KB Financial Issues KRW 433bn Subordinated Debt and Continues Shareholder Returns

Issued KRW 433bn in 14th series subordinated contingent capital securities (43,300,000 shares). Full permanent write-off of principal and interest upon designation as a failing financial institution; interest payments may be suspended, limited, or cancelled.
Post-issuance estimated BIS ratios: Common equity tier 1 ratio 13.82%, Tier 1 ratio 15.33%, Total capital ratio 16.32% (vs. year-end 2025 consolidated: 13.82%, 15.21%, 16.20%; Tier 1 slightly increases).
Board resolved on February 5, 2026 to acquire and cancel KRW 600bn in treasury shares via open market. 2025 annual dividend KRW 298,285mn (KRW 804 per share), quarterly dividends total KRW 1,004,006mn.
Year-end 2025 consolidated NPL ratio 0.99% (KB Kookmin Bank 0.28%). Litigation: 361 cases as defendant (approx. KRW 978.7bn), 123 as plaintiff (approx. KRW 536.1bn). Major: MTS Bank unjust enrichment claim KRW 165.3bn.
Year-end 2025 consolidated ROA 0.75%, ROE 9.93%. Double leverage ratio 107.75% (recommended below 130%). NIM 1.74% (KB Kookmin Bank, 2025). Potential NIM erosion if policy rate cuts.
High reliance on KB Kookmin Bank (contributes 65.5% of net income, 69.6% of dividend income). Risk of asset quality deterioration from real estate PF and household debt. IFRS17 introduces capital volatility for insurance subsidiaries.

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Filing: [Correction of Description] Securities Registration Statement (Debt Securities)
Company: KB Financial Group (105560)
Submission: KB Financial Group Inc.
Receipt: 05-08-2026