6-K
KB Financial Group Inc. (KB)
6-K
2025-03-14
For: 2025-03-14
View Original
Added on
April 09, 2026
Table of Contents
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 6-K
REPORT OFFOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR15d-16 UNDER
THE SECURITIES EXCHANGE ACT OF 1934
For the month of March 2025
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 ☐
Table of Contents
TABLE OF CONTENTS
| 1. | Introduction to the Company |
|---|---|
| 1.1. | Business Purpose |
| 1.2. | History |
| 1.3. | Overview of the Business Group |
| 1.4. | Capital Structure |
| 1.5. | Dividends |
| 1.6. | Amendments to the Articles of Incorporation |
| 2. | Business |
| 2.1. | Results of Operations |
| 2.2. | Sources and Uses of Funds |
| 2.3. | Other Information to Consider in Making an Investment Decision |
| 3. | Financial Information |
| 3.1. | Consolidated Financial Information |
| 3.2. | Separate Financial Information |
| 3.3. | Other Selected Financial Data |
| 3.4. | Other Financial Information |
| 4. | Independent Public Accountants |
| 4.1. | Audit / Review Services |
| 4.2. | Public Company Accounting Oversight Board (“PCAOB”) Audit Services |
| 4.3. | Change in Auditor |
| 5. | Corporate Governance and Affiliated Companies |
| 5.1. | Board of Directors & Committees under the Board |
| 5.2. | Audit Committee |
| 5.3. | Compensation to Directors |
| 5.4. | Top 5 Highest-Paid Individuals |
| 5.5. | Stock-based Compensation |
| 5.6. | Affiliated Companies |
| 6. | Directors, Senior Management and Employees |
| 6.1. | Executive Directors |
| 6.2. | Non-standing Directors |
| 6.3. | Non-executive<br>Directors |
| 6.4. | Senior Management |
| 6.5. | Employees |
| 7. | Major Shareholders and Related Party Transactions |
| 7.1. | Major Shareholders |
| 7.2. | Changes in the Largest Shareholder |
| 7.3. | Employee Stock Ownership Association |
| 7.4. | Investments in Affiliated Companies |
| 7.5. | Related Party Transactions |
| 8. | Internal Controls |
| 8.1. | Management’s Assessment of the Effectiveness of the Internal Accounting Management<br> System |
| 8.2. | Audit Committee’s Assessment of the Effectiveness of the Internal Accounting<br> Management System |
| 8.3. | External Auditor’s Audit Opinion (Review Report) on the Effectiveness of<br> the Internal Accounting Management System |
Table of Contents
Summary of Business Report for Fiscal Year 2024
On March 14, 2025, KB Financial Group Inc. (“KB Financial Group” or the “Group”) filed its business report for the fiscal year ended December 31, 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” or the “Company” are to KB Financial Group and, unless the context requires otherwise, its subsidiaries. In addition, all references to “Won” or “KRW” in this document are to the currency of the Republic of Korea.
Table of Contents
| 1. | Introduction to the Company |
|---|---|
| 1.1. | Business Purpose |
| --- | --- |
KB Financial Group is a financial holding company that was established in September 2008. Its main business purpose is to hold shares in companies that are engaged in financial or related services, as well as govern and manage such companies. Its consolidated subsidiaries are primarily engaged in the banking business, as well as the credit card business, the financial investment business, the insurance business and other related businesses.
| 1.2. | History |
|---|---|
| • | September 26, 2008 |
| --- | --- |
Obtained final approval from the Financial Services Commission to establish a financial holding company
| • | September 29, 2008 |
|---|
Establishment of the Company through a comprehensive stock transfer and listing on the New York Stock Exchange
| • | October 10, 2008 |
|---|
Listing on the Korea Exchange
| • | October 20, 2008 |
|---|
The largest shareholder of the Company changed from the Korean National Pension Service to ING Bank N.V.
| • | October 31, 2008 |
|---|
The largest shareholder of the Company changed from ING Bank N.V. to the Korean National Pension Service
| • | May 4, 2009 |
|---|
Added Kookmin Bank Cambodia PLC. as a second-tier subsidiary
| • | June 22, 2009 |
|---|
Added KB Life Insurance Co., Ltd. (“KB Life Insurance”), formerly a second-tier subsidiary, as a first-tier subsidiary
| • | July 1, 2009 |
|---|
Changed the name of KB Venture Capital Co., Ltd. to KB Investment Co., Ltd. (“KB Investment”)
| • | January 22, 2010 |
|---|
The largest shareholder of the Company changed from the Korean National Pension Service to ING Bank N.V.
| • | March 2, 2011 |
|---|
Added KB Kookmin Card Co., Ltd. (“KB Kookmin Card”) as a first-tier subsidiary following the spin-off of Kookmin Bank’s credit card business unit.
| • | 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
Table of Contents
| • | October 10, 2012 |
|---|
Added KB 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 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
| • | 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
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| • | December 22, 2017 |
|---|
Disposed of Hyundai Asset Management, Co., Ltd., a second-tier subsidiary
| • | 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
| • | 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
| • | 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)
| • | 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 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
| • | October 8, 2021 |
|---|
Added KB Healthcare Co., Ltd. as a second-tier subsidiary
| • | February 14, 2022 |
|---|
Added PT KB Valbury Sekuritas as a second-tier subsidiary
| • | May 10, 2022 |
|---|
Added KB Life Partners Co., Ltd. as a second-tier subsidiary
| • | December 26, 2022 |
|---|
Added i-Finance Leasing Plc. as a second-tier subsidiary
| • | December 26, 2022 |
|---|
Renamed Prudential Life Insurance Company of Korea, Ltd. to KB Life Insurance Co., Ltd.
| • | January 1, 2023 |
|---|
Merged KB Life Insurance with and into KB Life Insurance Co., Ltd. (former Prudential Life Insurance Company of Korea, Ltd.)
| • | June 30, 2023 |
|---|
Withdrew KB Credit Information Co., Ltd. as a first-tier subsidiary and added it as a second-tier subsidiary as it became a subsidiary of KB Kookmin Card Co., Ltd. (a first-tier subsidiary)
| • | August 4, 2023 |
|---|
Merged KB Bank Cambodia Plc. with and into PRASAC Microfinance Institution Plc.; renamed the merged entity KB PRASAC BANK PLC. and converted it into a commercial bank
Table of Contents
| • | 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.
| • | December 13, 2023 |
|---|
Added Teamwink Inc. as a second-tier subsidiary (renamed to KBFintech Co., Ltd. on October 14, 2024)
| • | June 3, 2024 |
|---|
Added KB Fund Partners as a second-tier subsidiary following the split-off of KB Kookmin Bank’s fund services business unit
Table of Contents
| 1.3. | Overview of the Business Group | ||
|---|---|---|---|
| (As of December 31, 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^(1)^ | PT Bank KB Bukopin Tbk | Kookmin Bank | Listed<br><br><br>(Overseas) |
| Kookmin Bank (China) Limited | Kookmin Bank | Not listed<br><br><br>(Overseas) | |
| KB Microfinance Myanmar Co., Ltd. | Kookmin Bank | Not listed<br><br><br>(Overseas) | |
| KB BANK MYANMAR LTD | Kookmin Bank | Not listed<br><br><br>(Overseas) | |
| KB PRASAC BANK | Kookmin Bank | Not listed<br><br><br>(Overseas) | |
| KB Fund Partners^(2)^ | Kookmin Bank | Not listed | |
| KBFG Securities America Inc. | KB Securities | Not listed<br><br><br>(Overseas) | |
| KB Securities Hong Kong Ltd. | KB Securities | Not listed<br><br><br>(Overseas) | |
| KB SECURITIES VIETNAM JOINT STOCK COMPANY | KB Securities | Not listed<br><br><br>(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^(3)^ | KB Securities | Not listed | |
| KB FINA JOINT STOCK COMPANY | KB Securities | Not listed<br><br><br>(Overseas) | |
| PT KB Valbury Sekuritas | KB Securities | Not listed<br><br><br>(Overseas) | |
| KB-LB Middle Market Enterprises Innovation Private Equity Fund^(4)^ | KB Securities | Not listed | |
| KB-IMM New Star Real Estate Private Fund I^(5)^ | KB Securities | Not listed | |
| 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<br><br><br>(Overseas) | |
| KBFG Insurance (China) Co., Ltd | KB Insurance | Not listed<br><br><br>(Overseas) | |
| PT. KB Insurance Indonesia | KB Insurance | Not listed<br><br><br>(Overseas) |
Table of Contents
| 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<br><br><br>(Overseas) | |
| PT KB Finansia Multi Finance | KB Kookmin Card | Not listed<br><br><br>(Overseas) | |
| KB J Capital Co., Ltd | KB Kookmin Card | Not listed<br><br><br>(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<br><br><br>(Overseas) | |
| KBAM Shanghai Advisory Services Co., Ltd. | KB Asset Management | Not listed<br><br><br>(Overseas) | |
| PT KB Valbury Asset Management^(6)^ | KB Asset Management | Not listed<br><br><br>(Overseas) | |
| KB Co-Investment 1st Private Equity <br>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<br><br><br>(Overseas) | |
| PT. Sunindo Kookmin Best Finance | KB Capital | Not listed<br><br><br>(Overseas) | |
| KBFintech Inc.^(7)^ | 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<br><br><br>(Overseas) | |
| 3rd Tier Subsidiaries | PT Bukopin Finance | PT Bank KB Bukopin Tbk. | Not listed<br><br><br>(Overseas) |
| PT Bank Syariah Bukopin | PT Bank KB Bukopin Tbk. | Not listed<br><br><br>(Overseas) | |
| Mangrove Master Fund | KB Asset Management Singapore Pte. Ltd. | Not listed<br><br><br>(Overseas) | |
| Mangrove Feeder Fund | KB Asset Management Singapore Pte. Ltd. | Not listed<br><br><br>(Overseas) | |
| Notes: (1) | i-Finance Leasing Plc was removed from the list of subsidiaries due to<br>its merger with KB Daehan Specialized Bank Plc on December 19, 2024. | ||
| --- | --- | ||
| (2) | Established on June 3, 2024 as a subsidiary of Kookmin Bank through a split off of Kookmin Bank’s<br>fund service business. | ||
| --- | --- | ||
| (3) | Established on March 4, 2024 as a subsidiary of KB Securities. | ||
| --- | --- | ||
| (4) | Established on July 9, 2024 as a subsidiary of KB Securities. | ||
| --- | --- | ||
| (5) | Established on November 13, 2024, and became a subsidiary of KB Securities on December 3, 2024.<br> | ||
| --- | --- | ||
| (6) | KB Asset Management acquired PT KB Valbury Capital Management from KB Securities on February 1, 2024, and<br>subsequently incorporated it as a subsidiary. | ||
| --- | --- | ||
| (7) | Renamed to KBFintech from Teamwink Inc.on October 14, 2024. | ||
| --- | --- |
Table of Contents
| 1.4. | Capital Structure |
|---|---|
| 1.4.1. | Common Shares |
| --- | --- |
Changes in Capital
| (As of December 31, 2024) | (Unit: Won, shares) | |||||||
|---|---|---|---|---|---|---|---|---|
| Date | Type | Number of Shares<br>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)^ | |||
| August 14, 2024 | Common Stock | 9,982,649 | 5,000 | — | Share Cancellation^(1)^ | |||
| Note: (1) | The cancelled shares constituted treasury shares acquired pursuant to a resolution of the board of directors of<br>the Company within the limits of profit available for dividend payment, and as such, there was no change in paid-in capital. | |||||||
| --- | --- |
Number of Shares
| (As of December 31, 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<br>the Articles of<br>Incorporation | |||||
| Total Shares Issued (A) | 418,111,537 | — | 418,111,537 | — | |||||
| Decrease in Number of Shares (B) | 24,583,114 | — | 24,583,114 | — | |||||
| 1. Capital Reduction | — | — | — | — | |||||
| 2. Cancellation | 24,583,114 | — | 24,583,114 | Cancellation of<br>Treasury Shares | |||||
| 3. Redemption | — | — | — | — | |||||
| 4. Other | — | — | — | — | |||||
| Shares Issued as of December 31, 2024<br>(C=A-B) | 393,528,423 | — | 393,528,423 | — | |||||
| Treasury Shares^^(D) | 19,927,704 | — | 19,927,704 | — | |||||
| Shares Outstanding (C-D) | 373,600,719 | — | 373,600,719 | — | |||||
| Treasury Share Holding Ratio | 5.06 | % | 5.06 | % | |||||
| Notes: (1) | On July 25, 2023, the board of directors of the Company resolved to acquire and cancel certain of the<br>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<br>July 31, 2024, and accordingly acquired a total of 5,584,514 treasury shares. The Company designated August 14, 2024, as the cancellation date and canceled all of the acquired treasury shares on such date. The canceled shares were within<br>the limits of profit available for dividend payment, and as such, there was no change in paid-in capital, while the total number of issued shares decreased. | ||||||||
| --- | --- | ||||||||
| (2) | On February 7, 2024, the board of directors of the Company resolved to acquire and cancel certain of the<br>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<br>August 7, 2024, and accordingly acquired a total of 4,398,135 treasury shares. The Company designated August 14, 2024, as the cancellation date and canceled all of the acquired treasury shares on such date. The canceled shares were within<br>the limits of profit available for dividend payment, and as such, there was no change in paid-in capital, while the total number of issued shares decreased. | ||||||||
| --- | --- |
Table of Contents
| (3) | On July 24, 2024, the board of directors of the Company resolved to acquire and cancel certain of the<br>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 between August 26, 2024, and<br>March 4, 2025, and has completed such acquisition, acquiring a total of 4,575,874 treasury shares. The Company plans to cancel all of the acquired treasury shares. |
|---|---|
| (4) | On October 23, 2024, the board of directors of the Company resolved to acquire and cancel certain of the<br>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 100 billion worth of treasury shares between November 1, 2024, and<br>April 30, 2025, and has completed such acquisition, acquiring a total of 1,089,097 treasury shares. The Company plans to cancel all of the acquired treasury shares. |
| --- | --- |
1.4.2. Voting Rights
| (As of December 31, 2024) | (Unit: shares) | |||
|---|---|---|---|---|
| Items | Number of Shares | Notes | ||
| Total number of issued shares | Common shares | 393,528,423 | — | |
| Preferred shares | — | — | ||
| Shares without voting rights | Common shares | 19,927,704 | Treasury<br>shares | |
| Preferred shares | — | — | ||
| Shares for which voting rights cannot be exercised pursuant to the Articles of<br>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 | 373,600,719 | — | |
| Preferred shares | — | — | ||
| Notes: (1) | On July 25, 2023, the board of directors of the Company resolved to acquire and cancel certain of the<br>Company’s treasury shares. Pursuant to such resolution, the Company commenced the acquisition of treasury shares on August 1, 2023, and completed such acquisition on December 5, 2023, acquiring a total of 5,584,514 treasury shares.<br>The Company completed the cancellation of the acquired treasury shares on August 14, 2024. For more information, please refer to the Company’s report on Form 6-K furnished to the Securities and<br>Exchange Commission on July 31, 2024. | |||
| --- | --- | |||
| (2) | On February 7, 2024, the board of directors of the Company resolved to acquire and cancel certain of the<br>Company’s treasury shares. Pursuant to such resolution, the Company commenced the acquisition of treasury shares on February 8, 2024, and completed such acquisition on May 31, 2024, acquiring a total of 4,398,135 treasury shares. The<br>Company completed the cancellation of the acquired treasury shares on August 14, 2024. For more information, please refer to the Company’s report on Form 6-K furnished to the Securities and Exchange<br>Commission on August 7, 2024. | |||
| --- | --- | |||
| (3) | On July 23, 2024, the board of directors of the Company resolved to acquire and cancel certain of the<br>Company’s treasury shares. Pursuant to such resolution, the Company commenced the acquisition of treasury shares on August 27, 2024, and completed such acquisition on November 5, 2024, acquiring a total of 4,575,874 treasury shares.<br>The cancellation process is expected to proceed upon the termination of the trust agreement on March 4, 2025. For more information, please refer to the Company’s report on Form 6-K furnished to the<br>Securities and Exchange Commission on March 4, 2025. | |||
| --- | --- | |||
| (4) | On October 24, 2024, the board of directors of the Company resolved to acquire and cancel certain of the<br>Company’s treasury shares. Pursuant to such resolution, the Company commenced the acquisition of treasury shares on November 29, 2024, and completed such acquisition on December 17, 2024, acquiring a total of 1,089,097 treasury<br>shares. The trust agreement is scheduled to terminate on April 30, 2025, after which the cancellation process will begin. | |||
| --- | --- | |||
| (4) | On February 5, 2025, the board of directors of the Company resolved to acquire and cancel certain of the<br>Company’s treasury shares. Pursuant to such resolution, the Company commenced the acquisition of treasury shares on February 6, 2025, and is currently in the process of acquiring such shares. The cancellation process is expected to begin<br>upon completion of the acquisition. | |||
| --- | --- |
Table of Contents
| 1.5. | Dividends |
|---|
On October 24, 2024, KB Financial Group disclosed a detailed plan to enhance corporate value titled “KB Financial Group’s Sustainable Value-up Plan,” which includes information on shareholder returns and dividends. The key details of the plan are as outlined below (the full version of the plan can be accessed on KB Financial Group’s website at www.kbfg.com).
The Company’s goal is to maintain a target ROE of 10% or above, as it strives to improve profitability by enhancing its RoRWA, thereby strengthening its intrinsic corporate value.
The Company also seeks to maintain a target CET1 ratio of 13% or above. It aims to carefully manage its RWA growth rate by taking capital efficiency and profitability into consideration with the goal of maintaining a CET1 ratio in the range of mid-13% throughout the year.
The Company plans to execute its shareholder return policy in two phases. In the first phase, it will aim to utilize the capital in such amount that is equivalent to the amount exceeding 13% of its CET1 ratio as of the end of the previous year for the payment of shareholder returns in the following year. These returns will be supported through quarterly cash dividends (equitably distributed on a total annual basis) and through share buybacks and cancellations. In the second phase, the Company will aim to utilize the capital in such amount that is equivalent to the amount exceeding 13.5% of its CET1 ratio in the second half of the year to pay for additional shareholder returns. These returns, which will be made based on profits accumulated throughout the year, will be executed through share buybacks and cancellations.
These goals and expectations are subject to adjustments based on economic uncertainties, regulatory considerations, capital ratio projections, and the Company’s strategic objectives, including potential inorganic growth opportunities.
According to the Company’s Articles of Incorporation, the amount of its annual dividends are determined through a meeting of shareholders, while the amount of its quarterly dividends are determined through a resolution of the Board of Directors. While the Articles of Incorporation allows the record date for annual dividends to be set after the amount of such dividends has been determined, it currently does not allow the record dates for quarterly dividends to be set after the amounts of such dividends have been determined. The Company plans to amend its Articles of Incorporation to allow the record dates for quarterly dividends to be set after the amounts of such dividends have been determined, in order to increase the predictability of dividends to investors.
1.5.1. Dividend Confirmation and Record Date Schedule
| Items | Fiscal<br><br><br>Year-End | Dividend<br>Payment<br>Status | Dividend<br>Amount<br>Confirmation<br>Date | Record Date | Remarks |
|---|---|---|---|---|---|
| Annual Dividend | December 2022 | Yes | February 7, 2023 | December 31, 2022 | Separate from quarterly dividends |
| December 2023 | Yes | February 7, 2024 | February 29, 2024 | Separate from quarterly dividends | |
| December 2024 | Yes | February 5, 2025 | February 28, 2025 | Quarterly cash dividends to be distributed in equal amounts based on the total dividend amount | |
| Notes: | The dividend amount confirmation dates refer to the disclosure dates of such dividend amounts following<br>resolutions of the Board of Directors. The 2024 annual dividend is subject to change based on the approval process at the Annual General Meeting of Shareholders. | ||||
| --- | --- |
Table of Contents
1.5.2. Key Dividend Indicators
| (Unit: in millions of Won, except per share amounts and percentages) | |||||||
|---|---|---|---|---|---|---|---|
| Items | January 1, 2024 to<br>December 31, 2024^(1)^ | January 1, 2023 to<br>December 31, 2023^(2)^ | January 1, 2022 to<br>December 31, 2022^(3)^ | ||||
| Par value per share (Won) | 5,000 | 5,000 | 5,000 | ||||
| (Consolidated) Net income | 5,078,221 | 4,631,932 | 4,394,830 | ||||
| (Consolidated) Earnings per share (Won) | 13,407 | 11,580 | 10,955 | ||||
| Total cash dividends | 1,198,257 | 1,173,937 | 1,149,421 | ||||
| Total stock dividends | — | — | — | ||||
| (Consolidated) Cash dividend payout ratio (%) | 23.6 | 25.3 | 26.0 | ||||
| Cash dividend yield (%) | Common shares | 3.5 | 4.9 | 5.8 | |||
| — | — | — | — | ||||
| Stock dividend yield (%) | Common shares | — | — | — | |||
| — | — | — | — | ||||
| Cash dividend per share (Won) | Common shares | 3,174 | 3,060 | 2,950 | |||
| — | — | — | |||||
| Stock dividend per share | Common shares | — | — | ||||
| — | — | — | |||||
| Notes: | (1) | Includes a quarterly dividend amount of Won 300,087 million (Won 784 per common share) in the first quarter of fiscal year 2024, a<br>quarterly dividend amount of Won 299,999 million (Won 791 per common share) in the second quarter of fiscal year 2024, and a quarterly dividend amount of Won 299,886 million (Won 795 per common share) in the third quarter of fiscal year<br>2024, and an expected annual dividend amount of Won 298,285 million (Won 804 per common share). | |||||
| --- | --- | --- | |||||
| (2) | Includes a quarterly dividend amount of Won 195,967 million (Won 510 per common share) in the first<br>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<br>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<br>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<br>third quarter of fiscal year 2022, and an annual dividend amount of Won 564,970 million (Won 1,450 per common share). | ||||||
| --- | --- |
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| 1.6. | Amendments to the Articles of Incorporation |
|---|
The Company’s Articles of Incorporation was last amended on March 24, 2023, and a proposal for further amendments is expected to be included in the agenda for the 17th Annual General Meeting of Shareholders.
| Date | Shareholder meeting through which the<br>amendments <br>were approved and ratified | 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<br>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 |
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| 2. | Business | |||||
|---|---|---|---|---|---|---|
| 2.1. | Results of Operations | |||||
| --- | --- | |||||
| (Unit: in millions of Won) | ||||||
| --- | --- | --- | --- | --- | --- | --- |
| For the year ended<br>December 31, 2024 | For the year ended<br>December 31, 2023 | For the year ended<br>December 31, 2022 | ||||
| Net interest income | 12,826,714 | 12,180,860 | 11,550,888 | |||
| Interest income | 30,491,385 | 29,142,024 | 20,787,417 | |||
| Interest expense | (17,664,671) | (16,961,164) | (9,236,529) | |||
| Net fee and commission income | 3,849,627 | 3,673,524 | 3,514,902 | |||
| Fee and commission income | 5,481,843 | 5,368,074 | 5,125,930 | |||
| Fee and commission expense | (1,632,216) | (1,694,550) | (1,611,028) | |||
| Insurance service result | 1,649,761 | 1,446,852 | 1,341,760 | |||
| Insurance income | 11,456,191 | 11,005,471 | 10,099,395 | |||
| Insurance expense | (9,806,430) | (9,558,619) | (8,757,635) | |||
| Net gains (losses) on financial assets/liabilities at fair value through profit or loss | 1,012,081 | 2,163,065 | (1,139,818) | |||
| Other insurance finance income (expenses) | (437,001) | (572,476) | 720,214 | |||
| Net other operating expenses | (1,873,011) | (2,712,989) | (2,262,123) | |||
| General and administrative expenses | (6,938,624) | (6,647,406) | (6,643,654) | |||
| Operating profit before provision for credit losses | 10,089,547 | 9,531,430 | 7,082,169 | |||
| Provision for credit losses | (2,044,286) | (3,146,409) | (1,847,775) | |||
| Net operating profit | 8,045,261 | 6,385,021 | 5,234,394 |
Notes: (1) Based on K-IFRS (on a consolidated basis).
| (2) | KB Financial Group’s results of operations for the years ended December 31, 2022 and 2023 above have<br>been restated retrospectively to reflect the Financial Supervisory Service’s responses to certain accounting inquiries regarding the application of K-IFRS 1117 (Insurance Contracts).<br> |
|---|
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| 2.2. | Sources and Uses of Funds |
|---|
2.2.1. Sources of Funds
| (Unit: in millions of Won) | |||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| For the year ended<br>December 31, 2024 | For the year ended<br>December 31, 2023 | For the year ended<br>December 31, 2022 | |||||||||||||||||
| Average<br>Balance | Interest Rate<br>(%) | Ratio<br>(%) | Average<br>Balance | Interest Rate<br>(%) | Ratio<br>(%) | Average<br>Balance | Interest Rate<br>(%) | Ratio<br>(%) | |||||||||||
| Won Currency | Deposits | 359,346,604 | 2.45 | 48.87 | 337,478,959 | 2.53 | 48.52 | 333,078,280 | 1.27 | 50.66 | |||||||||
| Certificate of deposit | 11,148,293 | 3.84 | 1.52 | 10,417,992 | 4.07 | 1.50 | 5,511,822 | 2.35 | 0.84 | ||||||||||
| Borrowings | 32,774,664 | 3.47 | 4.46 | 32,807,456 | 3.38 | 4.72 | 31,023,810 | 1.92 | 4.72 | ||||||||||
| Call money | 1,747,858 | 3.43 | 0.24 | 1,384,033 | 3.52 | 0.20 | 1,314,525 | 2.02 | 0.20 | ||||||||||
| Debentures | 58,497,966 | 3.67 | 7.96 | 56,245,329 | 3.34 | 8.09 | 57,909,399 | 2.40 | 8.81 | ||||||||||
| Others | 24,034,767 | 4.09 | 3.26 | 21,767,083 | 4.49 | 3.13 | 18,719,665 | 2.61 | 2.85 | ||||||||||
| Subtotal | 487,550,152 | 2.78 | 66.31 | 460,100,852 | 2.82 | 66.16 | 447,557,501 | 1.53 | 68.08 | ||||||||||
| Foreign Currency | Deposits | 37,798,747 | 4.12 | 5.14 | 35,675,306 | 3.97 | 5.13 | 34,076,754 | 2.09 | 5.18 | |||||||||
| Borrowings | 18,638,964 | 4.60 | 2.54 | 21,094,988 | 4.30 | 3.03 | 22,970,783 | 1.90 | 3.49 | ||||||||||
| Call money | 1,796,999 | 5.16 | 0.24 | 1,348,423 | 4.76 | 0.19 | 1,572,913 | 1.87 | 0.24 | ||||||||||
| Debentures | 14,573,073 | 3.29 | 1.98 | 12,884,157 | 3.31 | 1.85 | 11,978,139 | 2.09 | 1.82 | ||||||||||
| Others | 1,166,042 | 4.38 | 0.16 | 1,067,253 | 3.51 | 0.15 | 1,685,165 | 1.46 | 0.26 | ||||||||||
| Subtotal | 73,973,825 | 4.11 | 10.06 | 72,070,127 | 3.96 | 10.35 | 72,283,754 | 2.01 | 10.99 | ||||||||||
| Others | Total shareholders’ equity | 59,062,845 | — | 8.03 | 56,740,649 | — | 8.16 | 63,476,844 | — | 9.66 | |||||||||
| Allowances | 1,530,852 | — | 0.21 | 1,055,315 | — | 0.15 | 1,120,303 | — | 0.17 | ||||||||||
| Others | 113,145,013 | — | 15.39 | 105,610,633 | — | 15.18 | 73,011,147 | — | 11.10 | ||||||||||
| Subtotal | 173,738,710 | — | 23.63 | 163,406,597 | — | 23.49 | 137,608,294 | — | 20.93 | ||||||||||
| Total | 735,262,687 | — | 100.00 | 695,577,576 | — | 100.00 | 657,449,549 | — | 100.00 |
Notes: (1) Based on K-IFRS (on a consolidated basis).
| (2) | KB Financial Group’s results of operations for the years ended December 31, 2022 and 2023 above have<br>been restated retrospectively to reflect the Financial Supervisory Service’s responses to certain accounting inquiries regarding the application of K-IFRS 1117 (Insurance Contracts).<br> |
|---|
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2.2.2. Uses of Funds
| (Unit: in millions of Won) | |||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| For the year ended<br>December 31, 2024 | For the year ended<br>December 31, 2023 | For the year ended<br>December 31, 2022 | |||||||||||||||||||||||
| Average<br>Balance | Interest Rate<br>(%) | Ratio<br>(%) | Average<br>Balance | Interest Rate<br>(%) | Ratio<br>(%) | Average<br>Balance | Interest Rate<br>(%) | Ratio<br>(%) | |||||||||||||||||
| Won Currency | Due from banks | 15,397,433 | 0.83 | 2.09 | 14,595,696 | 1.04 | 2.10 | 15,623,299 | 0.65 | 2.38 | |||||||||||||||
| Securities | 180,330,525 | 3.22 | 24.53 | 166,163,329 | 3.27 | 23.89 | 144,081,223 | 1.35 | 21.92 | ||||||||||||||||
| Loans | 390,097,807 | 4.67 | 53.06 | 369,004,854 | 4.82 | 53.05 | 356,593,624 | 3.56 | 54.23 | ||||||||||||||||
| Guarantee payments under payment guarantee | 5,835 | 0.99 | — | 5,114 | 0.81 | — | 6,891 | 0.19 | — | ||||||||||||||||
| Call loan | 264,716 | 3.56 | 0.04 | 286,735 | 3.62 | 0.04 | 694,196 | 2.02 | 0.11 | ||||||||||||||||
| Private placement corporate bonds | 1,127,090 | 5.79 | 0.15 | 1,161,338 | 3.08 | 0.17 | 649,861 | 3.43 | 0.10 | ||||||||||||||||
| Credit cards | 23,320,536 | 8.12 | 3.17 | 22,738,818 | 7.95 | 3.27 | 22,069,290 | 6.94 | 3.36 | ||||||||||||||||
| Others | 3,829,387 | 17.76 | 0.53 | 3,235,831 | 18.40 | 0.47 | 4,418,943 | 9.49 | 0.67 | ||||||||||||||||
| Allowance | (4,193,334 | ) | — | (0.57 | ) | (3,559,486 | ) | — | (0.51 | ) | (2,802,277 | ) | — | (0.43 | ) | ||||||||||
| Subtotal | 610,179,995 | 4.39 | 83.00 | 573,632,229 | 4.51 | 82.48 | 541,335,050 | 3.09 | 82.34 | ||||||||||||||||
| Foreign Currency | Due from banks | 9,494,397 | 2.92 | 1.29 | 8,868,559 | 2.39 | 1.27 | 9,176,064 | 0.76 | 1.40 | |||||||||||||||
| Securities | 23,085,246 | 5.60 | 3.14 | 22,373,470 | 4.81 | 3.22 | 18,202,648 | 2.04 | 2.77 | ||||||||||||||||
| Loans | 37,007,504 | 7.60 | 5.03 | 36,723,273 | 7.48 | 5.28 | 37,059,183 | 5.35 | 5.63 | ||||||||||||||||
| Call loan | 6,018,342 | 5.33 | 0.82 | 6,393,291 | 5.19 | 0.92 | 8,829,592 | 2.12 | 1.34 | ||||||||||||||||
| Bills bought | 1,979,563 | 5.52 | 0.27 | 2,047,390 | 5.58 | 0.92 | 2,541,838 | 2.32 | 0.39 | ||||||||||||||||
| Allowance | (1,515,396 | ) | — | (0.21 | ) | (1,319,579 | ) | — | (0.19 | ) | (1,016,326 | ) | — | (0.15 | ) | ||||||||||
| Others | 2,346,259 | — | 0.32 | 2,742,464 | — | 0.39 | 2,238,462 | — | 0.34 | ||||||||||||||||
| Subtotal | 78,415,915 | 6.23 | 10.66 | 77,828,868 | 5.84 | 11.18 | 77,031,461 | 3.50 | 11.72 | ||||||||||||||||
| Others | Cash | 1,576,791 | — | 0.21 | 1,681,170 | — | 0.24 | 1,831,093 | — | 0.28 | |||||||||||||||
| Fixed assets held for business | 9,391,370 | — | 1.28 | 8,788,637 | — | 1.26 | 7,545,298 | — | 1.15 | ||||||||||||||||
| Others | 35,698,616 | — | 4.85 | 33,646,672 | — | 4.84 | 29,706,647 | — | 4.51 | ||||||||||||||||
| Subtotal | 46,666,777 | — | 6.34 | 44,116,479 | — | 6.34 | 39,083,038 | — | 5.94 | ||||||||||||||||
| Total | 735,262,687 | — | 100.00 | 695,577,576 | — | 100.00 | 657,449,549 | — | 100.00 |
Notes: (1) Based on K-IFRS (on a consolidated basis).
| (2) | KB Financial Group’s results of operations for the years ended December 31, 2022 and 2023 above have<br>been restated retrospectively to reflect the Financial Supervisory Service’s responses to certain accounting inquiries regarding the application of K-IFRS 1117 (Insurance Contracts).<br> |
|---|
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 December 31, 2024 | As of December 31, 2023 | As of December 31, 2022 | ||||
| Total capital (A) | 46,849 | 53,744 | 48,970 | |||
| Risk-weighted assets (B) | 345,981 | 321,319 | 302,984 | |||
| BIS ratio (A/B) | 16.43% | 16.73% | 16.16% | |||
| Notes: | (1) Calculated in accordance with Basel III. | |||||
| --- | --- | |||||
| (2) | KB Real Estate Trust Co., Ltd. is currently reviewing the details for reflecting certain of its land trust<br>agreements in its risk-weighted assets and provisions. As such, these adjustments have not been reflected as of December 31, 2024, | |||||
| --- | --- | |||||
| Kookmin Bank | (Unit: in billions of Won, except percentages) | |||||
| --- | --- | --- | --- | --- | --- | --- |
| As of December 31, 2024 | As of December 31, 2023 | As of December 31, 2022 | ||||
| Total capital (A) | 40,574 | 39,040 | 36,233 | |||
| Risk-weighted assets (B) | 234,436 | 215,962 | 207,558 | |||
| BIS ratio (A/B) | 17.31% | 18.08% | 17.46% | |||
| Notes: | (1) Calculated in accordance with Basel III. | |||||
| --- | --- | |||||
| (2) | The figures as of December 31, 2024 are preliminary. | |||||
| --- | --- | |||||
| KB Securities Co., Ltd. | (Unit: in billions of Won, except percentages) | |||||
| --- | --- | --- | --- | --- | --- | --- |
| As of December 31, 2024 | As of December 31, 2023 | As of December 31, 2022 | ||||
| Net operating capital (A) | 5,397 | 5,058 | 4,554 | |||
| Total amount at risk (B) | 3,176 | 2,934 | 2,655 | |||
| Maintenance equity margin (C) | 134 | 134 | 134 | |||
| Net capital ratio (A-B)/(C) | 1,654.45% | 1,582.09% | 1,414.74% | |||
| Capital surplus (A-B) | 2,221 | 2,124 | 1,899 | |||
| KB Insurance Co., Ltd. | (Unit: in billions of Won, except percentages) | |||||
| --- | --- | --- | --- | --- | --- | --- |
| As of December 31, 2024 | As of December 31, 2023 | As of December 31, 2022 | ||||
| Available capital (A) | 11,310 | 11,669 | 4,608 | |||
| Required capital (B) | 6,074 | 5,404 | 2,684 | |||
| Capital Adequacy ratio (A/B)^(2)^ | 186.19% | 215.94% | 171.66% | |||
| Notes: | (1) The figures as of December 31, 2024 are preliminary. | |||||
| --- | --- | |||||
| (2) | Pursuant to the change in capital adequacy system from the Risk-Based Capital (“RBC”) system to the<br>Korean Insurance Capital Standard (“K-ICS”) system in 2023, the capital adequacy ratio as of December 31, 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. | |||||
| --- | --- |
Table of Contents
2.3.2. Overseas Credit Ratings
| (As of December 31, 2024) | ||||
|---|---|---|---|---|
| Rating Company | Moody’s | S&P | ||
| Type | Long-term | Short-term | Long-term | Short-term |
| Credit Rating | A1 | P-1 | A | A-1 |
2.3.3. Domestic Credit Ratings
| Date of Rating | Type | Credit Rating | Rating Company<br><br><br>(Rating Range) |
|---|---|---|---|
| 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) /<br><br><br>NICE Investors Service (AAA ~ D) |
| 6/2/2022 | Debentures | AAA | Korea Ratings (AAA ~ D) / KIS Ratings (AAA ~ D) /<br><br><br>NICE Investors Service (AAA ~ D) |
| 6/20/2022 | Commercial Paper | A1 | Korea Ratings (A1 ~ D) / KIS Ratings (A1 ~ D) /<br><br><br>NICE Investors Service (A1 ~ D) |
| 8/16/2022 | Contingent Convertible Bonds | AA- | Korea Ratings (AAA ~ D) / KIS Ratings (AAA ~ D) /<br><br><br>NICE Investors Service (AAA ~ D) |
| 2/3/2023 | Contingent Convertible Bonds | AA- | Korea Ratings (AAA ~ D) / KIS Ratings (AAA ~ D) /<br><br><br>NICE Investors Service (AAA ~ D) |
| 6/23/2023 | Commercial Paper | A1 | Korea Ratings (A1 ~ D) / KIS Ratings (A1 ~ D) /<br><br><br>NICE Investors Service (A1 ~ D) |
| 2/28/2024 | Contingent Convertible Bonds | AA- | Korea Ratings (AAA ~ D) / KIS Ratings (AAA ~ D) /<br><br><br>NICE Investors Service (AAA ~ D) |
| 10/18/2024 | Debentures | AAA | NICE Investors Service (AAA ~ D) |
| 10/18/2024 | Commercial Paper | A1 | NICE Investors Service (A1 ~ D) |
| 10/21/2024 | Debentures | AAA | Korea Ratings (AAA ~ D) / KIS Ratings (AAA ~ D) |
| 10/21/2024 | Commercial Paper | A1 | KIS Ratings (A1 ~ D) |
| 11/6/2024 | Commercial Paper | A1 | Korea Ratings (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 RetiredPersons |
|---|---|---|
| January 28, 2019 | 615 | |
| January 20, 2020 | 462 | |
| January 30, 2021 | 800 | |
| Kookmin Bank | January 21, 2022 | 674 |
| January 18, 2023 | 713 | |
| January 19, 2024 | 674 | |
| January 18, 2025 | 647 |
Table of Contents
2.3.5. Other Factors Affecting the Group’s Financial Condition and Results ofOperations
The economic outlook for Korea and its financial services sector in 2025 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 interest and exchange rate fluctuations, high levels of inflation as a result of increased tariffs, 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 escalations in trade protectionism globally, changes in the global policies of the United States, Russia’s ongoing invasion of Ukraine and its effects on global commodity prices, the ongoing conflicts in the Middle East, accelerating de-globalization trends and a potential economic slowdown or credit-related challenges in China.
Table of Contents
| 3. | Financial Information |
|---|---|
| 3.1. | Consolidated Financial Information |
| --- | --- |
3.1.1. Consolidated Statements of Financial Position
| (Unit: in millions of Won) | ||||||
|---|---|---|---|---|---|---|
| As of December 31, 2024 | As of December 31, 2023 | As of December 31, 2022 | ||||
| Cash and due from financial institutions | 29,869,111 | 29,836,311 | 32,474,750 | |||
| Financial assets at fair value through profit or loss | 79,450,093 | 77,038,267 | 70,092,497 | |||
| Derivative financial assets | 11,730,767 | 6,157,628 | 9,446,580 | |||
| Loans measured at amortized cost | 472,071,840 | 444,805,287 | 433,038,931 | |||
| Financial investments | 131,009,464 | 122,199,529 | 115,452,659 | |||
| Investments in associates and joint ventures | 947,390 | 722,222 | 682,669 | |||
| Insurance assets | 276,191 | 229,640 | 83,304 | |||
| Reinsurance assets | 1,497,147 | 1,642,432 | 1,484,622 | |||
| Property and equipment | 5,390,015 | 4,945,699 | 4,991,467 | |||
| Investment property | 3,759,176 | 4,109,784 | 3,148,340 | |||
| Intangible assets | 1,966,684 | 1,950,858 | 1,858,470 | |||
| Net defined benefit assets | 258,500 | 374,090 | 478,934 | |||
| Current income tax assets | 339,855 | 244,317 | 204,690 | |||
| Deferred income tax assets | 278,824 | 274,225 | 188,372 | |||
| Assets held for sale | 136,838 | 208,230 | 211,758 | |||
| Other assets | 18,863,637 | 20,986,897 | 14,815,439 | |||
| Total assets | **** | 757,845,532 | **** | 715,725,416 | **** | 688,653,482 |
| Financial liabilities at fair value through profit or loss | 10,720,231 | 10,920,435 | 12,271,604 | |||
| Derivative financial liabilities | 11,783,494 | 6,210,639 | 9,509,769 | |||
| Deposits | 435,687,897 | 406,512,434 | 393,928,904 | |||
| Borrowings | 68,077,012 | 69,583,561 | 71,717,366 | |||
| Debentures | 76,171,257 | 69,176,668 | 68,698,203 | |||
| Insurance contract liabilities | 55,863,701 | 50,617,990 | 46,372,434 | |||
| Reinsurance contract liabilities | 56,266 | 36,030 | 31,728 | |||
| Provisions | 927,632 | 1,444,418 | 933,701 | |||
| Net defined benefit liabilities | 100,187 | 81,869 | 85,745 | |||
| Current income tax liabilities | 530,720 | 145,335 | 998,681 | |||
| Deferred income tax liabilities | 1,682,292 | 2,094,912 | 1,452,057 | |||
| Other liabilities | 36,429,662 | 40,264,935 | 28,850,033 | |||
| Total liabilities | **** | 698,030,351 | **** | 657,089,226 | **** | 634,850,225 |
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| As of December 31, 2024 | As of December 31, 2023 | As of December 31, 2022 | |||||||
|---|---|---|---|---|---|---|---|---|---|
| Equity attributable to shareholders of the parent company | 57,888,952 | 56,692,684 | 52,523,155 | ||||||
| Share capital | 2,090,558 | 2,090,558 | 2,090,558 | ||||||
| Hybrid securities | 5,082,578 | 5,032,803 | 4,434,251 | ||||||
| Capital surplus | 16,646,734 | 16,647,916 | 16,940,731 | ||||||
| Accumulated other comprehensive income | 496,922 | 2,152,644 | 1,002,881 | ||||||
| Retained earnings | 34,808,220 | 31,934,600 | 28,890,922 | ||||||
| Treasury shares | (1,236,060 | ) | (1,165,837 | ) | (836,188 | ) | |||
| Non-controlling interests | 1,926,229 | 1,943,506 | 1,280,102 | ||||||
| Total equity | **** | 59,815,181 | **** | **** | 58,636,190 | **** | **** | 53,803,257 | **** |
| Total liabilities and equity | **** | 757,845,532 | **** | **** | 715,725,416 | **** | **** | 688,653,482 | **** |
| Number of companies included as a consolidated entity | **** | 347 | **** | **** | 371 | **** | **** | 380 | **** |
| Notes: (1) | The consolidated financial information for the year ended December 31, 2024 is expected to be approved at<br>the annual general meeting of shareholders. If such proposal is rejected or modified, then KB Financial Group will disclose such matter through a separate amendment filing. | ||||||||
| --- | --- | ||||||||
| (2) | The figures as of December 31, 2022 and 2023 above have been restated retrospectively to reflect the<br>Financial Supervisory Service’s responses to certain accounting inquiries regarding the application of K-IFRS 1117 (Insurance Contracts). | ||||||||
| --- | --- |
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3.1.2. Consolidated Statements of Comprehensive Income
| (Unit: in millions of Won, except per share amounts) | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| For the year ended<br>December 31, 2024 | For the year ended<br>December 31, 2023 | For the year ended<br>December 31, 2022 | |||||||
| Net interest income | 12,826,714 | 12,180,860 | 11,550,888 | ||||||
| Interest income | 30,491,385 | 29,142,024 | 20,787,417 | ||||||
| Interest income from financial instruments at fair value through other comprehensive income and<br>amortized cost | 29,001,556 | 27,705,759 | 19,841,175 | ||||||
| Interest income from financial instruments at fair value through profit or loss | 1,458,512 | 1,415,366 | 929,735 | ||||||
| Insurance finance interest income | 31,317 | 20,899 | 16,507 | ||||||
| Interest expense | (17,664,671 | ) | (16,961,164 | ) | (9,236,529 | ) | |||
| Interest expense | (16,186,914 | ) | (15,426,706 | ) | (7,776,631 | ) | |||
| Insurance finance interest expense | (1,477,757 | ) | (1,534,458 | ) | (1,459,898 | ) | |||
| Net fee and commission income | 3,849,627 | 3,673,524 | 3,514,902 | ||||||
| Fee and commission income | 5,481,843 | 5,368,074 | 5,125,930 | ||||||
| Fee and commission expense | (1,632,216 | ) | (1,694,550 | ) | (1,611,028 | ) | |||
| Insurance service result | 1,649,761 | 1,446,852 | 1,341,760 | ||||||
| Insurance income | 11,456,191 | 11,005,471 | 10,099,395 | ||||||
| Insurance income | 11,017,155 | 10,322,356 | 9,577,005 | ||||||
| Reinsurance income | 439,036 | 683,115 | 522,390 | ||||||
| Insurance expense | (9,806,430 | ) | (9,558,619 | ) | (8,757,635 | ) | |||
| Insurance service expense | (8,884,168 | ) | (8,720,568 | ) | (7,981,780 | ) | |||
| Reinsurance expense | (922,262 | ) | (838,051 | ) | (775,855 | ) | |||
| Net gains (losses) on financial assets/liabilities at fair value through profit or loss | 1,012,081 | 2,163,065 | (1,139,818 | ) | |||||
| Other insurance finance income (expenses) from contract held | (437,001 | ) | (572,476 | ) | 720,214 | ||||
| Net other operating expenses | (1,873,011 | ) | (2,712,989 | ) | (2,262,123 | ) | |||
| General and administrative expenses | (6,938,624 | ) | (6,647,406 | ) | (6,643,654 | ) | |||
| Operating income before provision for credit losses | 10,089,547 | 9,531,430 | 7,082,169 | ||||||
| Provision for credit losses | (2,044,286 | ) | (3,146,409 | ) | (1,847,775 | ) | |||
| Net operating income | 8,045,261 | 6,385,021 | 5,234,394 | ||||||
| Net non-operating income (expenses) | (1,060,014 | ) | (264,870 | ) | 160,569 | ||||
| Share of profit (loss) of associates and joint ventures | (16,884 | ) | 33,110 | (28,755 | ) | ||||
| Net other non-operating income (expenses) | (1,043,130 | ) | (297,980 | ) | 189,324 | ||||
| Profit before income tax expense | 6,985,247 | 6,120,151 | 5,394,963 | ||||||
| Income tax expense | (1,956,641 | ) | (1,593,817 | ) | (1,504,061 | ) | |||
| Profit for the period | 5,028,606 | 4,526,334 | 3,890,902 | ||||||
| Other comprehensive income (loss) for the period, net of tax | (1,622,712 | ) | 1,171,144 | 7,100 | |||||
| Items that will not be reclassified to profit or loss: |
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| For the year ended<br>December 31, 2024 | For the year ended<br>December 31, 2023 | For the year ended<br>December 31, 2022 | |||||||
|---|---|---|---|---|---|---|---|---|---|
| Remeasurements of net defined benefit liabilities | (85,375 | ) | (72,170 | ) | 239,701 | ||||
| Share of other comprehensive income (loss) of associates and joint ventures | 0 | (2 | ) | 183 | |||||
| Gains (losses) on equity securities at fair value through other comprehensive income | (254,864 | ) | 69,605 | (932,058 | ) | ||||
| Fair value changes of financial liabilities designated at fair value through profit or loss due to<br>own credit risk | (5,514 | ) | (52,863 | ) | 38,855 | ||||
| Items that may be reclassified subsequently to profit or loss: | |||||||||
| Currency translation differences | 582,872 | 317 | 165,568 | ||||||
| Gains (losses) on debt securities at fair value through other comprehensive income | 1,468,299 | 3,304,471 | (5,342,895 | ) | |||||
| Share of other comprehensive income (loss) of associates and joint ventures | 165 | 26 | (545 | ) | |||||
| Gains on cash flow hedging instruments | 34,741 | 53,923 | 26,168 | ||||||
| Losses on hedging instruments of net investments in foreign operations | (186,708 | ) | (14,659 | ) | (79,085 | ) | |||
| Insurance finance income (expenses) | (3,176,328 | ) | (2,117,504 | ) | 5,891,208 | ||||
| Total comprehensive income for the period | 3,405,894 | 5,697,478 | 3,898,002 | ||||||
| Profit attributable to: | |||||||||
| Shareholders of the parent company | 5,078,221 | 4,594,835 | 4,112,493 | ||||||
| Non-controlling interests | (49,615 | ) | (68,501 | ) | (221,591 | ) | |||
| Total comprehensive income for the period attributable to: | |||||||||
| Shareholders of the parent company | 3,419,852 | 5,772,352 | 4,106,054 | ||||||
| Non-controlling interests | (13,958 | ) | (74,874 | ) | (208,052 | ) | |||
| Earnings per share | |||||||||
| Basic earnings per share (Won) | 12,880 | 11,483 | 10,230 | ||||||
| Diluted earnings per share (Won) | 12,726 | 11,218 | 9,998 | ||||||
| Notes: (1) | The consolidated financial information for the year ended December 31, 2024 is expected to be approved at<br>the annual general meeting of shareholders. If such proposal is rejected or modified, then KB Financial Group will disclose such matter through a separate amendment filing. | ||||||||
| --- | --- | ||||||||
| (2) | The figures for the year ended December 31, 2022 and 2023 above have been restated retrospectively to<br>reflect the Financial Supervisory Service’s responses to certain accounting inquiries regarding the application of K-IFRS 1117 (Insurance Contracts). | ||||||||
| --- | --- |
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| 3.2. | Separate Financial Information |
|---|
3.2.1. Separate Statements of Financial Position
| (Unit: in millions of Won) | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| As of December 31, 2024 | As of December 31, 2023 | As of December 31, 2022 | |||||||
| Cash and due from financial institutions | 398,391 | 256,337 | 351,056 | ||||||
| Financial assets at fair value<br><br><br>through profit or loss | 1,243,471 | 1,376,423 | 1,522,314 | ||||||
| Loans measured at amortized cost | 359,054 | 608,286 | 522,326 | ||||||
| Investments in subsidiaries | 26,867,817 | 26,717,817 | 26,741,438 | ||||||
| Property and equipment | 2,800 | 3,080 | 3,552 | ||||||
| Intangible assets | 14,497 | 15,954 | 16,752 | ||||||
| Net defined benefit assets | 2,902 | 3,694 | 4,288 | ||||||
| Deferred income tax assets | 5,257 | 4,492 | 19,904 | ||||||
| Other assets | 912,634 | 542,815 | 1,272,197 | ||||||
| Total assets | 29,806,823 | 29,528,898 | 30,453,827 | ||||||
| Borrowings | 965,000 | 100,000 | 0 | ||||||
| Debentures | 2,962,032 | 3,871,820 | 4,956,949 | ||||||
| Current income tax liabilities | 502,705 | 104,299 | 926,573 | ||||||
| Other liabilities | 388,528 | 410,704 | 338,489 | ||||||
| Total liabilities | 4,818,265 | 4,486,823 | 6,222,011 | ||||||
| Share capital | 2,090,558 | 2,090,558 | 2,090,558 | ||||||
| Hybrid securities | 5,082,359 | 5,032,518 | 4,433,981 | ||||||
| Capital surplus | 14,754,475 | 14,754,747 | 14,754,747 | ||||||
| Accumulated other<br><br><br>comprehensive loss | (8,316 | ) | (6,809 | ) | (5,847 | ) | |||
| Retained earnings | 4,305,542 | 4,336,898 | 3,794,565 | ||||||
| Treasury Shares | (1,236,060 | ) | (1,165,837 | ) | (836,188 | ) | |||
| Total equity | 24,988,558 | 25,042,075 | 24,231,816 | ||||||
| Total liabilities and equity | 29,806,823 | 29,528,898 | 30,453,827 | ||||||
| Note: | The separate financial information for the year ended December 31, 2024 is expected to be approved at the<br>annual general meeting of shareholders. If such proposal is rejected or modified, then KB Financial Group will disclose such matter through a separate amendment filing. | ||||||||
| --- | --- |
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3.2.2. Separate Statements of Comprehensive Income
| (Unit: in millions of Won, except per share amounts) | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| For the year ended<br>December 31, 2024 | For the year ended<br>December 31, 2023 | For the year ended<br>December 31, 2022 | |||||||
| Net interest expense | (62,371 | ) | (64,853 | ) | (92,951 | ) | |||
| Interest income | 38,702 | 35,127 | 19,402 | ||||||
| Interest income from financial instruments at amortized cost | 35,860 | 31,932 | 16,525 | ||||||
| Interest income from financial instruments at fair value through profit or loss | 2,842 | 3,195 | 2,877 | ||||||
| Interest expense | (101,073 | ) | (99,980 | ) | (112,353 | ) | |||
| Net fee and commission expense | (7,247 | ) | (10,387 | ) | (8,686 | ) | |||
| Fee and commission income | 2,213 | 2,585 | 3,399 | ||||||
| Fee and commission expense | (9,460 | ) | (12,972 | ) | (12,085 | ) | |||
| Net gains (losses) on financial assets at fair value through profit or loss | 91,892 | 108,399 | (11,794 | ) | |||||
| Net other operating income | 2,243,253 | 2,192,385 | 1,871,224 | ||||||
| General and administrative expenses | (95,655 | ) | (92,603 | ) | (89,149 | ) | |||
| Operating profit before provision for credit losses | 2,169,872 | 2,132,941 | 1,668,644 | ||||||
| Reversal of (provision for) credit losses | 773 | (546 | ) | (303 | ) | ||||
| Operating profit | 2,170,645 | 2,132,395 | 1,668,341 | ||||||
| Net non-operating income | 10 | 4,606 | 908 | ||||||
| Profit before income tax | 2,170,655 | 2,137,001 | 1,669,249 | ||||||
| Income tax income (expense) | (58 | ) | (15,757 | ) | 15,263 | ||||
| Profit for the year | 2,170,597 | 2,121,244 | 1,684,512 | ||||||
| Other comprehensive income (loss) for the year, net of tax | (1,507 | ) | (962 | ) | 2,483 | ||||
| Items that will not be reclassified to profit or loss: | |||||||||
| Remeasurements of net defined benefit liabilities | (1,507 | ) | (962 | ) | 2,483 | ||||
| Total comprehensive income for the year | 2,169,090 | 2,120,282 | 1,686,995 | ||||||
| Earnings per share | |||||||||
| Basic earnings per share (Won) | 5,203 | 5,042 | 3,999 | ||||||
| Diluted earnings per share (Won) | 5,142 | 4,929 | 3,912 | ||||||
| Note: | The separate financial information for the year ended December 31, 2024 is expected to be approved at the<br>annual general meeting of shareholders. If such proposal is rejected or modified, then KB Financial Group will disclose such matter through a separate amendment filing. | ||||||||
| --- | --- |
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 December 31, 2024 | As of December 31, 2023 | As of December 31, 2022 | |||||||
| Current assets in Won (A) | 592,591 | 656,555 | 959,935 | ||||||
| Current liabilities in Won (B) | 383,862 | 255,693 | 592,727 | ||||||
| Liquidity ratio (A/B) | 154.38 | % | 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<br>one month. | ||||||||
| --- | --- |
3.3.2. Profitability Ratios
| (Unit: %) | ||||
|---|---|---|---|---|
| For the year ended<br>December 31, 2024 | For the year ended<br>December 31, 2023 | For the year ended<br>December 31, 2022 | ||
| Net income as a percentage of average total assets (ROA) | 0.68 | 0.64 | 0.57 | |
| Net income as a percentage of average shareholders’ equity (ROE) | 8.85 | 8.32 | 8.10 | |
| Note: | Based on K-IFRS (on a consolidated basis). | |||
| --- | --- |
3.3.3. 20 Largest Exposures of Kookmin Bank by Borrower (As of December 31, 2024)
| (Unit: in billions of Won) | ||
|---|---|---|
| Company | Credit Extended | |
| Samsung Electronics Co., Ltd. | 1,942 | |
| HD Hyundai Heavy Industries Co., Ltd. | 1,552 | |
| KB Kookmin Card Co., Ltd. | 1,414 | |
| E-MART Inc. | 1,380 | |
| Samsung Heavy Industries Co., Ltd. | 1,318 | |
| LG Display Co., Ltd. | 1,311 | |
| Construction Guarantee | 1,298 | |
| SK on Co., Ltd. | 1,200 | |
| Hanwha Solutions Corporation | 1,108 | |
| Samsung SDI Co., Ltd. | 962 | |
| Strada Holdco L.P. | 917 | |
| SK Innovation Co., Ltd. | 786 | |
| LG Energy Solution Ltd. | 779 | |
| POSCO International Corporation | 769 | |
| Hyundai Samho Heavy Industries Co., Ltd. | 767 | |
| SK Inc. | 756 | |
| NH-Amundi Asset Management Co., Ltd. | 718 | |
| S-OIL Corporation | 702 | |
| Lotte Shopping Co., Ltd. | 693 | |
| GS Caltex Corporation | 691 | |
| Total | 21,063 |
Table of Contents
3.3.4. 10 Largest Exposures of Kookmin Bank by Chaebol Group (As of December 31,2024)
| (Unit: in billions of Won) | ||
|---|---|---|
| Group | Credit Extended | |
| Samsung | 5,904 | |
| SK | 5,719 | |
| Hanwha | 4,103 | |
| Hyundai Motor | 4,054 | |
| HD Hyundai (former Hyundai Heavy Industries) | 3,899 | |
| Lotte | 3,712 | |
| LG | 3,505 | |
| Shinsegae | 1,935 | |
| GS | 1,846 | |
| POSCO | 1,773 | |
| Total | 36,451 |
3.3.5. Kookmin Bank’s Loan Concentration by Industry (As of December 31, 2024)
| (Unit: in billions of Won, except percentages) | ||||
|---|---|---|---|---|
| Industry | TotalCredit | Percentage ofTotal Credit | ||
| Manufacturing | 60,138 | 26.4 | ||
| Construction | 4,739 | 2.1 | ||
| Real estate activities | 58,704 | 25.8 | ||
| Wholesale and retail trade | 31,307 | 13.8 | ||
| Accommodation and food service activities | 11,519 | 5.1 | ||
| Financial activities | 10,176 | 4.5 | ||
| Others | 51,073 | 22.4 | ||
| Total | 227,655 | 100.0 |
Table of Contents
3.3.6. Top 20 Non-Performing Loans ofKookmin Bank (As of December 31, 2024)
| (Unit: in billions of Won) | |||||
|---|---|---|---|---|---|
| Borrower | Industry | TotalCredit | Allowance for<br>Loan Losses | ||
| Borrower A | Real estate activities | 206.4 | 66.9 | ||
| Borrower B | Construction | 37.6 | 36.5 | ||
| Borrower C | Real estate activities | 32.3 | 5.8 | ||
| Borrower D | Real estate activities | 23.5 | 8.9 | ||
| Borrower E | Wholesale and retail trade | 20.0 | 13.0 | ||
| Borrower F | Manufacturing | 16.4 | 4.1 | ||
| Borrower G | Real estate activities | 15.9 | 10.5 | ||
| Borrower H | Real estate activities | 15.6 | 0.2 | ||
| Borrower I | Manufacturing | 14.5 | 2.8 | ||
| Borrower J | Construction | 14.5 | 13.7 | ||
| Borrower K | Human health and social work activities | 12.8 | 2.1 | ||
| Borrower L | Real estate activities | 11.0 | 1.7 | ||
| Borrower M | Manufacturing | 10.8 | 10.3 | ||
| Borrower N | Real estate activities | 9.7 | 0.8 | ||
| Borrower O | Manufacturing | 8.1 | 2.4 | ||
| Borrower P | Construction | 7.2 | 7.2 | ||
| Borrower Q | Wholesale and retail trade | 6.8 | 3.8 | ||
| Borrower R | Wholesale and retail trade | 6.7 | 0.7 | ||
| Borrower S | Manufacturing | 6.5 | 4.0 | ||
| Borrower T | Real estate activities | 6.3 | 0.6 | ||
| - | - | 482.7 | 196.0 | ||
| 3.4. | Other Financial Information | ||||
| --- | --- |
The Company’s audited consolidated and separate financial statements are available on its website at www.kbfg.com.
Table of Contents
| 4. | Independent Public Accountants | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| 4.1. | Audit / Review Services | |||||||||
| --- | --- | |||||||||
| (Unit: in millions of Won) | ||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Period | Auditor | Activity | Agreed Per Contract^(1)^ | Actual^(2)^ | ||||||
| Compensation^(3)^ | Estimated<br>Hours | Compensation^(3)^ | Accrued<br>Hours | |||||||
| January 1 to December 31, 2024 | Samil Pricewaterhouse Coopers | 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 | 1,296 | 10,136 | ||||
| January 1 to December 31, 2023 | Samil Pricewaterhouse Coopers | 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 December 31, 2024 | Samil Pricewaterhouse Coopers | PCAOB audit of consolidated financial statements and internal control over financial reporting | May 1, 2024 to<br>April 30, 2025 | 804 | ||||||
| January 1 to December 31, 2023 | Samil Pricewaterhouse Coopers | PCAOB audit of consolidated financial statements and internal control over financial reporting | May 1, 2023 to<br>April 30, 2024 | 784 | ||||||
| January 1 to December 31, 2022 | KPMG Samjong Accounting Corp. | PCAOB audit of consolidated financial statements and internal control over financial reporting | May 1, 2022 to<br>April 30, 2023 | 697 | ||||||
| Note: | (1) Total compensation (excluding value-added taxes) is established at the time of the execution of the<br>audit and review services contract. | |||||||||
| --- | --- |
Table of Contents
| 4.3. | Change in Auditor |
|---|
Following the end of KPMG Samjong Accounting Corp.’s designated period as the Company’s external 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, 2024 continued to be Samil PricewaterhouseCoopers.
| 5. | Corporate Governance and Affiliated Companies |
|---|---|
| 5.1. | Board of Directors & Committees under the Board |
| --- | --- |
As of December 31, 2024, our board of directors consisted of nine directors, comprising one executive director, one non-standing director (who resigned on December 31, 2024) 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; |
| --- | --- |
| • | Chairman Nominating Committee; |
| --- | --- |
| • | Subsidiaries’ Representative 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 December 31, 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<br>be non-executive directors. | All four Audit Committee members, including the chairman of the committee, are non-executive directors. |
| The chairman of the Audit<br>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<br>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<br>Directors<br>(Non-executive directors) | 9 (7) | 3,000 | — | ||
| Notes: (1) | Represents the total number of applicable persons as of December 31, 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 December 31, 2024) | (Unit: in millions of Won) | ||
|---|---|---|---|
| Total number of persons^(1)^ | Total<br>payment^(2)(3)^ | Average payment per person^(4)^ | Notes |
| 9 | 2,526 | 280 | — |
| Notes: (1) | Represents the total number of applicable persons as of December 31, 2024. | ||
| --- | --- | ||
| (2) | Represents the total amount paid (rounded to the nearest million) for the year ended December 31, 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 year ended December 31, 2024, divided by (ii) the number of applicable persons for the applicable reporting period. |
5.3.3. Compensation Breakdown
| (As of December 31, 2024) | (Unit: in millions of Won) | |||||||
|---|---|---|---|---|---|---|---|---|
| Total number<br>of persons^(1)^ | Total payment^(2)(3)^ | Average payment<br>per person^(4)^ | Notes | |||||
| Registered Directors^^(excluding non-executive directors and Audit Committee members) | 2 | 1,848 | 922 | — | ||||
| Non-executive Directors (excluding Audit Committee<br>members) | 3 | 283 | 94 | — | ||||
| Audit Committee members | 4 | 395 | 98 | — | ||||
| Internal Auditor | — | — | — | — | ||||
| Notes: (1) | Represents the total number of applicable persons as of December 31, 2024. | |||||||
| --- | --- | |||||||
| (2) | Represents the total amount paid (rounded to the nearest million) for the year ended December 31, 2024.<br> | |||||||
| --- | --- | |||||||
| (3) | Total payment amount in accordance with the Company’s internal policies on compensation to directors.<br> | |||||||
| --- | --- | |||||||
| (4) | Represents (i) the total amount paid (rounded to the nearest million) for the year ended December 31,<br>2024, divided by (ii) the number of applicable persons for the applicable reporting period. | |||||||
| --- | --- |
Table of Contents
| 5.4. | Top 5 Highest-Paid Individuals |
|---|
5.4.1 Compensation exceeding Won 500 million – Individual basis
| (As of December 31, 2024) | (Unit: in millions of Won) | |||
|---|---|---|---|---|
| Name | Position | Total Amount | Deferred<br>Compensation^(1)^ | |
| Jong Hee Yang | Chairman & CEO | 1,848 | - Deferred short-term performance-based payment, the amount of which corresponds to a<br>total of 3,079 shares and deferred long-term performance-based payment, the amount of which corresponds to a total of 3,945 shares.<br> <br><br><br><br>- Long-term performance-based payment (18,516 shares per year), the amount of which will be finalized at<br>a future date pursuant to a performance evaluation over a three-year period from November 21, 2023 to November 20, 2026. | |
| Scott Y.H. Seo | Senior Executive Vice President | 792 | - Deferred short-term performance-based payment, the amount of which corresponds to a<br>total of 1,796 shares and deferred long-term performance-based payment, the amount of which corresponds to a total of 4,881 shares. | |
| Bong Joong Kwon | Senior Managing Director | 605 | - Deferred short-term performance-based payment, the amount of which corresponds to a<br>total of 1,845 shares and deferred long-term performance-based payment, the amount of which corresponds to a total of 1,239 shares. | |
| Sang Duk Kim | General Manager | 509 | ||
| Cheal Soo Choi | Senior Executive Vice President | 504 | - Deferred short-term performance-based payment, the amount of which corresponds to a<br>total of 1,515 shares. | |
| Note: (1) | The actual payment amount will be finalized based on the market value of our shares at the time of payment.<br> | |||
| --- | --- |
Table of Contents
5.4.2 Calculation criteria and method of compensation
| Name | Compensation Type | Total<br>Compensation (in<br>millions of Won) | Calculation Criteria and Method | ||
|---|---|---|---|---|---|
| Jong Hee Yang | Earned income | Salary | 900 | - A monthly salary was paid in even installments each month in accordance with the amount of annual<br>salary determined by a resolution of the Evaluation and Compensation Committee within the limit of the total amount of compensation approved at the shareholders’ meeting. (This amount includes allowances for business expenses of Won<br>400 million.) | |
| Bonus | 948 | - The bonus paid in 2024 consisted of Won 473 million in short-term performance-based compensation<br>and Won 476 million in long-term performance-based compensation.<br> <br><br><br><br>- The short-term performance-based compensation consisted of the following: (i) for the period prior<br>to his appointment as the Chairman and CEO (from January 1, 2023 to November 20, 2023), Won 198 million paid as an upfront lump sum payment, Won 72 million (831 shares) as the first installment of deferred payments for the same<br>period, Won 89 million (1,018 shares) as the second installment of deferred payments for 2022, and Won 76 million (869 shares) as the third installment of deferred payments for 2021, and (ii) for the period after his appointment as<br>the Chairman and CEO (from November 21, 2023 to December 31, 2023), Won 21 million paid as an upfront lump sum payment and Won 17 million (198 shares) as the first installment of deferred payments for the same period.<br><br><br><br> <br>- The short-term performance<br>evaluation criteria for the period after his appointment as the Chairman and CEO consisted of both quantitative indicators (e.g., ROE, total operating income, net profit from non-banking businesses,<br>comprehensive NPL ratio, RoRWA, Tier 1 ratio and C/I ratio), as well as qualitative indicators (e.g., improving the core competitiveness and recovery resilience of the Group, expanding global and new growth drivers, innovating financial platforms,<br>leading sustainable management through improvements to asset quality, ESG, and internal controls, and fostering an open and creative group culture). The amount of the short-term incentive payment was determined based on a comprehensive evaluation by<br>the Evaluation and Compensation Committee and was within a range of 0%-100% of the base salary.<br> <br><br><br><br>- With respect to quantitative indicators, the Group’s net profit for 2023 was Won<br>4,631.9 billion, with key achievements including maintaining capital adequacy and effectively managing cost efficiency, which were considered as major performance factors.<br><br><br><br> <br>- The short-term performance<br>evaluation criteria for the period prior to his appointment as the Chairman and CEO consisted of quantitative indicators linked to his role as Vice Chairman, covering the retail, wealth management/pension, and SME divisions, as well as qualitative<br>indicators linked to key management objectives. The major achievements that were considered included (i) surpassing 12 million monthly active users (MAU) on the Group’s main platform (Star Banking), (ii) strengthening the Group’s<br>market position in the retirement pension sector and (iii) expanding the wealth management customer base. The amount of the incentive payment was determined based on the achievement level of each task and was within a range of 0%-120% of the base salary.<br> <br><br><br><br>- The long-term performance-based compensation consisted of Won 209 million (3,954 shares) paid as<br>an upfront lump sum payment for the period prior to his appointment as the Chairman and CEO (from January 1, 2023 to November 20, 2023), Won 77 million (878 shares) as the first installment of deferred payments for the same period,<br>and Won 190 million (2,185 shares) as the second installment of deferred payments for the period from 2021 to 2022.<br> <br><br><br><br>- The long-term performance evaluation criteria consisted of relative total shareholder return (relative TSR), the<br>Group’s performance, and individual performance results. The amount of the long-term incentive payment was determined based on the achievement level of each indicator and was within a range of 0%-100% of<br>the base salary.<br> <br><br> <br>- With respect<br>to the long-term performance evaluation, the relative total shareholder return was calculated based on changes in the Group’s share price relative to the average share price of its competitors during the evaluation period, while the<br>Group’s performance and individual performance results were determined based on the arithmetic average of annual performance evaluations. | |||
| Stock options | — | - Not applicable | |||
| Other earned income | — | - Not applicable | |||
| Retirement income | — | - Not applicable |
Table of Contents
| Name | Compensation Type | Total<br><br><br>Compensation (in<br>millions of Won) | Calculation Criteria and Method | ||
|---|---|---|---|---|---|
| Other income | — | - Not applicable | |||
| Scott Y.H. Seo | Earned income | Salary | 280 | - A monthly salary was paid in even installments each month in accordance with the amount of annual<br>salary determined based on his position and responsibilities pursuant to our internal policy regarding executive officers. | |
| Bonus | 419 | - The bonus paid in 2024 consisted of Won 248 million in short-term performance-based compensation<br>and Won 172 million in long-term performance-based compensation.<br> <br><br><br><br>- The short-term performance-based compensation consisted of Won 144 million paid as an upfront lump<br>sum payment for 2023, Won 51 million (584 shares) as the second installment of deferred payments for 2022, and Won 53 million (606 shares) as the first installment of deferred payments for 2023.<br><br><br><br> <br>- The short-term performance<br>evaluation criteria for 2023 consisted of qualitative indicators linked to key management objectives in his role as Chief Financial Officer, which were comprehensively reviewed by the Evaluation and Compensation Committee. The amount of short-term<br>incentive payment was determined within a range of 0%-120% of the base salary.<br> <br><br><br><br>- Key achievements considered for 2023 included improving the Group’s profitability structure and<br>optimizing the business model to strengthen its position as a leading financial group, enhancing capital management and financial information operations to proactively respond to regulatory changes, executing market-friendly IR and shareholder<br>meeting processes, and establishing a Group-wide internal control framework for accounting, tax, and financial reporting, as well as strengthening subsidiary oversight functions.<br><br><br><br> <br>- The long-term performance-based<br>compensation consisted of Won 172 million (3,254 shares) paid as an upfront lump sum payment for the period from 2022 to 2023.<br> <br><br><br><br>- The long-term performance evaluation criteria consisted of relative total shareholder return (relative<br>TSR), the Group’s performance, and individual performance results. The amount of the long-term incentive payment was determined based on the achievement level of each indicator and was within a range of<br>0%-100% of the base salary.<br> <br><br><br><br>- With respect to the long-term performance evaluation, the relative total shareholder return was<br>calculated based on changes in the Group’s share price relative to the average share price of its competitors during the evaluation period, while the Group’s performance and individual performance results were determined based on the<br>arithmetic average of annual performance evaluations. | |||
| Stock options | — | - Not applicable | |||
| Other earned<br>income | 22 | - Welfare benefits | |||
| Retirement income | 70 | - Pursuant to the internal policy regarding the retirement benefits of directors, the retirement income<br>was determined to be 1/12 of the officer’s salary at the date of retirement, multiplied by the number of years in office. | |||
| Other income | — | - Not applicable | |||
| Bong Joong Kwon | Earned income | Salary | 230 | - A monthly salary was paid in even installments each month in accordance with the amount of annual<br>salary determined based on his position and responsibilities pursuant to our internal policy regarding executive officers. |
Table of Contents
| Name | Compensation Type | Total<br><br><br>Compensation (in<br>millions of Won) | Calculation Criteria and Method | ||
|---|---|---|---|---|---|
| Bonus | 357 | - The bonus paid in 2024 consisted of Won 249 million in short-term performance-based compensation<br>and Won 108 million in long-term performance-based compensation.<br> <br><br><br><br>- The short-term performance-based compensation consisted of Won 101 million paid as an upfront lump<br>sum payment for 2023, Won 43 million (495 shares) as the third installment of deferred payments for 2023, Won 50 million (569 shares) as the second installment of deferred payments for 2022 and Won 56 million (637 shares) as the first<br>installment of deferred payments for 2023.<br> <br><br><br><br>- The short-term performance evaluation criteria for 2023 consisted of qualitative indicators linked to<br>key management objectives in his role as Head of Investor Relations, which were comprehensively reviewed by the Evaluation and Compensation Committee. The amount of the short-term incentive payment was determined within a range of 0%-120% of the base salary.<br> <br><br><br><br>- Key achievements considered for 2023 included executing market-friendly IR and shareholder meeting<br>processes, enhancing market confidence through accurate and transparent disclosures, improving external credit ratings management and supporting management decision-making through timely market feedback.<br><br><br><br> <br>- The long-term performance-based<br>compensation consisted of Won 108 million (1,238 shares) paid as the second installment of deferred payments for the period from 2021 to 2022.<br> <br><br><br><br>- The long-term performance evaluation criteria consisted of relative total shareholder return (relative<br>TSR), the Group’s performance, and individual performance results. The amount of the long-term incentive payment was determined based on the achievement level of each indicator and was within a range of<br>0%-100% of the base salary.<br> <br><br><br><br>- With respect to the long-term performance evaluation, the relative total shareholder return was<br>calculated based on changes in the Group’s share price relative to the average share price of its competitors during the evaluation period, while the Group’s performance and individual performance results were determined based on the<br>arithmetic average of annual performance evaluations. | |||
| Stock options | — | - Not applicable | |||
| Other earned<br>income | 18 | - Welfare benefits | |||
| Retirement income | — | - Pursuant to the internal policy regarding the retirement benefits of directors, the retirement income<br>was determined to be 1/12 of the officer’s salary at the date of retirement, multiplied by the number of years in office. | |||
| Other income | — | - Not applicable | |||
| Sang Duk Kim | Earned income | Salary | 120 | - Amount paid on each monthly salary payment date | |
| Bonus | 97 | - 2024 performance-based<br>compensation and unused annual leave compensation | |||
| Stock options | — | - Not applicable | |||
| Other earned<br>income | 11 | - Welfare benefits | |||
| Retirement income | 281 | - Basic severance payment determined pursuant to relevant regulations and internal policies regarding<br>retirement payments | |||
| Other income | — | - Not applicable |
Table of Contents
| Name | Compensation Type | Total<br><br><br>Compensation (in<br>millions of Won) | Calculation Criteria and Method | ||
|---|---|---|---|---|---|
| Cheal Soo Choi | Earned income | Salary | 260 | - A monthly salary was paid in even installments each month in accordance with the amount of annual<br>salary determined based on his position and responsibilities pursuant to our internal policy regarding executive officers. | |
| Bonus | 186 | - The bonus paid in 2024 consisted of Won 186 million in short-term performance-based<br>compensation.<br> <br><br> <br>- The short-term<br>performance-based compensation consisted of Won 120 million paid as an upfront lump sum payment for 2023 and Won 66 million (757 shares) as the first installment of deferred payments for 2023.<br><br><br><br> <br>- The short-term performance<br>evaluation criteria for 2023 consisted of qualitative indicators linked to key management objectives in his role as Chief Risk Officer, which were comprehensively reviewed by the Evaluation and Compensation Committee. The amount of short-term<br>incentive payment was determined within a range of 0%-120% of the base salary.<br> <br><br><br><br>- Key achievements considered for 2023 included prioritizing asset quality management through proactive<br>risk management of household and corporate loans, enhancing the Group’s risk management framework to ensure the financial soundness of core growth businesses, strengthening the Group’s risk management capabilities, refining the risk<br>management framework to respond to regulatory changes, and embedding a strong risk management culture across the Group. | |||
| Stock options | — | - Not applicable | |||
| Other earned<br>income | 15 | - Welfare benefits | |||
| Retirement income | 43 | - Pursuant to the internal policy regarding the retirement benefits of directors, the retirement income<br>was determined to be 1/12 of the officer’s salary at the date of retirement, multiplied by the number of years in office. | |||
| Other income | — | - Not applicable | |||
| 5.5. | 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).
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.
Table of Contents
5.5.2. Changes in the Amounts of Stock-based Compensation
5.5.2.1 Long-Term Performance Compensation
| For the year ended<br>December 31, 2024 | For the year ended<br>December 31, 2023 | For the year ended<br>December 31, 2022 | |||||||
|---|---|---|---|---|---|---|---|---|---|
| Number of Recipients^(1)(2)^ | 13 | 11 | 13 | ||||||
| Number of Performance-Linked Shares Granted^(2)(3)^ | 73,213 | 97,995 | 58,317 | ||||||
| Number of Performance-Linked Shares Paid During the Period (a+b)^(4)^ | 69,947 | 136,045 | 36,471 | ||||||
| a. Number of Shares for Stock-Linked Cash Compensation | 33,431 | 63,934 | 18,234 | ||||||
| b. Number of Shares Converted to Restricted Stocks to be Paid on a Deferred Basis | 36,516 | 72,111 | 18,237 | ||||||
| Evaluation Adjustment | (4,146 | ) | (839 | ) | (1,003 | ) | |||
| Cumulative Number of Performance-Linked Shares Paid (Sum of Stock-Linked Cash Compensation and<br>Restricted Stock Conversion)^(5)^ | 242,463 | 216,889 | 169,382 | ||||||
| Number of Unpaid Performance-Linked Shares^(3)(6)^ | 147,593 | 148,473 | 187,362 | ||||||
| Notes: (1) | Based on the beneficiaries reported to the tax office pursuant to Article 20 of the Income Tax Act of Korea.<br> | ||||||||
| --- | --- | ||||||||
| (2) | Based on the number of individuals who entered into stock-based compensation agreements each year and the<br>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.<br> | ||||||||
| --- | --- | ||||||||
| (4) | Represents the final number of shares determined after adjustments based on evaluation results. According to<br>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<br>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<br>payment. | ||||||||
| --- | --- | ||||||||
| (5) | Represents the cumulative number of shares paid up to the record date of disclosure during the reporting<br>period. | ||||||||
| --- | --- | ||||||||
| (6) | Represents the number of shares granted at the end of the year minus the actual number of shares paid.<br> | ||||||||
| --- | --- |
Table of Contents
5.5.2.2. Restricted Stock
| For the year ended<br>December 31, 2024 | For the year ended<br>December 31, 2023 | For the year ended<br>December 31, 2022 | ||||
|---|---|---|---|---|---|---|
| Number of Payment Recipients | 26 | 23 | 15 | |||
| Number of Shares Confirmed for Deferral^(1)^ | 64,997 | 113,124 | 46,557 | |||
| Number of Shares Paid^(1)^ | 73,878 | 66,512 | 58,434 | |||
| Cumulative Number of Shares Paid^(3)^ | 198,824 | 188,802 | 187,020 | |||
| Number of Unpaid Shares^(1)^ | 161,753 | 170,634 | 124,022 | |||
| Notes: (1) | Based on the number of restricted stocks confirmed based on the period of employment and the resolutions of the<br>Evaluation and Compensation Committee. | |||||
| --- | --- | |||||
| (2) | Restricted stock is paid in cash reflecting the stock price (fair market value) at the time of each deferred<br>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<br>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 December 31, 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%)
Table of Contents
| 6. | Directors, Senior Management and Employees |
|---|---|
| 6.1. | Executive Directors |
| --- | --- |
As of December 31, 2024 and March 14, 2025, we had one executive director. The name, position and the end of the term of our executive director and the number of shares of our common stock he owned as of March 14, 2025 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 |
| 6.2. | Non-standing Directors | |||
| --- | --- |
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 December 31, 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^(1)^ | |
| Note: | (1) Mr. Jae Keun Lee resigned from his position as the Group’s non-standing director on December 31, 2024, in connection with his appointment as the Senior Executive Vice President of the Group. A new non-standing director will be<br>appointed at the general meeting of shareholders for fiscal year 2024, which is expected to be held on March 26, 2025. For information on the non-standing director candidate, please refer to the<br>Company’s report on Form 6-K furnished to the Securities and Exchange Commission on March 5, 2025. | ||||
| --- | --- | ||||
| 6.3. | Non-executive Directors | ||||
| --- | --- |
As of December 31, 2024 and March 14, 2025, we had seven non-executive directors. The name, position and the end of the term of our non-executive directors and the number of shares of our common stock they respectively owned as of March 14, 2025 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 | |
| Note: | (1) Pursuant to Article 38 of the Company’s Articles of Incorporation,<br>the terms of non-executive directors Seon-joo Kwon, Whajoon Cho, Gyutaeg Oh, Jungsung Yeo, Jaehong Choi, and Sung-Yong Kim have been extended until the annual general<br>meeting of shareholders for fiscal year 2024 on March 26, 2025, as their original terms would have expired before the meeting. | ||||
| --- | --- |
Table of Contents
Appointment of Directors to be proposed at the annual general meeting of shareholders
The following is a list of the non-standing director and non-executive director candidates, as of March 14, 2025, to be proposed to shareholders at the annual general meeting of shareholders for fiscal year 2024. If such proposal is rejected at the upcoming annual general meeting of shareholders, KB Financial Group will disclose such matter through a separate amendment filing. For more information regarding the annual general meeting of shareholders and agenda items, please refer to the Company’s report on Form 6-K furnished to the Securities and Exchange Commission on March 5, 2025.
| Name | Date of Birth | Nominated Position | Expected Date<br>of<br>Appointment |
|---|---|---|---|
| Hwan Ju Lee<br> <br>(New appointment) | October 1964 | Non-standing Director | March 26, 2025 |
| Whajoon Cho<br><br><br>(Re-appointment) | February 1957 | Audit Committee Member and Non-executive Director | March 26, 2025 |
| Jungsung Yeo<br><br><br>(Re-appointment) | April 1960 | Non-executive Director | March 26, 2025 |
| Jaehong Choi<br><br><br>(Re-appointment) | August 1962 | Non-executive Director | March 26, 2025 |
| Sung-Yong Kim<br><br><br>(Re-appointment) | March 1966 | Audit Committee Member and Non-executive Director | March 26, 2025 |
| Eun Young Chah<br> <br>(New appointment) | October 1962 | Audit Committee Member and Non-executive Director | March 26, 2025 |
| Sun Yeop Kim<br> <br>(New appointment) | November 1969 | Audit Committee Member and Non-executive Director | March 26, 2025 |
| 6.4. | Senior Management | ||
| --- | --- |
Members of our senior management as of March 14, 2025 are as follows.
| Name | Date of Birth | Position | Common Shares Owned^(1)^ | End of Term | |
|---|---|---|---|---|---|
| Jae Keun Lee | May 1966 | Senior Executive Vice President and Chief Business Officer of Global | 2,119 | December 31, 2025 | |
| Chang Kwon Lee | November 1965 | Senior Executive Vice President and Chief Digital Officer and Chief IT Officer | 3,010 | December 31, 2025 | |
| Dae Hwan Lim | November 1965 | Executive Vice President and Chief Compliance Officer | 1,793 | December 31, 2025 | |
| Young June Park | November 1969 | Senior Managing Director and Chief Strategy Officer | 845 | December 31, 2025 | |
| Bong Joong Kwon | November 1969 | Senior Managing Director and Head of the IR Division | 3,363 | December 31, 2025 | |
| Hongsun Yum | February 1971 | Senior Managing Director and Chief Risk Management Officer | 1,144 | December 31, 2026 | |
| Hyo Ik Park | January 1970 | Senior Managing Director and Chief Business Officer of Insurance | 1,448 | December 31, 2025 | |
| Shin Dong Jeung | January 1966 | Senior Managing Director and Head of KB Research | 1,056 | December 31, 2025 | |
| Dae Hyun Cha | January 1966 | Senior Managing Director and Chief Officer of Audit Department | 714 | December 31, 2025 | |
| Keoung Nam Kim | August 1967 | Managing Director and Head of the ESG Division | 2,294 | December 31, 2025 | |
| Sang Rok Na | August 1972 | Managing Director and Chief Financial Officer | 1,373 | December 31, 2025 |
Table of Contents
| Name | Date of Birth | Position | Common Shares<br>Owned^(1)^ | End of Term | |
|---|---|---|---|---|---|
| Hyo Sung Jeon | March 1971 | Managing Director and Chief Human Resources Officer | 2,021 | December 31, 2025 | |
| Jin Young Park | September 1972 | Chief Public Relation Officer | 2,589 | December 31, 2025 | |
| Youngsei Park | January 1968 | Chief Consumer Protection Officer | 576 | December 31, 2025 | |
| Young Suh Cho | February 1971 | Head of the AI • Digital Division | 2,000 | December 31, 2025 | |
| Sang Won Oh | December 1967 | Head of the IT Division | 1,024 | December 31, 2025 | |
| Byoung Jip Kim | April 1980 | Head of the Financial AI Center 1 | — | December 31, 2025 | |
| Kyeong Jong Lee | February 1978 | Head of the Financial AI Center 2 | — | December 31, 2025 | |
| Hyun Jung Lee | March 1977 | Head of the Customer Experience Design Center | 125 | December 31, 2025 | |
| Byoung Ha Choi | September 1972 | Head of the Group Architecture Center | 555 | December 31, 2025 | |
| Joo Hyun Kim | November 1970 | Head of the Group Cloud Center | 344 | December 31, 2025 | |
| Myoung Hwa Park | December 1969 | Head of the Planning & Coordination Department | 837 | December 31, 2025 | |
| Note: | (1) The numbers of common shares owned are as of March 14, 2025 and includes<br>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<br>Act. | ||||
| --- | --- |
As of March 14, 2025, the following management also served as senior management at our subsidiaries.
| Name | Subsidiary | Position | Appointment Date |
|---|---|---|---|
| Keoung Nam Kim | Kookmin Bank | Head of the ESG Division | January 2025 |
| Jin Young Park | Kookmin Bank | Managing Director and Head of the Brand & PR Group | January 2024 |
| Youngsei Park | Kookmin Bank | Senior Executive Vice President, Head of the Consumer Protection Group | January 2024 |
| Young Suh Cho | Kookmin Bank | Senior Executive Vice President, Head of the AI • DT Initiative Group | January 2025 |
| Sang Won Oh | Kookmin Bank | Senior Executive Vice President, Head of the Tech Group | January 2024 |
| Byoung Jip Kim | Kookmin Bank | Managing Director and Head of the Financial AI Center 1 | January 2025 |
| Kyeong Jong Lee | Kookmin Bank | Managing Director and Head of the Financial AI Center 2 | January 2025 |
| Hyun Jung Lee | Kookmin Bank | Head of the Customer Experience Design Center | January 2025 |
| Byoung Ha Choi | Kookmin Bank | Head of the Tech Development Division | January 2025 |
| Joo Hyun Kim | Kookmin Bank | Head of the Cloud Platform Department | February 2022 |
| Myoung Hwa Park | Kookmin Bank | Head of the Planning & Coordination Department | January 2025 |
| Young June Park | KB Securities | Non-standing Director | February 2025 |
| Sang Rok Na | KB Insurance | Non-standing Director | February 2025 |
| KB Capital | Non-standing Director | March 2021 |
Table of Contents
| 6.5. | Employees |
|---|
The following table shows information regarding our employees and compensation paid to them as of December 31, 2024.
| (Unit: in millions of Won) | ||||
|---|---|---|---|---|
| Number of<br><br><br>Employees^(1)^ | Average Tenure of Employees^(2)^ | Total Amount of<br><br><br>Compensation^(3)^ | Average Compensation<br><br><br>per Person^(4)^ | |
| 140 | 3 years and 11months<br><br><br>(17 years and 0 months) | 22,571 | 160 | |
| Notes: (1) | Includes all employees as of December 31, 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 December 31, 2024.<br> | |||
| --- | --- | |||
| (4) | Based on the sum of the average monthly compensation of each month from January 1, 2024 to<br>December 31, 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 December 31, 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 | 4,331 | 317 | ||
| 7. | Major Shareholders and Related Party Transactions | |||
| --- | --- | |||
| 7.1. | Major Shareholders | |||
| --- | --- |
The following table presents information regarding holders of 5% or more of our total issued shares based on our shareholder registry as of December 31, 2024, unless specified otherwise.
| (Unit: shares, %) | ||||
|---|---|---|---|---|
| Name | Number of Shares of<br>Common Stock | Percentage of<br>Total Issued Shares^(1)^ | ||
| Korean National Pension Service | 33,095,691 | 8.41 | ||
| The Capital Group Companies, Inc.^(2)^ | 31,763,237 | 8.07 | ||
| JP Morgan Chase Bank, N.A.^(3)^ | 19,948,226 | 5.07 | ||
| BlackRock Fund Advisors^(4)^ | 25,050,939 | 6.02 | ||
| Notes: (1) | Based on 393,528,423 shares of our common stock issued as of December 31, 2024. | |||
| --- | --- | |||
| (2) | The above number of shares and the percentage of total issued shares held by The Capital Group Companies, Inc.<br>are as of December 31, 2024 and are based on disclosure made by The Capital Group Companies, Inc. in a statement of acquisition filing on January 13, 2025. | |||
| --- | --- | |||
| (3) | Depositary under the Company’s ADR program. The voting rights are held by ADR holders.<br> | |||
| --- | --- | |||
| (4) | The above number of shares and the percentage of total issued shares held by BlackRock Fund Advisors are as of<br>February 26, 2021 and are based on disclosure made by BlackRock Fund Advisors in a statement of acquisition filing on March 10, 2021. | |||
| --- | --- |
Table of Contents
| 7.2. | Changes in the Largest Shareholder | |||||
|---|---|---|---|---|---|---|
| (Unit: shares, %) | ||||||
| --- | --- | --- | --- | --- | --- | --- |
| Name of Largest Shareholder | Date of Change in Largest<br>Shareholder/ Date of<br>Change in Number of<br>Shares Owned | Number of<br>Shares of<br>Common Stock^(1)^ | Percentage of<br>Total Issued<br>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 | |||
| Korean National Pension Service | September 30, 2024 | 32,308,082 | 8.21 | |||
| Korean National Pension Service | December 31, 2024 | 33,095,691 | 8.41 | |||
| 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
From April 4, 2023 to August 14, 2024: 403,511,072
After August 14, 2024: 393,528,423
| (3) | Based on disclosure made by the Korean National Pension Service in a statement of acquisition filing on<br>February 7, 2020. |
|---|---|
| (4) | Based on disclosure made by the Korean National Pension Service in a statement of disposal filing on<br>February 4, 2022. |
| --- | --- |
| (5) | Based on disclosure made by the Korean National Pension Service in a statement of disposal filing on<br>November 2, 2022. |
| --- | --- |
Table of Contents
| 7.3. | Employee Stock Ownership Association (As of December 31, 2024) | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| (Unit: shares) | |||||||||||
| --- | --- | --- | |||||||||
| Company Name | Number of Shares of<br>Common Stock Owned | ||||||||||
| KB Financial Group Inc. | 64,847 | ||||||||||
| Kookmin Bank | 6,116,879 | ||||||||||
| KB Securities Co., Ltd. | 65,220 | ||||||||||
| KB Insurance Co., Ltd. | 764,070 | ||||||||||
| KB Kookmin Card Co., Ltd. | 567,883 | ||||||||||
| KB Life Insurance Co., Ltd. | 20,197 | ||||||||||
| KB Asset Management Co., Ltd. | 16,416 | ||||||||||
| KB Capital Co., Ltd. | 125,805 | ||||||||||
| KB Real Estate Trust Co., Ltd. | 25,809 | ||||||||||
| KB Savings Bank Co., Ltd. | 15,121 | ||||||||||
| KB Investment Co., Ltd. | 3,803 | ||||||||||
| KB Data Systems Co., Ltd. | 58,367 | ||||||||||
| KB Credit Information Co., Ltd. | 12,261 | ||||||||||
| KB Fund Partners Co., Ltd. | 23,726 | ||||||||||
| Others^(1)^ | 23,972 | ||||||||||
| Total | 7,904,376 | ||||||||||
| Note: | (1) | Shares of common stock attributable to an account owned by the employee stock ownership association of KB Financial Group. | |||||||||
| --- | --- | --- | |||||||||
| 7.4. | Investments in Affiliated Companies | ||||||||||
| --- | --- | ||||||||||
| (As of December 31, 2024) | (Units: shares, %, millions of Won) | ||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Company Name | Ending Balance | Total assets as<br>of the latest<br>fiscal year | Net income(loss)<br>for the latest<br>fiscal year | ||||||||
| Number of<br>shares owned | Ownership | Book value | |||||||||
| Kookmin Bank | 404,379,116 | 100 | 14,821,721 | 562,887,180 | 3,251,759 | ||||||
| KB Securities Co., Ltd.^^ | 298,620,424 | 100 | 3,342,391 | 63,384,389 | 585,682 | ||||||
| KB Insurance Co., Ltd.^^ | 66,500,000 | 100 | 2,375,430 | 40,776,375 | 839,494 | ||||||
| KB Kookmin Card Co., Ltd. | 92,000,000 | 100 | 1,953,175 | 30,541,628 | 402,715 | ||||||
| KB Life Insurance Co., Ltd.<br><br><br>(Formerly, Prudential Life Insurance) | 16,201,518 | 100 | 2,795,367 | 34,047,554 | 164,272 | ||||||
| KB Asset Management Co., Ltd.^^ | 7,667,550 | 100 | 96,312 | 414,942 | 66,500 | ||||||
| KB Capital Co., Ltd.^^ | 32,175,147 | 100 | 873,811 | 18,115,495 | 222,041 | ||||||
| KB Real Estate Trust Co., Ltd. | 21,616,085 | 100 | 271,553 | 1,113,466 | (113,332 | ) | |||||
| KB Savings Bank Co., Ltd. | 8,001,912 | 100 | 176,813 | 2,575,739 | (11,366 | ) | |||||
| KB Investment Co., Ltd. | 22,525,328 | 100 | 154,910 | 1,529,823 | 4,368 | ||||||
| KB Data Systems Co., Ltd. | 800,000 | 100 | 6,334 | 62,270 | 1,978 | ||||||
| Total | — | — | 26,867,817 | — | — |
Table of Contents
| 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<br>Amount | Issue Date | Interest<br>Rate | Maturity Date | Use of<br>Proceeds |
| KB Securities Co., Ltd. | Subsidiary | No. 1 Private Placement of Capital Securities in Won | 200 | March 31, 2022 | 4.300% | March 31,<br> <br>2052 (may be<br>extended) | Working capital |
| (Unit: in billions of Won) | |||||||
| --- | --- | --- | --- | --- | --- | --- | --- |
| Issuer | Relationship | Type | Issue<br>Amount | Issue Date | Interest<br>Rate | Maturity Date | Use of<br>Proceeds |
| KB Securities Co., Ltd. | Subsidiary | No. 3 Private Placement of Capital Securities in Won | 230 | September 30, 2022 | 5.500% | September 30,<br> <br>2052 (may be<br>extended) | Working capital |
| (Unit: in billions of Won) | |||||||
| --- | --- | --- | --- | --- | --- | --- | --- |
| Issuer | Relationship | Type | Issue<br>Amount | Issue Date | Interest<br>Rate | Maturity Date | Use of<br>Proceeds |
| KB Securities Co., Ltd. | Subsidiary | No. 4 Private Placement of Capital Securities in Won | 100 | May 8, 2023 | 5.350% | May 8,<br> <br>2053 (may be<br>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<br>Amount | Issue Date | Interest<br>Rate | Maturity Date | Use of<br>Proceeds |
| KB Capital Co., Ltd. | Subsidiary | No. 299 Private Placement of Capital Securities in Won | 50 | March 27, 2015 | 6.548%^(1)^ | March 27,<br> <br>2045 (may be<br>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<br>Amount | Issue Date | Interest<br>Rate | Maturity Date | Use of<br>Proceeds |
| KB Capital Co., Ltd.. | Subsidiary | No. 320 Private Placement of Capital Securities in Won | 50 | September 24,<br> <br>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<br>Amount | Issue Date | Interest<br>Rate | Maturity Date | Use of<br>Proceeds |
| KB Capital Co., Ltd. | Subsidiary | No. 343 Private Placement of Capital Securities in Won | 50 | March 29, 2016 | 6.305%^(1)^ | March 29,<br> <br>2046 (may be<br>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<br>Amount | Issue<br>Date | Interest<br>Rate | Maturity Date | Use of<br>Proceeds |
| KB Capital Co., Ltd. | Subsidiary | No. 352 Private Placement of Capital Securities in Won | 50 | June 28, 2016 | 6.466%^(1)^ | June 28,<br> <br>2046 (may be<br>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<br>Amount | Issue Date | Interest<br>Rate | Maturity Date | Use of<br>Proceeds |
| KB Capital Co., Ltd. | Subsidiary | No. 367 Private Placement of Capital Securities in Won | 50 | November 28,<br> <br>2016 | 6.952%^(1)^ | November 28, 2046 (may be extended) | Working capital |
Note: (1) The interest rate has increased from its initial rate due to the non-exercise of the call option.
| (Unit: in billions of Won) | |||||||
|---|---|---|---|---|---|---|---|
| Issuer | Relationship | Type | Issue<br>Amount | Issue Date | Interest<br>Rate | Maturity Date | Use of<br>Proceeds |
| KB Capital Co., Ltd. | Subsidiary | No. 378 Private Placement of Capital Securities in Won | 50 | April 27, 2017 | 7.664%^(1)^ | April 27,<br> <br>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<br>Amount | Issue Date | Interest<br>Rate | Maturity Date | Use of<br>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<br>Amount | Issue Date | Interest<br>Rate | Maturity Date | Use of<br>Proceeds |
| KB Capital Co., Ltd. | Subsidiary | No. 486 Private Placement of Capital Securities in Won | 100 | February 17, 2022 | 4.495% | February 17,<br> <br>2052 (may<br>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<br>Amount | Issue Date | Interest<br>Rate | Maturity Date | Use of<br>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,<br> <br>2054 <br>(may be<br>extended) | Working<br>capital |
Table of Contents
7.5.4. Purchase of subordinated bonds issued by KB Savings Bank Co., Ltd.
| (Unit: in billions of Won) | |||||||
|---|---|---|---|---|---|---|---|
| Issuer | Relationship | Type | Issue<br>Amount | Issue Date | Interest<br>Rate | Maturity Date | Use of<br>Proceeds |
| KB Savings Bank Co., Ltd. | Subsidiary | No. 1 Subordinated Bonds in Won | 70 | June 25, 2021 | 1.600% | June 25, 2031 | Working<br>capital |
7.5.5. Prepayments and Loans to Subsidiaries
| (Unit: in billions of Won) | |||||||
|---|---|---|---|---|---|---|---|
| Name | Relationship | Account | Loan Amount | Current Balance | Credit Offering<br>Date | Interest Rate | Maturity Date |
| KB Investment Co., Ltd. | Subsidiary | Loans^(1)^ | 10 | 10 | July 14, 2017 | 2.653% | July 12, 2025 |
Note: (1) Unsecured credit loans.
| (Unit: in billions of Won) | |||||||
|---|---|---|---|---|---|---|---|
| Name | Relationship | Account | Loan Amount | Current Balance | Credit Offering<br>Date | Interest Rate | Maturity Date |
| KB Investment Co., Ltd. | Subsidiary | Loans^(1)^ | 40 | 40 | July 13, 2018 | 2.653% | July 12, 2025 |
Note: (1) Unsecured credit loans.
| (Unit: in billions of Won) | |||||||
|---|---|---|---|---|---|---|---|
| Name | Relationship | Account | Loan Amount | Current Balance | Credit Offering<br>Date | Interest Rate | Maturity Date |
| KB Investment Co., Ltd. | Subsidiary | Loans^(1)^ | 70 | 70 | March 8, 2019 | 2.694% | March 7, 2025 |
Note: (1) Unsecured credit loans.
| (Unit: in billions of Won) | |||||||
|---|---|---|---|---|---|---|---|
| Name | Relationship | Account | Loan Amount | Current Balance | Credit Offering<br>Date | Interest Rate | Maturity Date |
| KB Investment Co., Ltd. | Subsidiary | Loans^(1)^ | 30 | 30 | March 9, 2020 | 2.694% | March 7, 2025 |
Note: (1) Unsecured credit loans.
| (Unit: in billions of Won) | |||||||
|---|---|---|---|---|---|---|---|
| Name | Relationship | Account | Loan Amount | Current Balance | Credit Offering<br>Date | Interest Rate | Maturity Date |
| KB Investment Co., Ltd. | Subsidiary | Loans^(1)^ | 30 | 30 | July 13, 2020 | 2.653% | July 12, 2025 |
Note: (1) Unsecured credit loans.
Table of Contents
| (Unit: in billions of Won) | |||||||
|---|---|---|---|---|---|---|---|
| Name | Relationship | Account | Loan Amount | Current Balance | Credit<br>Offering Date | Interest Rate | Maturity Date |
| KB Investment Co., Ltd. | Subsidiary | Loans^(1)^ | 70 | 70 | December 20, 2021 | 2.858% | December 19, 2025 |
Note: (1) Unsecured credit loans.
| (Unit: in billions of Won) | |||||||
|---|---|---|---|---|---|---|---|
| Name | Relationship | Account | Loan Amount | Current Balance | Credit Offering<br>Date | Interest Rate | Maturity Date |
| KB Investment Co., Ltd. | Subsidiary | Loans^(1)^ | 60 | 60 | July 13, 2022 | 2.653% | July 12, 2025 |
Note: (1) Unsecured credit loans.
| (Unit: in billions of Won) | |||||||
|---|---|---|---|---|---|---|---|
| Name | Relationship | Account | Loan Amount | Current Balance | Credit Offering<br>Date | Interest Rate | Maturity Date |
| KB Investment Co., Ltd. | Subsidiary | Loans^(1)^ | 50 | 50 | July 13, 2023 | 2.653% | July 12, 2025 |
Note: (1) Unsecured credit loans.
Table of Contents
| 8. | Internal Controls | ||||||
|---|---|---|---|---|---|---|---|
| 8.1. | Management’s Assessment of the Effectiveness of the Internal Accounting Management System | ||||||
| --- | --- | ||||||
| Period | Date of Report | Assessment | Material<br>Deficiencies | Corrective Action<br>Plans | |||
| --- | --- | --- | --- | --- | --- | --- | --- |
| January 1 to<br><br><br>December 31,<br><br><br>2024 | March 4, 2025 | In terms of overall materiality, the internal accounting management system is under effective design and operation. | — | — | |||
| January 1 to<br><br><br>December 31,<br><br><br>2023 | March 5, 2024 | In terms of overall materiality, the internal accounting management system is under effective design and operation. | — | — | |||
| January 1 to<br><br><br>December 31,<br><br><br>2022 | March 2, 2023 | In terms of overall materiality, the internal accounting management system is under effective design and operation. | — | — | |||
| 8.2. | Audit Committee’s Assessment of the Effectiveness of the Internal Accounting Management System | ||||||
| --- | --- | ||||||
| Period | Date of Report | Assessment | Material<br>Deficiencies | Corrective Action<br>Plans | |||
| --- | --- | --- | --- | --- | --- | --- | --- |
| January 1 to<br><br><br>December 31,<br><br><br>2024 | March 4, 2025 | In terms of overall materiality, the internal accounting management system is under effective design and operation. | — | — | |||
| January 1 to<br><br><br>December 31,<br><br><br>2023 | March 5, 2024 | In terms of overall materiality, the internal accounting management system is under effective design and operation. | — | — | |||
| January 1 to<br><br><br>December 31,<br><br><br>2022 | March 2, 2023 | In terms of overall materiality, the internal accounting management system is under effective design and operation. | — | — | |||
| 8.3. | External Auditor’s Audit Opinion (Review Report) on the Effectiveness of the Internal AccountingManagement System | ||||||
| --- | --- | ||||||
| Period | Auditor | Audit or<br>Review | Opinion Type | Issues | Company’s<br>Response Actions | ||
| --- | --- | --- | --- | --- | --- | --- | --- |
| January 1 to<br><br><br>December 31,<br><br><br>2024 | Samil PricewaterhouseCoopers | Audit | Unqualified | — | — | ||
| January 1 to<br><br><br>December 31,<br><br><br>2023 | Samil PricewaterhouseCoopers | Audit | Unqualified | — | — | ||
| January 1 to<br><br><br>December 31,<br><br><br>2022 | KPMG Samjong Accounting Corp. | Audit | Unqualified | — | — |
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: March 14, 2025 | By: /s/ Sang Rok Na | |
| (Signature) | ||
| Name: | Sang Rok Na | |
| Title: | Managing Director and Chief Financial Officer |