KB's Growing Clout

KB to offer innovative and diversified financial services and expand global operation

As the nation's largest bank with innovative financial products and services, Kookmin Bank's total assets were 232 trillion won with some 26 million customers as of the end of last year, more than half of the country's total population.
In addition, the bank has 1,076 individual financial business branches, 102 branches for corporate clients, and 27 private banking centers around the country with a total banking facility network of 1,205 units, like a giant spider web, KB officials said.
At the end of 2005, KB broke the 2 trillion won level in terms of profit for the first time. The bank continued apace, reaching 2.47 trillion won in 2006 and 2.77 trillion won at the end of 2007.
The bank's credit ratings climbed as its profit soared. In March 2007, Standard & Poor', an international credit ratings agency boosted KB's credit rating to 'A+,'the same as the sovereign credit rating for Korea. In June, Fitch, a British credit ratings firm, gave KB 'A+'and in the following month, Moody's, another well-known credit ratings agency, boosted KB's credit rating to 'Aa+3', higher than the sovereign credit rating, making KB the only bank in the country to have the same or higher credit rating than the sovereign rating.
This significant fact, which was confirmed internationally, not only shows that KB is a sound financial institution, but is on the right track for its future operations.
President Kang Chung-won has stressed since coming to KB best international practices at all times. The reform of the organizational culture to achieve BIP led to the reform of organizational minds.
The entire company has worked hard and as a result, KB won the top spots in the category of customer satisfaction in both banking and credit card operations, while at the same time achieving the best operational results.
KB also won the National Customer Satisfaction Index Award from the Korea Productivity Center last year for the second time in a row, which is an immense source of pride for KB officials and staff.
Kang always warned that KB would fail to keep its image as the top bank in the country if it is unable to provide its services more conveniently and effectively than those of rival banks, winning its customers'loyalty. When he first came to KB as its CEO, he set customer satisfaction as the company's top priority with the goal to be the top bank in that area with the dedication of every member of the bank's staff continuously working to upgrade its customer service.
The bank's efforts have paid off and it won the top customer satisfaction award from the Korea Productivity Center for two consecutive years last year and the KCSI award as the top bank in the area of customer service, making KB well-known for its outstanding service to its customers.
KB has been trying to supply quality financial products and services to let the country know that it is not just a bank with large assets and financial market share, but a leading bank in many areas of banking. Its service doesn't end with the convenient service it provides its customers, but the bank helps its customers succeed in their endeavors with its accumulated financial know-how to the extent that it will be confirmed as a 'top partner'for its customers.
KB has also been a leading innovator, creating scores of new financial products, and it was the first bank in the world to introduce the mobile banking system. It was also the first to sell fund products and bancassurance as a bank leading financial reform with pride and tradition.
KB was the first bank to introduce the cyber-branch system, which is installed at its corporate customers'facilities with more than 50 billion won in annual sales. The system facilitates the client firm by having its online systems connected with the bank's systems, virtually becoming a bank branch catering to the client company.
KB now has some 1,410 corporate clients linked with its cyber-branch system including such well-known business firms as Shinsegae Department Store, CJ, Lotte Shopping and Hyundai Development, among others. KB is providing CMS to Korean firms operating in China through a tie-up with Chinese Commerce and Industry Bank. nw

President Kang Chung-won of Kookmin Bank