[Virtually Confirmed 3rd Term] Chairman Yoon Jong-gyu's Leadership... How Much Has KB Grown?

Chairman Yoon's Assets Surge from 308 Trillion to 567 Trillion Won During Reappointment Period
Highly Praised for Solidifying Leading Financial Holding Company Position

[Asia Economy Reporter Park Sun-mi] Under the leadership of Chairman Yoon Jong-kyu, KB Financial Group has secured the title of a 'leading financial group' with both quantitative and qualitative growth.

Since Chairman Yoon took office as KB Financial Group chairman in November 2014, the group's asset size has grown rapidly. KB Financial's assets increased by more than 80%, from 308 trillion won at the end of 2014 to 567 trillion won as of the end of the first half of this year. Net income also rose from 1.4 trillion won in 2014 to 1.71 trillion won in the first half of this year. Despite the challenging business environment triggered by the economic downturn and interest rate cuts caused by the spread of COVID-19, stable profit generation was possible thanks to solid loan growth and strengthening of the non-bank sector.

In particular, KB Financial's solidification of its position as the leading financial holding company in the industry under Chairman Yoon's management is highly regarded.

Even amid the ultra-low interest rate environment caused by the spread of COVID-19, KB Financial's net profit for the second quarter of this year was 980 billion won, a 35% increase compared to the same period last year. This significantly exceeded market experts' expectations of around 880 billion won. Surpassing the previous number one, Shinhan Financial Group (873.1 billion won), KB Financial secured its position as the top financial holding company. Having avoided the private equity fund scandals that caused significant losses in the financial industry, such as the Derivative Linked Fund (DLF) and Lime Fund incidents, there is optimism that if the current momentum continues into the second half of the year, KB Financial will maintain its lead over Shinhan in the full-year performance.

The number of affiliates has also increased. Following the acquisitions of Woori Financial (now KB Capital) in 2014, LIG Insurance (now KB Insurance) in 2015, Hyundai Securities (now KB Securities) in 2016, KB Financial acquired Prudential Life Insurance this year, increasing the number of group affiliates from 11 in 2014 to 13 currently.

Financial status of KB Financial Group subsidiaries as of the end of the first half of this year.

Back in 2014, the only group affiliates with assets exceeding 10 trillion won were KB Kookmin Bank (275.45 trillion won) and KB Kookmin Card (15.88 trillion won). However, as of the end of the first half of this year, there are five such affiliates: KB Kookmin Bank (425.31 trillion won), KB Securities (56.6 trillion won), KB Insurance (37.67 trillion won), KB Kookmin Card (23.85 trillion won), and KB Capital (12.14 trillion won). Additionally, the recently acquired Prudential Life Insurance has assets exceeding 20 trillion won, bringing the total number of affiliates with assets over 10 trillion won to six.

Globalization is another achievement that Chairman Yoon can highlight.

Last month, KB Kookmin Bank finalized the acquisition of a 67% stake in Bank Bukopin, a mid-sized bank in Indonesia. The investment in Bank Bukopin began in July 2018 with a 22% stake, followed by an additional 11.9% acquired through participation in a rights offering last month, and a 33.1% stake obtained this month through a third-party allotment, completing the total 67% stake acquisition.

Earlier in April this year, KB Financial acquired Prasac Microfinance Institution, a Cambodian microfinance institution, for 730 billion won (70% stake), incorporating it as a subsidiary. With KB Kookmin Card's expansion into Thailand, KB Financial's global asset size has more than tripled, growing from 4.558 billion USD in 2014 to 16.773 billion USD as of the first half of this year.

This content was produced with the assistance of AI translation services.