (A) |
55,570 | 53,744 | 48,970 | |||||||||
| Risk-weighted assets (B) |
334,237 | 321,319 | 302,984 | |||||||||
| BIS ratio (A/B) |
16.63 | % | 16.73 | % | 16.16 | % | ||||||
| Notes: | (1) Calculated in accordance with Basel III. |
| (2) The figures as of June 30, 2024 are preliminary. |
| Kookmin Bank |
(Unit: in billions of Won, except percentages) | |||||||||||
| As of June 30, 2024 | As of December 31, 2023 | As of December 31, 2022 | ||||||||||
| Total capital (A) |
40,722 | 39,040 | 36,233 | |||||||||
| Risk-weighted assets (B) |
228,911 | 215,962 | 207,558 | |||||||||
| BIS ratio (A/B) |
17.79 | % | 18.08 | % | 17.46 | % | ||||||
| Notes: | (1) Calculated in accordance with Basel III. |
| (2) The figures as of June 30, 2024 are preliminary. |
| KB Securities Co., Ltd. |
(Unit: in billions of Won, except percentages) | |||||||||||
| As of June 30, 2024 | As of December 31, 2023 | As of December 31, 2022 | ||||||||||
| Net operating capital (A) |
5,168 | 5,058 | 4,554 | |||||||||
| Total amount at risk (B) |
2,930 | 2,934 | 2,655 | |||||||||
| Maintenance equity margin (C) |
134 | 134 | 134 | |||||||||
| Net capital ratio (A-B)/(C) |
1,667.36 | % | 1,582.09 | % | 1,414.74 | % | ||||||
| Capital surplus (A-B) |
2,238 | 2,124 | 1,899 | |||||||||
| KB Insurance Co., Ltd. |
(Unit: in billions of Won, except percentages) | |||||||||||
| As of June 30, 2024 | As of December 31, 2023 | As of December 31, 2022 | ||||||||||
| Available capital (A) |
12,213 | 11,669 | 4,608 | |||||||||
| Required capital (B) |
6,021 | 5,404 | 2,684 | |||||||||
| Capital Adequacy ratio (A/B)(2) |
202.84 | % | 215.94 | % | 171.66 | % | ||||||
| Notes: | (1) The figures as of June 30, 2024 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 figures as of June 30, 2024 and December 31, 2023 were calculated based on the K-ICS method, whereas the figures as of December 31, 2022 were calculated based on the RBC method. |
| 2.3.2. | Overseas Credit Ratings |
| (As of June 30, 2024) | ||||||||
| Rating Company |
Moody’s | S&P | ||||||
| Type |
Long-term | Short-term | Long-term | Short-term | ||||
| Credit Rating |
A1 | P-1 | A | A-1 | ||||
Table of Contents
| 2.3.3. | Domestic Credit Ratings |
| Date of |
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) | |||
| 2/15/2024 | Contingent Convertible Bonds | AA- | Korea Ratings (AAA ~ D) / KIS Ratings (AAA ~ D) / NICE Investors Service (AAA ~ D) | |||
| 6/26/2024 | 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 | ||
| Kookmin Bank |
January 28, 2019 | 615 | ||
| January 20, 2020 | 462 | |||
| January 30, 2021 | 800 | |||
| January 21, 2022 | 674 | |||
| January 18, 2023 | 713 | |||
| January 19, 2024 | 674 |
Table of Contents
| 2.3.5. | Other Factors Affecting the Group’s Financial Condition and Results of Operations |
The economic outlook for Korea and its financial services sector in 2024 and for the foreseeable future remains highly uncertain as a result of, among others, (i) volatile conditions in the Korean and global economies and financial markets resulting from uncertainties in the election outcomes in key countries, interest and exchange rate fluctuations, lower consumer confidence, stock market and real estate market volatility and changes in fiscal and monetary policies, and (ii) adverse conditions in the Korean and global economies and financial markets resulting from geopolitical uncertainties, including as a result of Russia’s invasion of Ukraine and its effects on global commodity prices, accelerating de-globalization trends and a potential economic slowdown or credit-related challenges in China.
| 3. | Financial Information |
| 3.1. | Consolidated Financial Information |
| 3.1.1. | Consolidated Statements of Financial Position |
| (Unit: in millions of Won) | ||||||||
| As of June 30, 2024 | As of December 31, 2023 | |||||||
| Cash and due from financial institutions |
31,053,065 | 29,836,311 | ||||||
| Financial assets at fair value through profit or loss |
77,708,742 | 77,038,267 | ||||||
| Derivative financial assets |
8,610,997 | 6,157,628 | ||||||
| Loans measured at amortized cost |
455,873,383 | 444,805,287 | ||||||
| Financial investments |
128,820,761 | 122,199,529 | ||||||
| Investments in associates and joint ventures |
705,650 | 722,222 | ||||||
| Insurance assets |
294,919 | 229,640 | ||||||
| Reinsurance assets |
1,531,915 | 1,655,168 | ||||||
| Property and equipment |
5,310,855 | 4,945,699 | ||||||
| Investment property |
3,929,357 | 4,109,784 | ||||||
| Intangible assets |
2,034,874 | 1,950,858 | ||||||
| Net defined benefit assets |
380,238 | 374,090 | ||||||
| Current income tax assets |
295,087 | 244,317 | ||||||
| Deferred income tax assets |
275,319 | 274,225 | ||||||
| Assets held for sale |
142,065 | 208,230 | ||||||
| Assets of a disposal group held for sale |
— | — | ||||||
| Other assets |
25,265,095 | 20,986,897 | ||||||
| Total assets |
742,232,322 | 715,738,152 | ||||||
Table of Contents
| As of June 30, 2024 | As of December 31, 2023 | |||||||
| Financial liabilities at fair value through profit or loss |
10,792,237 | 10,920,435 | ||||||
| Derivative financial liabilities |
8,454,695 | 6,210,639 | ||||||
| Deposits |
420,217,889 | 406,512,434 | ||||||
| Borrowings |
67,079,671 | 69,583,561 | ||||||
| Debentures |
72,147,778 | 69,176,668 | ||||||
| Insurance contract liabilities |
52,788,786 | 50,308,552 | ||||||
| Reinsurance contract liabilities |
38,858 | 36,030 | ||||||
| Provisions |
1,728,300 | 1,444,418 | ||||||
| Net defined benefit liabilities |
77,165 | 81,869 | ||||||
| Current income tax liabilities |
320,674 | 145,335 | ||||||
| Deferred income tax liabilities |
1,853,481 | 2,179,966 | ||||||
| Other liabilities |
46,910,186 | 40,264,935 | ||||||
|
|
|
|
|
|||||
| Total liabilities |
682,409,720 | 656,864,842 | ||||||
|
|
|
|
|
|||||
| Equity attributable to shareholders of the parent company |
57,152,838 | 56,929,804 | ||||||
| Share capital |
2,090,558 | 2,090,558 | ||||||
| Hybrid securities |
5,082,553 | 5,032,803 | ||||||
| Capital surplus |
16,646,105 | 16,647,916 | ||||||
| Accumulated other comprehensive income (loss) |
765,431 | 2,295,165 | ||||||
| Retained earnings |
33,819,428 | 32,029,199 | ||||||
| Treasury shares |
(1,251,237 | ) | (1,165,837 | ) | ||||
| Non-controlling interests |
2,669,764 | 1,943,506 | ||||||
| Total equity |
59,822,602 | 58,873,310 | ||||||
| Total liabilities and equity |
742,232,322 | 715,738,152 | ||||||
|
|
|
|
|
|||||
| Number of companies included as a consolidated entity |
348 | 371 | ||||||
|
|
|
|
|
|||||
Table of Contents
| 3.1.2. | Consolidated Statements of Comprehensive Income |
| (Unit: in millions of Won, except per share amounts) | ||||||||||||||||
| First Half of 2024 | First Half of 2023 | |||||||||||||||
| Second Quarter | Cumulative | Second Quarter | Cumulative | |||||||||||||
| Net interest income |
3,206,237 | 6,357,722 | 3,009,804 | 5,833,669 | ||||||||||||
| Interest income |
7,611,571 | 15,225,533 | 7,130,660 | 13,997,243 | ||||||||||||
| Interest income from financial instruments at fair value through other comprehensive income and amortized cost |
7,243,831 | 14,472,708 | 6,783,763 | 13,311,319 | ||||||||||||
| Interest income from financial instruments at fair value through profit or loss |
359,835 | 736,588 | 341,149 | 674,626 | ||||||||||||
| Insurance finance interest income |
7,905 | 16,237 | 5,748 | 11,298 | ||||||||||||
| Interest expense |
(4,405,334 | ) | (8,867,811 | ) | (4,120,856 | ) | (8,163,574 | ) | ||||||||
| Interest expense |
(4,012,831 | ) | (8,079,357 | ) | (3,728,416 | ) | (7,368,296 | ) | ||||||||
| Insurance finance interest expense |
(392,503 | ) | (788,454 | ) | (392,440 | ) | (795,278 | ) | ||||||||
| Net fee and commission income |
919,635 | 1,909,728 | 951,404 | 1,865,410 | ||||||||||||
| Fee and commission income |
1,330,604 | 2,726,904 | 1,361,714 | 2,696,416 | ||||||||||||
| Fee and commission expense |
(410,969 | ) | (817,176 | ) | (410,310 | ) | (831,006 | ) | ||||||||
| Net insurance income |
479,723 | 1,018,102 | 439,815 | 832,222 | ||||||||||||
| Insurance income |
2,840,682 | 5,568,240 | 2,676,645 | 5,339,779 | ||||||||||||
| Insurance income |
2,740,059 | 5,429,533 | 2,565,710 | 5,064,258 | ||||||||||||
| Reinsurance income |
100,623 | 138,707 | 110,935 | 275,521 | ||||||||||||
| Insurance expense |
(2,360,959 | ) | (4,550,138 | ) | (2,236,830 | ) | (4,507,557 | ) | ||||||||
| Insurance service expense |
(2,310,454 | ) | (4,103,681 | ) | (2,029,822 | ) | (4,103,048 | ) | ||||||||
| Reinsurance expense |
(230,505 | ) | (446,457 | ) | (207,008 | ) | (404,509 | ) | ||||||||
| Net gains on financial assets/liabilities at fair value through profit or loss |
321,577 | 570,710 | 385,907 | (1,159,314 | ) | |||||||||||
| Other insurance finance expenses |
(192,356 | ) | (304,782 | ) | (31,785 | ) | (300,845 | ) | ||||||||
| Net other operating expenses |
(285,858 | ) | (690,568 | ) | (458,084 | ) | (718,208 | ) | ||||||||
| General and administrative expenses |
(1,593,891 | ) | (3,222,127 | ) | (1,592,942 | ) | (3,159,228 | ) | ||||||||
| Operating income before provision for credit losses |
2,855,067 | 5,638,785 | 2,704,119 | 5,512,334 | ||||||||||||
| Provision for credit losses |
(552,818 | ) | (981,088 | ) | (651,297 | ) | (1,319,485 | ) | ||||||||
| Net operating income |
2,302,249 | 4,657,697 | 2,052,822 | 4,192,849 | ||||||||||||
| Net non-operating expenses |
66,983 | (880,981 | ) | (92,353 | ) | (188,514 | ) | |||||||||
| Share of loss of associates and joint ventures |
(694 | ) | (2,113 | ) | 6,945 | 4,449 | ||||||||||
| Net other non-operating expenses |
67,677 | (878,868 | ) | (99,298 | ) | (192,963 | ) | |||||||||
| Profit before income tax expense |
2,369,232 | 3,776,716 | 1,960,469 | 4,004,335 | ||||||||||||
| Income tax expense |
(658,567 | ) | (1,002,837 | ) | (455,838 | ) | (989,413 | ) | ||||||||
| Profit for the period |
1,710,665 | 2,773,879 | 1,504,631 | 3,014,922 | ||||||||||||
| Other comprehensive income (expenses) for the period, net of tax |
(761,201 | ) | (1,521,003 | ) | 141,976 | 626,771 | ||||||||||
Table of Contents
| First Half of 2024 | First Half of 2023 | |||||||||||||||
| Second Quarter | Cumulative | Second Quarter | Cumulative | |||||||||||||
| Items that will not be reclassified to profit or loss: |
||||||||||||||||
| Remeasurements of net defined benefit liabilities |
2,756 | 11,751 | 4,112 | 9,940 | ||||||||||||
| Share of other comprehensive loss of associates and joint ventures |
— | — | — | (2 | ) | |||||||||||
| Losses on equity securities at fair value through other comprehensive income |
(230,369 | ) | (242,935 | ) | (13,261 | ) | (13,371 | ) | ||||||||
| Fair value changes of financial liabilities designated at fair value through profit or loss due to own credit risk |
(2,040 | ) | (10,883 | ) | (610 | ) | (50,585 | ) | ||||||||
| Items that may be reclassified subsequently to profit or loss: |
||||||||||||||||
| Currency translation differences |
119,469 | 282,414 | (23,861 | ) | 91,958 | |||||||||||
| Gains (losses) on debt securities at fair value through other comprehensive income |
559,490 | (97,737 | ) | (698,933 | ) | 826,524 | ||||||||||
| Share of other comprehensive loss of associates and joint ventures |
56 | (86 | ) | 2,977 | (1,181 | ) | ||||||||||
| Losses on cash flow hedging instruments |
5,615 | (31,182 | ) | 21,233 | (14,232 | ) | ||||||||||
| Losses on hedging instruments of net investments in foreign operations |
(40,016 | ) | (91,219 | ) | (9,263 | ) | (39,396 | ) | ||||||||
| Insurance finance expenses |
(1,176,162 | ) | (1,341,126 | ) | 859,582 | (182,884 | ) | |||||||||
| Total comprehensive income for the period |
949,464 | 1,252,876 | 1,646,607 | 3,641,693 | ||||||||||||
| Profit attributable to: |
||||||||||||||||
| Shareholders of the parent company |
1,732,210 | 2,781,343 | 1,498,916 | 3,007,624 | ||||||||||||
| Non-controlling interests |
(21,545 | ) | (7,464 | ) | 5,715 | 7,298 | ||||||||||
| Total comprehensive income for the period attributable to: |
||||||||||||||||
| Shareholders of the parent company |
966,838 | 1,248,117 | 1,642,405 | 3,624,787 | ||||||||||||
| Non-controlling interests |
(17,374 | ) | 4,759 | 4,202 | 16,906 | |||||||||||
| Earnings per share |
||||||||||||||||
| Basic earnings per share (Won) |
4,417 | 7,041 | 3,776 | 7,558 | ||||||||||||
| Diluted earnings per share (Won) |
4,377 | 6,952 | 3,694 | 7,388 | ||||||||||||
| Notes: | (1) | The figures for the six months ended June 30, 2024 have been restated retrospectively to reflect the application of the variable fee approach for measuring insurance liabilities in accordance with the Financial Supervisory Service’s guidelines on actuarial assumptions. |
Table of Contents
| 3.2. | Separate Financial Information |
| 3.2.1. | Separate Statements of Financial Position |
| (Unit: in millions of Won) | ||||||||
| As of June 30, 2024 | As of December 31, 2023 | |||||||
| Cash and due from financial institutions |
1,346,198 | 256,337 | ||||||
| Financial assets at fair value through profit or loss |
1,227,370 | 1,376,423 | ||||||
| Loans measured at amortized cost |
712,960 | 608,286 | ||||||
| Investments in subsidiaries |
26,717,817 | 26,717,817 | ||||||
| Property and equipment |
3,156 | 3,080 | ||||||
| Intangible assets |
14,819 | 15,954 | ||||||
| Net defined benefit assets |
2,923 | 3,694 | ||||||
| Deferred income tax assets |
5,823 | 4,492 | ||||||
| Other assets |
691,100 | 542,815 | ||||||
|
|
|
|
|
|||||
| Total assets |
30,722,166 | 29,528,898 | ||||||
|
|
|
|
|
|||||
| Borrowings |
865,000 | 100,000 | ||||||
| Debentures |
2,982,533 | 3,871,820 | ||||||
| Current income tax liabilities |
294,151 | 104,299 | ||||||
| Other liabilities |
351,766 | 410,704 | ||||||
|
|
|
|
|
|||||
| Total liabilities |
4,493,450 | 4,486,823 | ||||||
|
|
|
|
|
|||||
| Share capital |
2,090,558 | 2,090,558 | ||||||
| Hybrid securities |
5,082,359 | 5,032,518 | ||||||
| Capital surplus |
14,754,475 | 14,754,747 | ||||||
| Accumulated other comprehensive loss |
(6,773 | ) | (6,809 | ) | ||||
| Retained earnings |
5,559,334 | 4,336,898 | ||||||
| Treasury Shares |
(1,251,237 | ) | (1,165,837 | ) | ||||
|
|
|
|
|
|||||
| Total equity |
26,228,716 | 25,042,075 | ||||||
|
|
|
|
|
|||||
| Total liabilities and equity |
30,722,166 | 29,528,898 | ||||||
|
|
|
|
|
|||||
Table of Contents
| 3.2.2. | Separate Statements of Comprehensive Income |
| (Unit: in millions of Won, except per share amounts) | ||||||||||||||||
| First Half of 2024 | First Half of 2023 | |||||||||||||||
| Second Quarter | Cumulative | Second Quarter | Cumulative | |||||||||||||
| Net interest expense |
(12,312 | ) | (26,037 | ) | (13,380 | ) | (33,434 | ) | ||||||||
| Interest income |
12,546 | 22,363 | 11,479 | 18,149 | ||||||||||||
| Interest income from financial instruments at amortized cost |
11,845 | 20,960 | 10,800 | 16,351 | ||||||||||||
| Interest income from financial instruments at fair value through profit or loss |
701 | 1,403 | 679 | 1,798 | ||||||||||||
| Interest expense |
(24,858 | ) | (48,400 | ) | (24,859 | ) | (51,583 | ) | ||||||||
| Net fee and commission expense |
(2,424 | ) | (3,566 | ) | (3,089 | ) | (4,336 | ) | ||||||||
| Fee and commission income |
616 | 994 | 409 | 781 | ||||||||||||
| Fee and commission expense |
(3,040 | ) | (4,560 | ) | (3,498 | ) | (5,117 | ) | ||||||||
| Net gains (losses) on financial assets at fair value through profit or loss |
27,755 | 43,334 | 6,242 | 51,670 | ||||||||||||
| Net other operating income |
— | 2,243,250 | — | 2,192,380 | ||||||||||||
| General and administrative expenses |
(23,843 | ) | (48,030 | ) | (22,979 | ) | (45,881 | ) | ||||||||
| Operating profit before provision for credit losses |
(10,824 | ) | 2,208,951 | (33,206 | ) | 2,160,399 | ||||||||||
| Provision for credit losses |
(249 | ) | (345 | ) | (7 | ) | (7 | ) | ||||||||
| Operating profit |
(11,073 | ) | 2,208,606 | (33,213 | ) | 2,160,392 | ||||||||||
| Net non-operating income |
567 | (79 | ) | 4,393 | 4,406 | |||||||||||
| Profit before income tax |
(10,506 | ) | 2,208,527 | (28,820 | ) | 2,164,798 | ||||||||||
| Income tax income (expense) |
(2,054 | ) | 1,532 | 2,370 | (8,321 | ) | ||||||||||
| Profit for the year |
(12,560 | ) | 2,210,059 | (26,450 | ) | 2,156,477 | ||||||||||
| Other comprehensive income (loss) for the year, net of tax |
(11 | ) | 36 | 8 | 25 | |||||||||||
| Items that will not be reclassified to profit or loss: |
||||||||||||||||
| Remeasurements of net defined benefit liabilities |
(11 | ) | 36 | 8 | 25 | |||||||||||
| Total comprehensive income for the year |
(12,571 | ) | 2,210,095 | (26,442 | ) | 2,156,502 | ||||||||||
| Earnings per share |
||||||||||||||||
| Basic earnings per share (Won) |
(171 | ) | 5,541 | (194 | ) | 5,354 | ||||||||||
| Diluted earnings per share (Won) |
(169 | ) | 5,470 | (188 | ) | 5,234 | ||||||||||
Table of Contents
| 3.3. | Other Selected Financial Data |
| 3.3.1. | Won-denominated Liquidity Ratio |
| (Unit: in millions of Won, except percentages) | ||||||||||||
| As of June 30, 2024 | As of December 31, 2023 | As of December 31, 2022 | ||||||||||
| Current assets in Won (A) |
2,117,438 | 656,555 | 959,935 | |||||||||
| Current liabilities in Won (B) |
598,144 | 255,693 | 592,727 | |||||||||
| Liquidity ratio (A/B) |
354.00 | % | 256.77 | % | 161.95 | % | ||||||
| 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 six months ended June 30, 2024 |
For the year ended December 31, 2023 |
For the year ended December 31, 2022 |
||||||||||
| Net income as a percentage of average total assets (ROA) |
0.76 | 0.65 | 0.60 | |||||||||
| Net income as a percentage of average shareholders’ equity (ROE) |
9.80 | 8.37 | 9.24 | |||||||||
| Note: | Based on K-IFRS (on a consolidated basis). |
| 3.3.3. | 20 Largest Exposures of Kookmin Bank by Borrower (As of June 30, 2024) |
| (Unit: in billions of Won) | ||||
| Company |
Credit Extended | |||
| LG Display Co., Ltd. |
1,673 | |||
| Samsung Electronics Co., Ltd. |
1,454 | |||
| Samsung Heavy Industries Co., Ltd. |
1,311 | |||
| KB Kookmin Card Co., Ltd |
1,291 | |||
| E-MART Inc. |
1,160 | |||
| SK on Co., Ltd. |
1,138 | |||
| HD Hyundai Heavy Industries Co., Ltd. |
1,131 | |||
| Hanwha Solutions Corporation |
1,025 | |||
| Samsung SDI Co., Ltd. |
990 | |||
| Strada Holdco L.P. |
937 | |||
| LG Energy Solution, Ltd. |
930 | |||
| Construction Guarantee |
861 | |||
| LS MnM Inc. |
796 | |||
| SK Inc. |
787 | |||
| CJ CheilJedang Corporation |
779 | |||
| Posco International Corporation |
746 | |||
| Hyundai Samho Heavy Industries Co., Ltd. |
736 | |||
| SK hynix Inc. |
725 | |||
| Shinhan Card Co., Ltd. |
687 | |||
| S-Oil Corporation. |
675 | |||
|
|
|
|||
| Total |
19,832 | |||
|
|
|
|||
Table of Contents
| 3.3.4. | 10 Largest Exposures of Kookmin Bank by Chaebol Group (As of June 30, 2024) |
| (Unit: in billions of Won) | ||||
| Group |
Credit Extended | |||
| SK |
5,853 | |||
| Samsung |
5,557 | |||
| LG |
4,417 | |||
| Hyundai Motor |
4,196 | |||
| Lotte |
3,822 | |||
| Hanwha |
3,630 | |||
| HD Hyundai |
3,468 | |||
| POSCO |
1,797 | |||
| GS |
1,751 | |||
| Shinsegae |
1,671 | |||
|
|
|
|||
| Total |
36,163 | |||
|
|
|
|||
| 3.3.5. | Kookmin Bank’s Loan Concentration by Industry (As of June 30, 2024) |
| (Unit: in billions of Won, except percentages) | ||||||||
| Industry |
Total Credit | Percentage of Total Credit |
||||||
| Manufacturing |
57,012 | 26.1 | ||||||
| Construction |
5,386 | 2.5 | ||||||
| Real estate activities |
55,041 | 25.2 | ||||||
| Wholesale and retail trade |
30,273 | 13.8 | ||||||
| Accommodation and food service activities |
11,243 | 5.1 | ||||||
| Financial activities |
9,485 | 4.3 | ||||||
| Others |
50,175 | 23.0 | ||||||
|
|
|
|
|
|||||
| Total |
218,616 | 100.0 | ||||||
|
|
|
|
|
|||||
Table of Contents
3.3.6. Top 20 Non-Performing Loans of Kookmin Bank (As of June 30, 2024)
| (Unit: in billions of Won) | ||||||||||
| Borrower |
Industry |
Total Credit | Allowance for Loan Losses |
|||||||
| Borrower A |
Real estate activities | 262.1 | 131.8 | |||||||
| Borrower B |
Real estate activities | 56.6 | 8.8 | |||||||
| Borrower C |
Construction | 37.6 | 36.5 | |||||||
| Borrower D |
Wholesale and retail trade | 20.0 | 1.9 | |||||||
| Borrower E |
Real estate activities | 18.3 | 3.1 | |||||||
| Borrower F |
Real estate activities | 14.8 | 4.3 | |||||||
| Borrower G |
Real estate activities | 14.8 | 4.3 | |||||||
| Borrower H |
Construction | 14.4 | 13.0 | |||||||
| Borrower I |
Real estate activities | 11.3 | 1.0 | |||||||
| Borrower J |
Real estate activities | 11.0 | 1.7 | |||||||
| Borrower K |
Wholesale and retail trade | 10.7 | 10.5 | |||||||
| Borrower L |
Accommodation and food service activities | 8.9 | 0.7 | |||||||
| Borrower M |
Manufacturing | 8.6 | 2.6 | |||||||
| Borrower N |
Construction | 7.8 | 7.8 | |||||||
| Borrower O |
Wholesale and retail trade | 6.8 | 3.8 | |||||||
| Borrower P |
Manufacturing | 6.7 | 4.4 | |||||||
| Borrower Q |
Real estate activities | 6.5 | 0.7 | |||||||
| Borrower R |
Manufacturing | 4.6 | 3.2 | |||||||
| Borrower S |
Construction | 4.5 | 0.4 | |||||||
| Borrower T |
Transportation and warehousing business | 4.4 | 0.3 | |||||||
|
|
|
|
|
|||||||
| — |
— | 530.5 | 241.0 | |||||||
|
|
|
|
|
|||||||
| 3.4. | Other Financial Information |
See Exhibits 99.1 and 99.2 attached hereto for our consolidated and separate financial statements and relevant notes, which have been prepared in accordance with K-IFRS and reviewed by our independent auditors as stated in their review reports included therein. The review reports will also be available on our website at www.kbfg.com.
Table of Contents
| 4. | Independent Public Accountants |
| 4.1. | Audit / Review Services |
| (Unit: in millions of Won) | ||||||||||||||||||||
| Auditor |
Activity |
Agreed Per Contract(1) | Actual(2) | |||||||||||||||||
| Period |
Compensation(3) | Estimated Hours |
Compensation(3) | Accrued Hours |
||||||||||||||||
| January 1 to June 30, 2024 |
Samil PricewaterhouseCoopers | Quarterly, semi-annual and annual review & audit, review of internal accounting management system (including audit of internal control over financial reporting) | 1,296 | 10,970 | 693 | 2,866 | ||||||||||||||
| 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 | ||||||||||||||
| 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 |
Samil Pricewaterhouse Coopers |
PCAOB audit of consolidated financial statements and internal control over financial reporting | May 1, 2024 to April 30, 2025 |
804 | ||||||
| January 1 to |
Samil Pricewaterhouse Coopers |
PCAOB audit of consolidated financial statements and internal control over financial reporting | May 1, 2023 to April 30, 2024 |
784 | ||||||
| January 1 to |
KPMG Samjong Accounting Corp. | PCAOB audit of consolidated financial statements and internal control over financial reporting | May 1, 2022 to April 30, 2023 |
697 | ||||||
| Note: | (1) Total compensation (excluding value-added taxes) is established at the time of the execution of the audit and review services contract. |
Table of Contents
| 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 June 30, 2024, 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.
Table of Contents
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 June 30, 2024.
| 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, Gyutaeg Oh) are accounting or financial experts. | |
| 5.3. | 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 |
9 (7) | 3,000 | — | |||||||||
| Notes: (1) | Represents the total number of applicable persons as of June 30, 2024. |
| (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 June 30, 2024) | (Unit: in millions of Won) | |||||||||||
| Total number of persons(1) |
Total payment(2)(3) | Average payment per person(4) | Notes | |||||||||
| 9 |
1,226 | 136 | — | |||||||||
| Notes: (1) | Represents the total number of applicable persons as of June 30, 2024. |
| (2) | Represents the total amount paid (rounded to the nearest million) for the six months ended June 30, 2024. |
| (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 six months ended June 30, 2024, divided by (ii) the number of applicable persons for the applicable reporting period. |
5.3.3. Compensation Breakdown
| (As of June 30, 2024) | (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 | 877 | 438 | — | ||||||||||||
| Non-executive Directors (excluding Audit Committee members) |
3 | 143 | 48 | — | ||||||||||||
| Audit Committee members |
4 | 206 | 51 | — | ||||||||||||
| Internal Auditor |
— | — | — | — | ||||||||||||
| Notes: (1) | Represents the total number of applicable persons as of June 30, 2024. |
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| (2) | Represents the total amount paid (rounded to the nearest million) for the six months ended June 30, 2024. |
| (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 six months ended June 30, 2024, divided by (ii) the number of applicable persons for the applicable reporting period. |
| 5.4. | Top 5 Highest-Paid Individuals |
| 5.4.1 | Compensation exceeding Won 500 million – Individual basis |
| (As of June 30, 2024) | (Unit: in millions of Won) | |||||
| Name |
Position |
Total Amount |
Deferred Compensation(1) | |||
| Jong Hee Yang | Chairman & CEO | 877 | - Deferred short-term performance-based payment, the amount of which corresponds to a total of 5,995 shares and deferred long-term performance-based payment, the amount of which corresponds to a total of 7,008 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. | |||
| 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 |
Calculation Criteria and Method | |||||
| Jong Hee Yang |
Earned income | Salary | 450 | - 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 200 million.) | ||||
| Bonus | 427 | - The bonus paid in 2024 consisted of Won 218 million in short-term performance-based compensation and Won 209 million in long-term performance-based compensation.
- The short-term performance-based payment included a lump sum payment of 198 million for the period prior to his appointment as the CEO in 2023 (2023.1.1-2023.11.20) and a lump sum payment of 21 million for the period after his appointment as the CEO (2023.11.21-2023.12.31).
- The short-term performance evaluation index for the period after his appointment as the CEO consisted of financial results (including ROE, total operating income, net profit from non-banking businesses, comprehensive NPL ratio, Tier1 ratio, RORWA, and C/I Ratio), as well as non-financial results (including 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 base salary.
- With respect to financial results, the Group’s net profit for 2023 was Won 4,631.9 billion, primarily due to well-managed asset quality and cost efficiency. Such results were considered, among other, to be major achievements that were reflected in the performance evaluation. | ||||||
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| Name |
Compensation Type |
Total |
Calculation Criteria and Method | |||||
|
- The short-term performance evaluation index for the period before his appointment as the CEO consisted of financial results linked to his role as a 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.
His major achievements prior to his appointment as the CEO included his roles in helping the Group’s main platform exceeding 12 million monthly active users, solidifying the Group’s market position in the retirement pension sector, and expanding the wealth management customer base. The amount of short-term incentive payment is determined within a range of 0 to 120% of the base salary according to the achievement level of each of the indices.
- The long-term performance-based compensation consisted of a lump sum payment of Won 209 million based on a performance evaluation for the period prior to his appointment as the CEO from January 1, 2023 to November 20, 2023.
- The long-term performance evaluation index consisted of relative total shareholder return, as well as the performance results linked to his roles 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 a 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. | ||||||||
| Stock options | — | - Not applicable | ||||||
| Other earned income | — | - Not applicable | ||||||
| Retirement income | — | - Not applicable | ||||||
| Other income | — | - Not applicable | ||||||
| 5.5. | Stock-based Compensation |
| 5.5.1. | Stock-Linked Cash Compensation (Phantom Stock) |
Pursuant to the Group’s director compensation regulations and executive officer management regulations, the Evaluation and Compensation Committee determines various aspects of the performance evaluation and compensation of the Group’s management, and establishes and evaluates the performance evaluation and compensation criteria for management on an annual basis through its committee resolutions. The short-term performance bonuses (annual evaluation) and long-term performance bonuses (multi-year cumulative evaluation) that were determined on the basis of such evaluation results are paid and operated in the form of cash compensation and stock compensation (performance-linked shares, restricted stock).
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A portion (40 to 60%) of the short-term bonus is paid in cash immediately, while the remaining portion (60 to 40%) is converted to restricted stocks and paid on a deferred basis. The long-term bonus is granted as performance-linked shares based on a cumulative evaluation covering two years of performance (three years for the CEO). A portion of such performance-linked shares is paid in cash in an amount corresponding to the stock value, while the remaining portion is converted to restricted stocks and paid on a deferred basis, similar to the short-term performance bonuses. The deferred portions of the short-term and long-term performance bonuses are paid in cash, reflecting the stock price (fair market value) at the time of the deferred payment.
| 5.5.2. | Changes in the Amounts of Stock-based Compensation |
| 5.5.2.1 | Long-Term Performance Compensation |
| (Unit: Number of Shares) | ||||||||||||||||
| For the six months ended June 30, 2024 |
For the year ended December 31, 2023 |
For the year ended December 31, 2022 |
For the year ended December 31, 2021 |
|||||||||||||
| Number of Recipients(1)(2) |
13 | 11 | 13 | 12 | ||||||||||||
| Number of Performance-Linked Shares Granted(2)(3) |
96,687 | 97,995 | 58,317 | 73,192 | ||||||||||||
| Number of Performance-Linked Shares Paid During the Period (a+b)(4) |
69,947 | 136,045 | 36,471 | 44,373 | ||||||||||||
| a. Number of Shares for Stock-Linked Cash Compensation |
33,431 | 63,934 | 18,234 | 22,700 | ||||||||||||
| b. Number of Shares Converted to Restricted Stocks to be Paid on a Deferred Basis |
36,516 | 72,111 | 18,237 | 21,673 | ||||||||||||
| Evaluation Adjustment |
(4,146 | ) | (839 | ) | (1,003 | ) | (1,180 | ) | ||||||||
| Cumulative Number of Performance-Linked Shares Paid (Sum of Stock-Linked Cash Compensation and Restricted Stock Conversion)(5) |
242,463 | 216,889 | 169,382 | 149,024 | ||||||||||||
| Number of Unpaid Performance-Linked Shares(3)(6) |
171,067 | 148,473 | 187,362 | 166,519 | ||||||||||||
| Notes: (1) | Based on the beneficiaries reported to the tax office pursuant to Article 20 of the Income Tax Act of Korea. |
| (2) | Based on the number of individuals who entered into stock-based compensation agreements each year and the number of shares scheduled to be granted according to such agreements. |
| (3) | Adjusted based on the period of employment during the performance-linked share grant period. |
| (4) | Represents the final number of shares determined after adjustments based on evaluation results. According to the Act on the Corporate Governance of Financial Companies, a portion (40 to 60%) is paid as stock-linked cash compensation applying the stock price (fair market value) at the end of the evaluation period, while the remainder (60 to 40%) is converted to restricted stocks and paid on a deferred basis for one year from the end of the evaluation period or one year after retirement, and then paid over three years applying the stock price (fair market value) at the time of each deferred payment. |
| (5) | Represents the cumulative number of shares paid up to the record date of disclosure during the reporting period. |
| (6) | Represents the number of shares granted at the end of the year minus the actual number of shares paid. |
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| 5.5.2.2. | Restricted Stock |
| (Unit: Number of Shares) | ||||||||||||||||
| For the six months ended June 30, 2024 |
For the year ended December 31, 2023 |
For the year ended December 31, 2022 |
For the year ended December 31, 2021 |
|||||||||||||
| Number of Payment Recipients |
26 | 23 | 15 | 18 | ||||||||||||
| Number of Shares Confirmed for Deferral(1) |
64,997 | 113,124 | 46,557 | 45,331 | ||||||||||||
| Number of Shares Paid(1) |
58,608 | 66,512 | 58,434 | 63,856 | ||||||||||||
| Cumulative Number of Shares Paid(3) |
183,554 | 188,802 | 187,020 | 187,553 | ||||||||||||
| Number of Unpaid Shares(1) |
177,023 | 170,634 | 124,022 | 135,899 | ||||||||||||
| Notes: (1) | Based on the number of restricted stocks confirmed based on the period of employment and the resolutions of the Evaluation and Compensation Committee. |
| (2) | Restricted stock is paid in cash reflecting the stock price (fair market value) at the time of each deferred payment, after one year from the end of the evaluation period or one year after retirement, over three years. |
| (3) | Represents the cumulative number of shares paid up to the record date of disclosure during the reporting period. |
| 5.6. | Affiliated Companies |
| 5.6.1. | 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 June 30, 2024 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 June 30, 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 June 30, 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 | 5,914 | November 20, 2026 | ||||||||||||
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| 6.2. | Non-standing Directors |
As of June 30, 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 June 30, 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 21, 2025 | ||||||||||||
| 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 2024, which is expected be held in March 2025. |
| 6.3. | Non-executive Directors |
As of June 30, 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 June 30, 2024 were as follows.
| Name |
Date of Birth | Position | Common Shares Owned | End of Term | ||||||
| Seon-joo Kwon |
November 1956 | Non-executive Director | — | March 21, 2025 | ||||||
| Whajoon Cho |
February 1957 | Non-executive Director | — | March 23, 2025 | ||||||
| Gyutaeg Oh |
February 1959 | Non-executive Director | — | March 21, 2025 | ||||||
| Jungsung Yeo |
April 1960 | Non-executive Director | — | March 23, 2025 | ||||||
| Jaehong Choi |
August 1962 | Non-executive Director | — | March 21, 2025 | ||||||
| Myong-Hwal Lee |
May 1964 | Non-executive Director | — | March 21, 2026 | ||||||
| Sung-Yong Kim |
March 1966 | Non-executive Director | — | March 23, 2025 | ||||||
| 6.4. | Senior Management |
Members of our senior management as of June 30, 2024 are as follows.
| Name |
Date of Birth | Position |
Common Shares Owned(1) |
End of Term | ||||||||
| Seung Jong Lee |
January 1966 | Senior Executive Vice President and Chief Strategy Officer |
1,214 | December 31, 2024 | ||||||||
| Jae Kwan Kim |
July 1968 | Senior Executive Vice President and Chief Finance Officer |
4,827 | 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, Consumer Protection Officer and Chief Compliance Officer |
1,744 | December 31, 2025 | ||||||||
| Bong Joong Kwon |
November 1969 | Senior Managing Director and Head of the IR Division |
2,123 | December 31, 2024 | ||||||||
| Hyo Ik Park |
January 1970 | Senior Managing Director and Chief Business Officer of Insurance |
796 | December 31, 2024 | ||||||||
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| Name |
Date of Birth | Position |
Common Shares Owned(1) |
End of Term | ||||||||
| Shin Dong Jeung |
January 1966 | Senior Managing Director and Head of KB Research |
389 | December 31, 2024 | ||||||||
| Dae Hyun Cha |
January 1966 | Senior Managing Director and Chief Officer of Audit Department |
1,285 | December 31, 2024 | ||||||||
| Keoung Nam Kim |
August 1967 | Managing Director and Head of the ESG Division |
1,253 | December 31, 2024 | ||||||||
| Sang Rock Na |
August 1972 | Managing Director and General Manager of the Financial Planning Department |
759 | December 31, 2025 | ||||||||
| Hyo Sung Jeon |
March 1971 | Managing Director and Chief Human Resources Officer |
1,286 | 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 |
1,706 | 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 |
669 | December 31, 2024 | ||||||||
| Sang Won Oh |
December 1967 | Head of the IT Division |
691 | December 31, 2024 | ||||||||
| Youngsei Park |
January 1968 | Head of Consumer Protection Division |
526 | December 31, 2024 | ||||||||
| Yoon Ha |
March 1971 | Head of the Customer Experience Design 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 |
297 | December 31, 2024 | ||||||||
| Chan Yong Park |
September 1965 | Head of the Planning & Coordination Department |
1,154 | December 31, 2024 | ||||||||
| Note: (1) | The numbers of common shares owned are as of June 30, 2024 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 June 30, 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 | |||
| Youngsei Park |
Kookmin Bank | Senior Executive Vice President, Consumer Protection Group | January 2024 | |||
| Yoon Ha |
Kookmin Bank | Head of the Customer Experience Design Center | January 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 | |||
| Seung Jong Lee |
KB Securities | Non-standing Director | March 2024 | |||
| KB Life Insurance | Non-standing Director | March 2024 | ||||
| Jae Kwan Kim |
KB Insurance | Non-standing Director | March 2024 | |||
| KB Kookmin Card | Non-standing Director | March 2024 | ||||
| Sang Rock Na |
KB Capital | Non-standing Director | March 2021 | |||
| KB Investment | Non-standing Director | August 2020 |
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| 6.5. | Employees |
The following table shows information regarding our employees and compensation paid to them as of June 30, 2024.
| (Unit: in millions of Won) | ||||||||||||
| Number of Employees(1) |
Average Tenure of Employees(2) |
Total Amount of Compensation(3) |
Average Compensation per Person(4) |
|||||||||
| 141 |
|
3 years and 7 months (16 years and 4 months |
) |
11,251 | 80 | |||||||
| Notes: | (1) Includes all employees as of June 30, 2024, 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, 2024 to June 30, 2024. |
| (4) | Based on the sum of the average monthly compensation of each month from January 1, 2024 to June 30, 2024, 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 June 30, 2024.
| (Unit: in millions of Won) | ||||||||
| Number of Executive Officers(A)(1) |
Total Amount of Annual Salaries(B) |
Average Annual Salary per Person(B/A) |
||||||
| 14 |
2,182 | 163 | ||||||
| Note: | (1) Excludes 9 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 June 30, 2024, unless specified otherwise.
| (Unit: shares, %) | ||||||||
| Name |
Number of Shares of Common Stock | Percentage of Total Issued Shares(1) | ||||||
| Korean National Pension Service |
33,326,122 | 8.26 | ||||||
| JP Morgan Chase Bank, N.A.(2) |
22,536,727 | 5.59 | ||||||
| BlackRock Fund Advisors(3) |
25,050,939 | 6.02 | ||||||
| Notes: | (1) Based on 403,511,072 shares of our common stock issued as of June 30, 2024. |
| (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 based on the disclosure made by BlackRock Fund Advisors in a statement of acquisition filing on March 10, 2021. |
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| 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 | |||||||||
| Korean National Pension Service |
February 29, 2024 | 33,704,092 | 8.35 | |||||||||
| Korean National Pension Service |
March 31, 2024 | 33,200,471 | 8.23 | |||||||||
| Korean National Pension Service |
June 30, 2024 | 33,326,122 | 8.26 | |||||||||
| 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 June 30, 2024) |
| (Unit: shares) | ||||
| Company Name |
Number of Shares of Common Stock Owned |
|||
| KB Financial Group Inc. |
63,466 | |||
| Kookmin Bank |
6,337,275 | |||
| KB Securities Co., Ltd. |
67,323 | |||
| KB Insurance Co., Ltd. |
777,497 | |||
| KB Kookmin Card Co., Ltd. |
559,147 | |||
| KB Life Insurance Co., Ltd. |
21,017 | |||
| KB Asset Management Co., Ltd. |
16,408 | |||
| KB Capital Co., Ltd. |
124,398 | |||
| KB Real Estate Trust Co., Ltd. |
24,979 | |||
| KB Savings Bank Co., Ltd. |
14,519 | |||
| KB Investment Co., Ltd. |
3,444 | |||
| KB Data Systems Co., Ltd. |
55,983 | |||
| KB Credit Information Co., Ltd. |
13,207 | |||
| Others(1) |
21,040 | |||
|
|
|
|||
| Total |
8,099,703 | |||
|
|
|
|||
| Note: | (1) Shares of common stock attributable to an account owned by the employee stock ownership association of KB Financial Group. |
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| 7.4. | Investments in Affiliated Companies |
| (As of June 30, 2024) | (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 | 552,016,868 | 1,505,858 | |||||||||||||||
| KB Securities Co., Ltd. |
298,620,424 | 100 | 3,342,391 | 62,495,222 | 376,131 | |||||||||||||||
| KB Insurance Co., Ltd. |
66,500,000 | 100 | 2,375,430 | 38,013,049 | 571,952 | |||||||||||||||
| KB Kookmin Card Co., Ltd. |
92,000,000 | 100 | 1,953,175 | 29,688,528 | 255,715 | |||||||||||||||
| KB Life Insurance Co., Ltd. (Formerly, Prudential Life Insurance) |
16,201,518 | 100 | 2,795,368 | 32,683,776 | 152,081 | |||||||||||||||
| KB Asset Management Co., Ltd. |
7,667,550 | 100 | 96,312 | 350,208 | 33,811 | |||||||||||||||
| KB Capital Co., Ltd. |
32,175,147 | 100 | 873,811 | 17,433,996 | 137,173 | |||||||||||||||
| KB Real Estate Trust Co., Ltd. |
16,000,000 | 100 | 121,553 | 1,148,277 | (105,786 | ) | ||||||||||||||
| KB Savings Bank Co., Ltd. |
8,001,912 | 100 | 176,813 | 2,570,986 | 3,178 | |||||||||||||||
| KB Investment Co., Ltd. |
22,525,328 | 100 | 154,910 | 1,533,502 | 4,235 | |||||||||||||||
| KB Data Systems Co., Ltd. |
800,000 | 100 | 6,334 | 61,606 | 832 | |||||||||||||||
|
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| Total |
— | — | 26,717,817 | — | — | |||||||||||||||
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| 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 Amount |
Issue Date |
Interest Rate | Maturity Date |
Use of Proceeds | |||||||||
| 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 Amount |
Issue Date |
Interest Rate | Maturity Date |
Use of Proceeds | |||||||||
| 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 | ||||||||
Table of Contents
| (Unit: in billions of Won) | ||||||||||||||||
| Issuer |
Relationship |
Type |
Issue Amount |
Issue Date |
Interest Rate | Maturity Date |
Use of Proceeds | |||||||||
| 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 Amount |
Issue Date |
Interest Rate | Maturity Date |
Use of Proceeds | |||||||||
| 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 Amount |
Issue Date |
Interest Rate | Maturity Date |
Use of Proceeds | |||||||||
| 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 Amount |
Issue Date |
Interest Rate | Maturity Date |
Use of Proceeds | |||||||||
| 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 Amount |
Issue Date |
Interest Rate | Maturity Date |
Use of Proceeds | |||||||||
| 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 Amount |
Issue Date |
Interest Rate | Maturity Date |
Use of Proceeds | |||||||||
| 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. |
Table of Contents
| (Unit: in billions of Won) | ||||||||||||||||
| Issuer |
Relationship |
Type |
Issue Amount |
Issue Date |
Interest Rate | Maturity Date |
Use of Proceeds | |||||||||
| 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 Rate | 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 Rate | 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 capital securities issued by KB Real Estate Trust Co., Ltd. |
| (Unit: in billions of Won) | ||||||||||||||||
| Issuer |
Relationship |
Type |
Issue Amount |
Issue Date |
Interest Rate | Maturity Date |
Use of Proceeds | |||||||||
| KB Real Estate Trust Co., Ltd. |
Subsidiary | No. 1 Private Placement of Capital Securities in Won | 150 | June 27, 2024 | 7.800 | % | June 27, 2054 (may be extended) |
Working capital | ||||||||
| 7.5.4. | Purchase of subordinated bonds issued by KB Savings Bank Co., Ltd. |
| (Unit: in billions of Won) | ||||||||||||||||
| Issuer |
Relationship |
Type |
Issue Amount |
Issue Date |
Interest Rate | 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 | ||||||||
Table of Contents
| 7.5.5. | Prepayments and Loans to Subsidiaries |
| (Unit: in billions of Won) | ||||||||||||||||
| Name |
Relationship |
Account |
Loan Amount |
Current Balance |
Credit Offering Date | 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 Date | 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 Date | Interest Rate |
Maturity Date | |||||||||
| KB Investment Co., Ltd. |
Subsidiary | Loans(1) | 70 | 70 | March 8, 2019 | 2.694% | March 7, 2025 | |||||||||
| Notes: | (1) | Unsecured credit loans. |
| (Unit: in billions of Won) | ||||||||||||||||
| Name |
Relationship |
Account |
Loan Amount |
Current Balance |
Credit Offering Date | Interest Rate |
Maturity Date | |||||||||
| KB Investment Co., Ltd. |
Subsidiary | Loans(1) | 30 | 30 | March 9, 2020 | 2.694% | March 7, 2025 | |||||||||
| Notes: | (1) | Unsecured credit loans. |
| (Unit: in billions of Won) | ||||||||||||||||
| Name |
Relationship |
Account |
Loan Amount |
Current Balance |
Credit Offering Date | 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 Date | 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 Date | 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. |
Table of Contents
| (Unit: in billions of Won) | ||||||||||||||||
| Name |
Relationship |
Account |
Loan Amount |
Current Balance |
Credit Offering Date | 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 Date | 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 Date | 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. |
| (Unit: in billions of Won) | ||||||||||||||||
| Name |
Relationship |
Account |
Loan Amount |
Current Balance |
Credit Offering Date | Interest Rate |
Maturity Date | |||||||||
| KB Real Estate Trust Co., Ltd. |
Subsidiary | Loans(1) | 35 | 35 | February 28, 2024 | 4.081% | February 18, 2025 | |||||||||
| Note: | (1) | Unsecured credit loans. |
| (Unit: in billions of Won) | ||||||||||||||||
| Name |
Relationship |
Account |
Loan Amount |
Current Balance |
Credit Offering Date | Interest Rate |
Maturity Date | |||||||||
| KB Real Estate Trust Co., Ltd. |
Subsidiary | Loans(1) | 70 | 70 | April 29, 2024 | 3.970% | April 22, 2025 | |||||||||
| Note: | (1) | Unsecured credit loans. |
Table of Contents
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: August 14, 2024 | By: | /s/ Jae Kwan Kim | ||||
| (Signature) | ||||||
| Name: Jae Kwan Kim | ||||||
| Title: | Senior Executive Vice President and Chief Finance Officer | |||||