KB Financial Group Launches Productive Finance Council... Dedicated Teams to Be Established at Each Subsidiary

Council to Launch on September 30, Chaired by Kim Sunghyun of KB Securities
Strategic Plans and Specific Action Roadmap to Be Established
Portfolio to Be Restructured by Reducing Reliance on Real Estate-Backed Lending

KB Financial Group will launch the “Productive Finance Council,” which will include the participation of executives from its major subsidiaries, on September 30. The group also plans to establish dedicated organizations for productive finance within each subsidiary, including banking, securities, and asset management. This move is interpreted as an effort to consolidate group-wide capabilities in response to the government’s call for the banking sector to shift its business model from real estate-backed lending to productive finance.

On September 25, KB Financial Group announced that it has established a “Growth Engine Framework” to provide comprehensive support for expanding productive finance.

Recognizing that redirecting capital flows into productive sectors is the essential role of finance, KB Financial Group will implement an execution system based on three pillars: forming a group-level executive council, establishing dedicated organizations, and generating tangible results. Through these measures, the group aims to actively support industries that can enhance the nation’s economic value, such as renewable energy, advanced strategic industries, and innovative companies.

The “Productive Finance Council” will include key subsidiary CEOs such as Kim Sunghyun of KB Securities, Kim Youngsung of KB Asset Management, and Yoon Beomryeol of KB Investment, as well as executives from corporate finance, investment banking, asset management, strategy, finance, risk management, human resources, research institutes, and research centers.

The council will be chaired by Kim Sunghyun, who led the group’s Corporate and Investment Banking (CIB) division from 2020 to 2023 and has played a key role in driving KB Financial Group’s CIB business.

Through the council, KB Financial Group plans to establish group-wide strategies for productive finance, discuss specific action plans for each subsidiary, improve the group’s corporate and investment banking business structure, and address issues and challenges related to expanding productive finance. These efforts are aimed at providing multifaceted financial support for future strategic industries at the group level.

Additionally, KB Kookmin Bank, KB Securities, and other subsidiaries will establish dedicated organizations to support the expansion of productive finance and will enhance their internal systems and organizational structures.

Specifically, KB Kookmin Bank will create a tentatively named “Advanced Strategic Industry Review Unit” and a “Growth Finance Promotion Unit” to oversee reviews and support for productive finance in advanced strategic industries. KB Securities will strengthen its research organization to comprehensively study relevant industries and companies, while KB Asset Management plans to launch a management team specialized in advanced strategic industries.

In the long term, the group intends to restructure its portfolio by reducing reliance on real estate-backed lending and expanding productive finance. By the end of this year, the real estate finance business units within subsidiaries will be downsized, while corporate and infrastructure finance organizations will be expanded. A KB Kookmin Bank representative stated, “We will innovate our corporate finance business model by expanding proactive financial support, preferential interest rates, and differentiated services for high value-added future industries and promising companies,” adding, “We will gradually transition to a system that supports future growth engines.”

Furthermore, KB Financial Group plans to achieve tangible results in supplying venture capital and investing in new growth industries to secure national growth engines and lead the renewable energy market.

A KB Financial Group representative said, “KB Financial Group will continue to improve its group organizational structure and overall systems to faithfully fulfill the fundamental role of finance in enhancing social value,” adding, “We will leverage the full strength of the group to take the lead in providing financial support for advanced strategic industries and renewable energy, thereby expanding the nation’s future growth engines.”

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