Profile: KB Financial Group Inc (KB.N)
2 Dec 2016
KB Financial Group Inc., incorporated on October 29, 2008, is a financial holding company in Korea. The Company's operations include Kookmin Bank, a commercial bank in Korea. The Company's subsidiaries engage in a range of businesses, including commercial banking, credit cards, asset management, life insurance, capital markets activities and international banking. The Company operates through six business segments: retail banking operations, corporate banking operations, other banking operations, credit card operations, investment and securities operations, and life insurance operations. The Company provides credit and related financial services to individuals and small- and medium-sized enterprises and, to a lesser extent, to large corporate customers. It provides a range of deposit products and related services to both individuals and enterprises of all sizes. Through its capital markets operations, the Company invests and trades in debt and equity securities and, to a lesser extent, engages in derivatives and asset securitization transactions and makes call loans.
The Company makes call loans and borrow call money in the short-term money market. Its principal investment banking services include project finance and financial advisory services for social overhead capital projects such as highway, port, power, water and sewage projects; financing and financial advisory services for real estate development projects; structured finance, and financing for mergers and acquisitions. It is engaged in various international banking activities, including foreign exchange services and derivatives dealing, import and export-related services, offshore lending, syndicated loans and foreign currency securities investment. The Company also raises foreign currency funds through its international banking operations. It provides trust account management services for both specified money trusts and unspecified money trusts. It also offers property trust management services. Through KB Asset Management, the Company offers investment trust products to customers and manages the funds invested by them in investment trusts. It provides consumer finance services through KB Capital Co., Ltd. Its Internet banking services include basic banking services, including fund transfers, balance and transaction inquiries, pre-set automatic transfers, product inquiries, online bill payments and foreign exchange services; investment services, including opening deposit accounts and investing in funds; processing of loan applications; electronic certification services, and wealth management and advisory services, including financial planning and real estate information services. It also offers a range of phone banking services, including inter-account fund transfers, balance and transaction inquiries, customer service inquiries and bill payments. It also provides cash management services, which include automatic transfers, connection services to other financial institutions, real-time firm banking, automatic fund concentration and transmittal of trading information. The Company has a combined banking network of approximately 1,130 branches.
Retail Banking Operations
The retail banking operations segment consists of retail banking services provided by Kookmin Bank. Its retail banking activities consist of lending and deposit-taking. Its retail loans consist of mortgage loans and other consumer loans. It also provides overdraft loans in connection with home equity loans. Other consumer loans are loans made to customers for any purpose, other than mortgage and home equity loans, which include overdraft loans. The Company offers various deposit products, such as demand deposits, time deposits, certificates of deposit and foreign currency deposits. The Company also offers savings deposits for housing subscription.
Corporate Banking Operations
The corporate banking operations consist of corporate banking services provided by Kookmin Bank. The Company lends to and takes deposits from small-and medium-sized enterprises, and to a lesser extent, corporate customers. The Company's corporate deposit products include demand deposits that have no restrictions on deposits or withdrawals and deposits from which withdrawals are restricted for a period of time. The Company also offers installment savings deposits, certificates of deposit and repurchase instruments. It also offers interest rates on deposit products depending upon the rate of return on its income-earning assets, average funding costs and interest rates offered by other commercial banks. The corporate banking includes small- and medium-sized enterprise banking and large corporate loans.
For small-and medium-sized enterprise customers and corporate customers, the Company offers loan products, such as working capital loans and facilities loans. Working capital loans are provided to finance working capital requirements and include notes discounted and trade financing. Facilities loans are provided to finance the purchase of equipment and the establishment of manufacturing assembly plants. The Company also offers mortgage loans to home builders or developers building or selling single- or multi-family housing units, principally apartment buildings.
Other Banking Operations
The other banking operations include Kookmin Bank's banking operations other than retail and corporate banking operations, including treasury activities and back office administrative operations. The other banking activities also include trading activities in securities and derivatives, funding and other supporting activities.
Credit Card Operations
The credit card operations segment consists of credit card activities conducted by KB Kookmin Card Co., Ltd., a subsidiary of the Company. The Company issues credit cards under the KB Kookmin Card brand. The Company has approximately 9.2 million credit cardholders. The Company also issues check cards.
Investment and Securities Operations
The investment and securities operations consist of securities brokerage, investment banking, securities investment and trading and other capital markets services. The investment and securities operations are conducted by KB Investment & Securities Co., Ltd., a subsidiary of the Company. Its trading and investment portfolios consist primarily of Korean treasury securities and debt securities issued by Korean government agencies, local governments or certain government-invested enterprises and debt securities issued by financial institutions. Its trading portfolio also includes derivative-linked securities, the underlying assets of which were linked to, among other things, interest rates, exchange rates, stock price indices or credit risks. Its securities brokerage activities include brokerage services relating to stocks, futures, options and debt instruments.
Life Insurance Operations
The life insurance segment consists of life insurance and wealth management services. Through KB Life Insurance Co., Ltd., the Company offers a range of individual and group life insurance products, including annuities, savings insurance, variable life insurance, whole life insurance and term life insurance, as well as health insurance.
The Company competes with Hana Financial Group Inc. and Woori Bank.
KB Financial Group Inc
84, Namdaemun-Ro, Jung-Gu