KB Financial Union Recommends Outside Director for "Bukopin Risk Management"

Photo by KB Financial Group Labor Union

[Asia Economy Reporter Bu Aeri] On the 30th, the KB Financial Union announced that it has submitted a shareholder proposal and proxy statement recommending Mr. Im Kyung-jong as an outside director candidate.

Candidate Im worked at the Export-Import Bank of Korea for 33 years and served as the head of the bank's Indonesia finance division. He has six years of experience working locally in Indonesia.

The union stated, "With nearly 2 trillion KRW invested in Bukopin Bank and accumulated losses already reaching 700 billion KRW, unprecedented failures in overseas investments are repeating," adding, "During this process, the KB Financial Board of Directors unanimously approved all five investment agenda items without a single dissenting vote." The union claims that outside directors lacking expertise and independence continue to be elected, causing adverse effects.

From 2017 to 2022, the union put forward outside director candidates five times through union recommendations or employee stock ownership associations, but each time faced rejection.

At this shareholders' meeting, the KB Financial Union plans to push for amendments to the articles of incorporation to prevent 'parachute appointments' along with recommending outside director candidates.

Regarding this, a KB Financial official said, "In the case of KB Bukopin Bank, we are pursuing a long-term strategy of acquiring a bad bank and converting it into a good bank, so it cannot be seen as a failed overseas investment," adding, "Although it will take some time, we are accelerating efforts to transform it into a sound bank through capital injection, strengthen digital competitiveness, and recover business capabilities."