Yoon Jong-kyu, KB Financial Group Chairman, Says "Dividend Payout Ratio Reduction Is Temporary... 30% Target Remains"

KB Financial Group Shareholders' Meeting Summary

[Asia Economy Reporter Park Sun-mi] Yoon Jong-kyu, Chairman of KB Financial Group, said that although the dividend payout ratio was temporarily reduced to 20% following the financial authorities' recommendation, the existing stance that the dividend payout ratio should be around 30% remains unchanged.

On the 26th, Chairman Yoon emphasized at the shareholders' meeting held at 10 a.m. that the decision to set the dividend payout ratio at 20% is temporary.

Chairman Yoon stated, "Despite achieving solid performance in a low-growth, low-interest economic environment, we accepted the financial authorities' recommendation to prepare for external uncertainties caused by COVID-19 and to strengthen loss absorption capacity, leading to an exceptional reduction in the dividend payout ratio compared to the previous year. We ask for your understanding for not being able to provide a better level of dividends."

However, Chairman Yoon said that the existing direction to increase the dividend payout ratio has not changed.

He explained, "We expect the COVID-19 situation to stabilize and enter a recovery phase from the second half of the year. It is a consistent belief that the dividend payout ratio should be 30%. We have been continuously increasing it, and we will not stop that progress. We will strive to approach that level as soon as possible."

He added, "Interim dividends and quarterly dividends are already permitted under the articles of incorporation, and we will actively consider them. It is a reality that more shareholders are expecting dividend stocks, and we recognize this. We will also appropriately adjust share buybacks and cancellations in coordination with the financial authorities to protect shareholders' interests."

Meanwhile, at the shareholders' meeting on the same day, the reappointment of five outside directors?Sunwoo Seok-ho, Stewart Solomon, Choi Myung-hee, Jung Gu-hwan, and Kim Kyung-ho?was all approved.

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