KB Kookmin Bank Begins Preparing Responsibility Structure... Establishes Internal Control Personnel Organization

KB Kookmin Bank announced on the 17th that it has begun preparing a responsibility structure for management in response to the revised "Act on the Governance of Financial Companies (Governance Act)" scheduled to be implemented in July.

As stock-linked securities (ELS) based on the Hong Kong H-Index are expected to incur losses amounting to trillions of won in the first half of this year alone, financial authorities have begun on-site inspections targeting major distributors. The photo shows KB Kookmin Bank in Yeouido, Seoul, on the 8th. Photo by Jinhyung Kang aymsdream@

According to the revised Governance Act, banks must prepare a responsibility structure by December this year, obtain approval from the board of directors, and submit it to the Financial Services Commission. The responsibility structure must assign management the obligation to implement internal control measures and clearly specify the board of directors' role in internal control.

Accordingly, KB Kookmin Bank formed an "Internal Control System Improvement Task Force (TFT)" consisting of Deloitte Anjin Accounting Corporation and all headquarters departments, and officially began preparing the responsibility structure by holding a briefing session for department heads on the 15th.

The main tasks include drafting and managing the responsibility structure, designing a system for implementation monitoring, and strengthening executive qualification requirements. Through this, KB Kookmin Bank plans to enhance the effectiveness of internal control activities and establish a culture of voluntary compliance with internal controls.

Additionally, in January this year, KB Kookmin Bank established a dedicated internal control personnel organization under the Compliance Promotion Department. A total of 26 dedicated internal control personnel, including branch deputy managers and team leaders, were assigned?one each in 13 regional groups nationwide.

The dedicated internal control personnel prevent incidents through internal control inspections at sales branches within their jurisdictional regional groups and carry out financial consumer protection activities. They plan to establish a field-oriented internal control system by understanding the actual status of internal controls at sales sites and conducting regular inspections. Furthermore, they will conduct internal control training to enhance employees' ethical awareness while touring the branches.

Lee Sang-won, Chief Compliance Officer, said, “The preparation of the responsibility structure will bring about a change in awareness among management and employees themselves as ‘subjects of internal control’ and contribute to strengthening internal controls. In addition, by establishing a dedicated internal control personnel organization and expanding compliance monitoring personnel in accordance with the ‘Domestic Bank Internal Control Innovation Plan,’ KB Kookmin Bank will strive to become a model case of an effective, field-centered internal control system.”