KB Financial Group invited 106 outstanding employees of its five affiliates (KB Bank, KB Securities, KB Insurance, KB Card and KB Capital) from 14 countries to the Global Network Outstanding Employee Invitation Event in Korea. The event ran from June 19 to 23 to.
The Global Network Outstanding Employee Invitation Event is held annually to instill the pride of foreign employees working in the five affiliates, enhance their love of their workplaces, increase their understanding of KB Financial Group’s global strategies and share its core values.
This year, the invited employees attended a town hall meeting with the chairman of the financial group, meetings hosted by affiliates, Korean cultural experience programs, and tried each affiliate's digital platforms, and participated in training programs on key areas such as compliance and risk management.
In particular, the employees discussed various topics such as KB Financial Group's management strategies and competitiveness in the global sector, how to respond to a digital transformation and changes in the financial environment, and how to strengthen employees' capabilities in the town hall meeting with the chairman on June 22.
“KB Financial Group has been able to sharpen its competitiveness in the global market thanks to all of you who have expertise in your respective areas and are doing everything that you can for your workplaces,” Chairman Yoon Jong-kyu said.
“We will continue to invest and support you at the group level so that you will be able to attain your goals and live out your dreams.”
Launch of Financial Support Program for Rainy Season Damage
KB Financial Group announced on June 29 that it will run a financial support program to help customers recover quickly from damage caused by torrential rains, typhoons, and floods during the rainy season.
KB Kookmin Bank will provide special loans within the range of damage amounts. As for personal loans, up to 20 million won will be provided for living stabilization.
Corporate loans for the self-employed, small and medium-sized enterprises and others will be provided with special low interest rates of up to 1.0 percentage points while up to 500 million won will be provided as business operation loans and facility loans will be given to help restore damaged facilities.
KB Insurance will suspend premium payments without interest for long-term insurance customers. KB Card will suspend payment for credit card use for up to six months.
Repayment of long-term credit card loans can be suspended by changing the repayment periods or changing the terms.
Customers eligible for the financial support programs of KB Bank, KB Insurance, and KB Kookmin Card who suffered disaster damage due to heavy rainfall during the rainy season can receive financial support by submitting a certificate of damage issued by their local administrative offices among others.
Publication of Jeonse System Report
KB Financial Group released a report titled “Structural Risks of the ‘Jeonse’ System and Policy Recommendations” on June 18. Jeonse is a long-term rent with lump-sum deposit in Korea.
The report pointed out problems in the Jeonse system and proposes systemic improvements.
The report found out four structural risks of the Jeonse system — the phenomenon of the reverse Jeonse phenomenon in which a Jeonse deposit accounts for a large proportion of home purchase funds, resulting in rental deposits being higher than home prices when the housing market declines the possibility of capital-free gap investment, in which a landlord can purchase a home with only a rental deposit because a Jeonse contract can be signed at the same time as a home purchase contract tenants being exposed to the risk of non-return of Jeonse deposits from the beginning of their Jeonse contracts as they cannot check whether their landlords are in arrears with taxes or have good credit ratings and Jeonse loans for housing stability actually increasing Jeonse prices and becoming a means of gap investment, which fuels housing market price volatility.
As for improvement measures, the report suggests improving the financial system and strengthening guarantee insurance related to the Jeonse system, providing landlords’ credit information and expanding companies’ house lease business.