KB Financial Group Inc., Korea's largest banking group, is doing all it can to position itself for an upcoming bid for KDB Daewoo Securities Co., the country's second-largest brokerage. The group is eying becoming the Korean version of Merrill Lynch BoA in the United States.
The group launched a data room and task force for the financial analysis of the securities firm and encouraged staff to attend “explanation sessions” on Nov. 19 and Nov. 25.
Chairman Yoon Jong-kyoo of the financial group is very serious about taking over the securities firm. He appears to feel that the financial group should benchmark the BoA Merrill Lynch model for its future development by taking over the securities firm.
Since his arrival last November, Yoon has stressed the expansion of multi-function branches, giving top priority to the investment banking of KB Kookmin Bank, especially to deal with modest-income households, not just high-incomes families.
KB Financial Group wants to model its operations after BoA Merrill Lynch, following the Bank of America’s takeover of the U.S. securities and investment firm in 2008. BoA expanded its wealth management sector from 10 percent to 20 percent of its total operations in terms of assets following the takeover of the securities and investment firm.
A KB Financial official said the group would have large sway in the insurance market if it takes over KDB Daewoo Securities, as it already has KB Non-Life Insurance in operation, giving it the advantage of economies of scale.
KB Financial Group came into being with the establishment of KB Financial Holding Incorporated on Sept. 29, 2008, made possible by the comprehensive transfer of the stocks of major subsidiaries. As of June 2015, the Group was Korea’s largest leading provider of a comprehensive range of financial services, complete with total assets amounting to 431.7 trillion won; and with the farthest-ranging customer basis and network of branches in Korea. KB Financial Holding’s subsidiaries located in Korea include KB Kookmin Bank; KB Insurance; KB Kookmin Card; KB Investment and Securities; KB Life Insurance: KB Asset Management; KB Capital; KB Savings Bank; KB Real Estate Trust; KB Investment; KB Credit Information; and KB Data systems. The Group’s subsidiaries overseas include Kookmin Bank Hong Kong Limited in Hong Kong; Kookmin Bank International Limited in the United Kingdom; Kookmin Bank Cambodia PLC; and Kookmin Bank China Limited.
Dr. Jong Kyoo Yoon was elected as Chairman and CEO of KB Financial Group and President and CEO of Kookmin Bank in 2014, in appreciation of his extensive experience and in-depth knowledge of financial industry. His career is complemented by outstanding capability and dedicated service evidenced as Deputy President and CFO of KB Financial Group (2010-2013) and CFO and SEVP of Kookmin Bank, the Group’s flagship subsidiary (2002-2004).
During his tenure as Deputy President and CFO of KB Financial Group from 2010 to 2013, Dr. Yoon spearheaded Group’s financial planning and management, and led profitability improvement. Dr. Yoon demonstrated strong execution capability and management judgment, which had been evidenced through his achievements as CFO such as successful adoption of K-IFRS and involvement in formulating strategic and operational directions related to the spin-off of credit card business from Kookmin Bank and the merger between KB Investment & Securities Co., Ltd. and KB Futures Co., Ltd.
Dr. Yoon was also highly regarded for his contribution to profitability improvement, including NIM increase, led by loan pricing system enhancement and funding cost reduction, and cost efficiency improvement.
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