[K Population Strategy] KB Kookmin Bank Leading the Female Wave in the Financial Sector

42.9%.

This is the proportion of female outside directors at KB Financial Group. This figure far exceeds the 23.7% female outside director ratio among the top 100 domestic companies as of last year and surpasses the European Union (EU) female outside director ratio of 40%.

KB Financial Group currently has three female outside directors, the first among domestic financial holding companies. Following the appointment of two female outside directors in 2020, the first among financial companies, an additional female outside director was appointed in March last year. In March this year, a female outside director was appointed as the chairperson of the board, leading what is being called a female wave in the financial sector.

KB Kookmin Bank Leading the Female Wave in Finance... Women Take Over 'Corporate Finance,' Traditionally Male-Dominated

The glass ceiling in the financial sector has been a long-standing issue. The perception has been that male employees are assigned to high-paying, specialized roles, while female employees are mainly placed in teller positions. Female employees were excluded from job placements that could develop expertise, blocking their path to executive roles. However, the atmosphere in the financial sector has changed, with KB Kookmin Bank at the center of this shift.

According to KB Kookmin Bank's 2023 business report, as of December 31, 2023, the number of female regular employees was 7,928, about 1,700 more than the 6,244 male employees. More than half of the total employees are women.

With the majority of employees being female, a female wave is also sweeping through corporate finance, which had traditionally been dominated by male employees within the bank. The proportion of female corporate finance team leaders at KB Kookmin Bank increased from 15.2% at the end of 2023 to 19.1%, a 3.9 percentage point rise. During the same period, the proportion of female corporate finance team members also rose slightly from 55.9% to 56.3%, a 0.4 percentage point increase. KB Kookmin Bank aims to achieve a 30% female team leader ratio in corporate finance by 2027. For female team members, the goal is to exceed 50% by 2027, a target already surpassed in 2022, maintaining a steady rate above 50%.

KB Financial Group is the only domestic commercial bank to disclose such data to promote gender competency diversity.

First in Finance to Surpass 100 Million KRW Average Annual Salary for Female Employees... Gender Wage Gap Narrows

As the number of female employees and female managers increases, the wage gap between male and female employees is also narrowing.

According to KB Kookmin Bank's 2022 and 2023 business reports, the average annual salary per female employee exceeded 100 million KRW (101 million KRW) for the first time in 2022. Among the four major banks (KB Kookmin, Shinhan, Hana, Woori), KB Kookmin Bank and Hana Bank (102 million KRW) were the first to surpass 100 million KRW average annual salary for female employees in 2022. In 2023, KB Kookmin Bank's female employees recorded an average annual salary of 106 million KRW. Male employees at KB Kookmin Bank had already surpassed 100 million KRW in average annual salary as early as 2012.

This increase is attributed to longer tenure among female employees, supported by enhanced welfare benefits such as parental leave, workplace daycare centers, and flexible working hours.

Not only has the absolute amount increased, but the wage gap with male employees has also decreased. Compared to 2019, the average annual salary ratio of male to female employees at KB Kookmin Bank dropped from 1.44 times to 1.34 times in 2022.

'Rehire-Conditional Parental Leave' First Introduced by KB Kookmin... Spreading Across the Financial Sector

KB Financial Group also operates the 'WE (Woman's Empowerment) STAR' system to nurture female talent and leaders. The 'WE STAR' system aims for 'prejudice-free talent development' and consists of four areas: System, Talent, Alignment, and Relationship.

Under the WE STAR system, KB Kookmin Bank offers the 'KB WE (Women of Excellence)' program, presenting desirable role models for female leadership and enhancing female talent capabilities through group coaching and individual assignments. The newly established 'Beyond WE Workshop' provides opportunities for female leaders who have completed the KB WE program to share best practices and network. In 2023, 26 participants joined the KB WE program and 25 joined the Beyond WE Workshop, totaling 51 graduates. Cumulatively, 188 female leaders have completed the KB WE program.

KB Kookmin Bank is not only running programs to nurture female leaders but also leading efforts to establish systems that support women in balancing work and family without worrying about career interruptions.

The most notable system is the 'rehire-conditional parental leave.' In December 2023, KB Kookmin Bank became the first in the financial industry to introduce this system. Employees can take up to five years of parental leave by combining two years of parental leave with three years of childcare leave. Upon return, their rank and base salary grade are maintained, alleviating concerns about career breaks and wage reductions for female employees. From the company's perspective, it is a 'win-win case' as it retains skilled talent. Since the system's implementation earlier this year, a total of 45 employees have resigned under the rehire condition.

Following KB Kookmin Bank's pioneering implementation of the rehire-conditional parental leave system, Woori Bank also began implementing it in June this year, spreading the practice throughout the financial sector.

Additionally, KB Kookmin Bank encourages male employees' participation in childbirth and childcare by extending spousal paternity leave. In June, KB Kookmin Bank's labor and management agreed to expand spousal paternity leave and promote the use of reduced working hours during childcare periods. Notably, the spousal paternity leave period was extended from 10 days within 90 days of childbirth to 20 days. Furthermore, the eligibility for reduced working hours during childcare was relaxed from 'having children aged 9 or younger or in third grade or below in elementary school' to 'children aged 12 or younger or in sixth grade or below in elementary school,' broadening the scope and reducing childcare burdens for employees.

A KB Financial Group official stated, "In the past five years, the number of male employees taking parental leave has increased, changing perceptions about male parental leave."