KB Financial Submits Accountability Structure... Strengthening Internal Controls

KB Financial Group and KB Kookmin Bank announced on the 30th that they will submit a Responsibility Structure Chart to the Financial Supervisory Service and participate in the pilot operation in accordance with the "Act on the Governance of Financial Companies (Governance Act)."

The Responsibility Structure Chart is a document that allocates internal control responsibilities according to the duties of financial company executives, clarifying accountability. It is designed to predefine the scope and content of internal controls that employees must directly take responsibility for, thereby strengthening the overall internal control management of financial companies.

Earlier this year, KB Financial formed an "Internal Control System Improvement TFT" and, through consulting related to the Responsibility Structure Chart, prepared a chart reflecting the contents of the "Act on the Governance of Financial Companies" and its subordinate regulations.

Additionally, KB Financial established a "Responsibility Management System" to continuously register and manage inspection activities and improvement measures according to the "Internal Control Work Manual." At the same time, a "Branch Manager Internal Control Work Manual" will be operated to assist branch managers in effective internal control management activities. Through this, all employees can effectively inspect and report on internal control management activities.

KB Financial plans to use the introduction of the Responsibility Structure Chart as a stepping stone to strengthen the internal control system across the entire group. All affiliates plan to prepare the Responsibility Structure Chart earlier than the implementation date stipulated by the relevant law and conduct their own pilot operations. In particular, affiliates not obligated to prepare the Responsibility Structure Chart will also operate their own charts to enhance the group's overall internal control capabilities.

Yang Jong-hee, Chairman of KB Financial Group, said, "Operating the Responsibility Structure Chart is a fundamental task for employees themselves and for customer protection, and it is an internal control device that supports the essential operations of financial companies." He added, "Through faithful operation of the Responsibility Structure Chart, KB Financial will establish a basic system to prevent financial accidents and do its best to secure customer trust."

Meanwhile, to strengthen internal control at the group level, KB Financial plans to establish an Internal Control Committee as a subcommittee under the board of directors. KB Kookmin Bank established and is operating a dedicated responsibility management team under the Compliance Officer in September to establish a responsible internal control system.