[3rd Term Virtually Confirmed] What Is Chairman Yoon Jong-kyu's Next Challenge?

Strengthening Position as a 'Leading Financial Group' and Focusing on ESG Management
Expected to Concentrate Efforts on Global Business Expansion and Enhancing Internal Communication

[Asia Economy Reporter Park Sun-mi] Yoon Jong-kyu, chairman of KB Financial Group who succeeded in his third term, is expected to focus his capabilities on solidifying the position of a 'leading financial group,' strengthening environmental, social, and governance (ESG) management, expanding global business, and enhancing internal communication.

At the beginning of the year, Chairman Yoon declared 'L.E.A.D 2020' as the group's management strategy keyword for 2020. He presented four management strategy directions: ▲Strengthening the group's core competitiveness (L) ▲Expanding business areas (E) ▲Realizing a dynamic and creative KB (A) ▲Customer-centered digital innovation (D).

Despite the COVID-19 crisis, KB Financial Group needs to maximize synergy among its affiliates to solidify its position as a leading financial group. Based on the second quarter performance this year, KB Financial surpassed Shinhan Financial Group, which had been in first place, reclaiming the top spot. However, based on the first half of the year, Shinhan Financial still holds first place.

Since Chairman Yoon has included influential companies as financial affiliates through active mergers and acquisitions (M&A), it is expected that he will focus on gathering the capabilities of affiliates to solidify the top position. In this regard, smoothly integrating Prudential Life, recently acquired, into the group to create synergy is an urgent task for Chairman Yoon.

Chairman Yoon Focuses on ESG
Plans to Expand ESG Products, Investments, and Loans from Around 20 Trillion Won to 50 Trillion Won by 2030

ESG management is also anticipated to be a field where Chairman Yoon will actively engage. In March this year, Chairman Yoon emphasized his commitment to ESG management by launching the KB Financial ESG Committee, composed of all internal and external directors (a total of nine members), including himself. Since the ESG Committee sets KB Financial's ESG strategy and manages and supervises its implementation, it serves as a control tower for the group's ESG management, meaning Chairman Yoon will directly oversee ESG strategies.

Currently, KB Financial is implementing the 'KB Green Way 2030' plan to expand ESG products, investments, and loans from around 20 trillion won to a total of 50 trillion won by 2030. In this context, KB Financial recently announced that it will support a total of 10 trillion won by 2025 for eight out of ten representative projects of the 'Korean New Deal' initiative.

Another challenge for Chairman Yoon is to achieve results in expanding the Indonesian market, which serves as a foothold for the New Southern Policy, leveraging overseas financial companies acquired by KB Financial, such as the Indonesian mid-sized bank Bukopin, whose management rights have been secured. Following KB Kookmin Bank's increase of its stake in Bukopin Bank to 67%, KB Kookmin Card decided to provide a payment guarantee worth 300 billion won to 'PT Finansia Multi Finance,' a credit finance company, signaling that the group's New Southern Policy led by Chairman Yoon is gaining momentum.

A Chairman Who Communicates Well
Started the New Year’s First Workday with Communication with Employees
Continues Communication in a Non-Face-to-Face Manner in the COVID-19 Era

Strengthening communication is also expected to be an area Chairman Yoon will continuously pay attention to during his third term. His first action this year was 'communication.' On New Year's Day, he visited the call centers of KB Kookmin Bank and KB Insurance, which are at the forefront of customer contact for non-face-to-face customers, shaking hands with about 800 employees, exchanging New Year's greetings, and expressing gratitude for their hard work.

Recently, reflecting the COVID-19 situation, he has been paying special attention to non-face-to-face communication with the younger generation.

Chairman Yoon actively utilizes the ‘e-Communication Live’ sessions, where he has candid conversations with MZ generation employees (born from the early 1980s to early 2000s) through YouTube live broadcasts. In just the past month, online communication with young employees took place twice. They shared honest experiences and stories about issues such as female employees’ childcare difficulties, foreign language learning, financial management, marriage, and work-life balance, with Chairman Yoon offering advice as a senior. Chairman Yoon intends to lead communication activities that transcend 'management, employees, generations, job roles, and gender' to foster mutual understanding and inclusion, promoting a horizontal and creative corporate culture within the group.