UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 6-K

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 OR 15d-16

UNDER THE SECURITIES EXCHANGE ACT OF 1934

For the month of November 2016

Commission File Number: 000-53445

KB Financial Group Inc.

(Translation of registrant’s name into English)

84, Namdaemoon-ro, Jung-gu, Seoul 04534, Korea

(Address of principal executive office)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

Form 20-F  x            Form 40-F  ¨

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):  ¨

Note: Regulation S-T Rule 101(b)(1) only permits the submission in paper of a Form 6-K if submitted solely to provide an attached annual report to security holders.

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):  ¨

Note: Regulation S-T Rule 101(b)(7) only permits the submission in paper of a Form 6-K if submitted to furnish a report or other document that the registrant foreign private issuer must furnish and make public under the laws of the jurisdiction in which the registrant is incorporated, domiciled or legally organized (the registrant’s “home country”), or under the rules of the home country exchange on which the registrant’s securities are traded, as long as the report or other document is not a press release, is not required to be and has not been distributed to the registrant’s security holders, and, if discussing a material event, has already been the subject of a Form 6-K submission or other Commission filing on EDGAR.

Index

2. Exhibit 99.1 KB Financial Group Review Report for the Third Quarter of 2016 (Consolidated)

3. Exhibit 99.2 KB Financial Group Review Report for the Third Quarter of 2016 (Separate)

2

TABLE OF CONTENTS

1.	Introduction to the Company	5
1.1.	Business Purpose	5
1.2.	History	5
1.3.	Overview of the Business Group	7
1.4.	Capital Structure	8
1.5.	Dividends	9
2.	Business	10
2.1.	Results of Operations	10
2.2.	Sources and Uses of Funds	11
2.3.	Other Information to Consider in Making an Investment Decision	13
3.	Financial Information	15
3.1.	Consolidated Condensed Financial Information	15
3.2.	Separate Condensed Financial Information	17
3.3.	Other Selected Financial Data	19
3.4.	Other Financial Information	22
4.	Independent Public Accountants	23
4.1.	Audit/ Review Services	23
4.2.	Public Company Accounting Oversight Board (“PCAOB”) Audit Services	23
5.	Corporate Governance and Affiliated Companies	24
5.1.	Board of Directors & Committees under the Board	24
5.2.	Audit Committee	24
5.3.	Compensation to Directors	24
5.4.	Affiliated Companies	25
6.	Directors, Senior Management and Employees	27
6.1.	Executive Directors	27
6.2.	Non-standing Directors	27
6.3.	Non-executive Directors	27
6.4.	Senior Management	28
6.5.	Employees	29
7.	Major Shareholders and Related Party Transactions	30
7.1.	Major Shareholders	30
7.2.	Changes in the Largest Shareholder	30
7.3.	Employee Stock Ownership Association	31
7.4.	Investments in Certain Affiliated Companies	31
7.5.	Related Party Transactions	32

3

Summary of the 2016 Third Quarter Business Report

On November 14, 2016, KB Financial Group Inc. (“KB Financial Group”) filed its business report for the third quarter of 2016 (the “Business Report”) with the Financial Services Commission of Korea and the Korea Exchange. This is a summary of the Business Report translated into English.

Except where indicated otherwise, financial information contained in this summary (and in the attached review report) have been prepared in accordance with the Korean equivalent of International Financial Reporting Standards (“K-IFRS”), which differ in certain important respects from generally accepted accounting principles in the United States.

All references to “KB Financial Group,” “we,” “us” or the “Company” are to KB Financial Group and, unless the context requires otherwise, its subsidiaries. In addition, all references to “Won” or “KRW” in this document are to the currency of the Republic of Korea.

4

1. Introduction to the Company

1.1. Business Purpose

KB Financial Group is a financial holding company that was established in September 2008. Its main business purpose is to hold shares in companies that are engaged in financial or related services, as well as govern and manage such companies. Its consolidated subsidiaries are primarily engaged in the banking business, as well as the credit card business, the financial investment business, the insurance business and other related businesses.

1.2. History

• September 26, 2008

Obtained final approval from the Financial Services Commission to establish a financial holding company

• September 29, 2008

Establishment of the Company through a comprehensive stock transfer and listing on the New York Stock Exchange

• October 10, 2008

Listing on the Korea Exchange

• October 20, 2008

The largest shareholder of the Company changed from the Korean National Pension Service to ING Bank N.V.

• October 31, 2008

The largest shareholder of the Company changed from ING Bank N.V. to the Korean National Pension Service

• May 4, 2009

Added Kookmin Bank Cambodia PLC as a second-tier subsidiary

• June 22, 2009

Added KB Life Insurance Co., Ltd., formerly a second-tier subsidiary, as a first-tier subsidiary

• September 28, 2009

Added Burrill-KB Life Sciences Fund as a second-tier subsidiary

• December 1, 2009

Added KB-Glenwood Private Equity Fund No.1 as a second-tier subsidiary

• January 22, 2010

The largest shareholder of the Company changed from the Korean National Pension Service to ING Bank N.V.

• July 6, 2010

Added KBIC No.3 PEF as a second-tier subsidiary

• December 13, 2010

Added KoFC KBIC Frontier Champ 2010-5 PEF as a second-tier subsidiary

5

• March 2, 2011

Added KB Kookmin Card Co., Ltd. as a first-tier subsidiary

• March 14, 2011

KB Futures Co., Ltd. was merged into KB Investment & Securities Co., Ltd.

• July 8, 2011

The largest shareholder of the Company changed from ING Bank N.V. to the Korean National Pension Service

• November 12, 2011

Closed KB Investment & Securities Hong Kong Ltd.

• January 13, 2012

Added KB Savings Bank Co., Ltd. as a first-tier subsidiary

• May 11, 2012

Added KoFC POSCO HANWHA KB Shared Growth No. 2. Private Equity Fund as a second-tier subsidiary

• June 8, 2012

Liquidated Burrill-KB Life Sciences Fund Ltd.

• July 2, 2012

Added KoFC Value-up Private Equity Fund as a second-tier subsidiary

• October 10, 2012

Added Kookmin Bank (China) Ltd. as a second-tier subsidiary

• June 20, 2013

Acquired the remaining shares of KB Life Insurance Co., Ltd., which increased the Company’s shareholding to 100%

• September 2, 2013

Added Yehansoul Savings Bank as a first-tier subsidiary

• January 13, 2014

Yehansoul Savings Bank was merged into KB Savings Bank Co., Ltd.

• March 20, 2014

Added KB Capital Co., Ltd. as a first-tier subsidiary

• July 2, 2014

Added Korea GCC Global Cooperation Private Equity Fund as a second-tier subsidiary

• June 24, 2015

Added KB Insurance Co., Ltd. as a non-consolidated first-tier subsidiary.

• November 23, 2015

Acquired additional shares of KB Insurance, which increased the Company’s shareholding from 19.47% to 33.29%.

• May 31, 2016

Added Hyundai Securities Co., Ltd. (“Hyundai Securities”) as a non-consolidated first-tier subsidiary.

• June 21, 2016

Disposed of its second-tier subsidiary, LIG Investment & Securities, Co., Ltd.

• June 28, 2016

Acquired treasury shares of Hyundai Securities, which increased the Company’s equity ownership in Hyundai Securities from 22.56% to 29.62%.

• September 9, 2016

Liquidated NPS-KBIC No. 1 Private Equity Fund

6

1.3. Overview of the Business Group

	(As of September 30, 2016)
Type	Name of Company	Controlling Company	Remarks
Holding Company	KB Financial Group	—	Listed
1st Tier Subsidiaries	Kookmin Bank	KB Financial Group	Not listed
	KB Insurance Co., Ltd.	KB Financial Group	Listed
	Hyundai Securities Co., Ltd.	KB Financial Group	Listed
	KB Kookmin Card Co., Ltd.	KB Financial Group	Not listed
	KB Investment & Securities Co., Ltd.	KB Financial Group	Not listed
	KB Life Insurance Co., Ltd.	KB Financial Group	Not listed
	KB Asset Management Co., Ltd.	KB Financial Group	Not listed
	KB Capital Co., Ltd.	KB Financial Group	Listed
	KB Savings Bank Co., Ltd.	KB Financial Group	Not listed
	KB Real Estate Trust Co., Ltd.	KB Financial Group	Not listed
	KB Investment Co., Ltd.	KB Financial Group	Not listed
	KB Credit Information Co., Ltd.	KB Financial Group	Not listed
	KB Data Systems Co., Ltd.	KB Financial Group	Not listed
2nd Tier Subsidiaries	Kookmin Bank Hong Kong Ltd.	Kookmin Bank	Not listed (Overseas)
	Kookmin Bank International Ltd.	Kookmin Bank	Not listed (Overseas)
	Kookmin Bank Cambodia PLC	Kookmin Bank	Not listed (Overseas)
	Kookmin Bank (China) Ltd.	Kookmin Bank	Not listed (Overseas)
	KB Claims Survey & Adjusting Co., Ltd.	KB Insurance	Not listed
	KB sonbo CNS	KB Insurance	Not listed
	Leading Insurance Services, Inc.	KB Insurance	Not listed (Overseas)
	LIG Insurance (China) Co., Ltd.	KB Insurance	Not listed (Overseas)
	PT. Kookmin Best Insurance Indonesia	KB Insurance	Not listed (Overseas)
	Hyundai Savings Bank Co., Ltd.	Hyundai Securities	Not listed
	Hyundai Asset Management Co., Ltd.	Hyundai Securities	Not listed
	Hyundai Securities America Inc.	Hyundai Securities	Not listed (Overseas)
	Hyundai Securities Asia Ltd.	Hyundai Securities	Not listed (Overseas)
	Hyundai-Tongyang Agrifood Private Equity Fund	Hyundai Securities	Not listed
	Keystone-Hyundai Securities No. 1 Private Equity Fund	Hyundai Securities	Not listed
	KB-Glenwood Private Equity Fund No.1	KB Investment & Securities	Not listed
	KBIC No.3 PEF	KB Investment	Not listed
	KoFC KBIC Frontier Champ 2010-5 PEF	KB Investment	Not listed
	KoFC POSCO HANWHA KB Shared Growth No. 2. Private Equity Fund	KB Investment	Not listed
	KoFC Value-up Private Equity Fund	KB Investment	Not listed
	Korea GCC Global Cooperation PEF	KB Investment	Not listed

7

Note: On August 2, 2016, the Company entered into a stock swap agreement with Hyundai Securities to effect a comprehensive stock swap (the “Stock Swap”) pursuant to which Hyundai Securities would become a wholly-owned subsidiary of the Company. On October 4, 2016, the board of directors of the Company approved the Stock Swap. On the date of the Stock Swap on October 19, 2016, 166,516,250 common shares of Hyundai Securities were exchanged for 31,759,844 newly issued common shares of the Company, and Hyundai Securities became a wholly-owned subsidiary of the Company.

1.4. Capital Structure

1.4.1. Common Shares

Capital Increase

(As of September 30, 2016)		(Unit: Won, shares)
Issue Date	Type	Number		Par Value		Issue Price		Remarks
September 29, 2008	Common Stock		356,351,693		5,000		48,444	Establishment of the Company
September 2, 2009	Common Stock		30,000,000		5,000		37,250	Rights offering to existing shareholders; % increase in number of common shares: 8.41865%

Capital Increase After the Reporting Period

(As of October 31, 2016)		(Unit: Won, shares)
Issue Date	Type	Number		Par Value		Issue Price		Remarks
October 19, 2016	Common Stock		31,759,844		5,000		35,474	Stock Swap

Number of Shares

(As of September 30, 2016)	(Unit: shares)
	Type
	Common Stock		Total
Shares Authorized for Issuance		1,000,000,000		1,000,000,000
Shares Issued (A) (1)		386,351,693		386,351,693
Treasury Stock (B) (2)		13,806,975		13,806,975
Shares Outstanding (A-B)		372,544,718		372,544,718

(1) On October 19, 2016, the Company issued 31,759,844 shares of common stock in connection with the Stock Swap, and the total number of shares issued by the Company increased to 418,111,537.

(2) On August 2, 2016, the board of directors of the Company resolved to enter into a trust agreement to acquire treasury shares. For more information, please refer to the related reports on Form 6-K furnished to the Securities and Exchange Commission by the Company on August 2, 2016. As of November 10, 2016, the Company held an aggregate of 17,834,604 shares of common stock as treasury shares, which were acquired pursuant to the trust agreement and the company has not made any decision on the use of its treasury shares.

8

1.4.2. Voting Rights

(As of September 30, 2016)
Items		Number of shares		Notes
Total number of issued shares	Common shares		386,351,693		—
	—		—		—
Shares without voting rights	Common shares		13,806,975		Treasury shares
	—		—		—
Shares for which voting rights cannot be exercised pursuant to the Articles of Incorporation	—		—		—
Shares for which voting rights are restricted under relevant laws and regulations	—		—		—
Shares with restored voting rights	—		—		—
Total shares for which voting rights may be exercised	Common shares		372,544,718		—
	—		—		—

1.5. Dividends

Items		January 1, 2016 to September 30, 2016		January 1, 2015 to December 31, 2015		January 1, 2014 to December 31, 2014
Par value per share (Won)			5,000		5,000		5,000
(Consolidated) Net income (Won in Millions)			1,689,813		1,698,318		1,400,722
Earnings per share (Won)			4,445		4,396		3,626
Total cash dividends (Won in Millions)			—		378,625		301,354
Total stock dividends (Won in Millions)			—		—		—
(Consolidated) Cash dividend payout ratio (%)			—		22.3		21.5
Cash dividend yield (%)	Common Shares		—		2.9		2.0
	—		—		—		—
Stock dividend yield (%)	Common Shares		—		—		—
	—		—		—		—
Cash dividend per share (Won)	Common Shares		—		980		780
	—		—		—		—
Stock dividend per share (Shares)	Common Shares		—		—		—
	—		—		—		—

9

2. Business

2.1. Results of Operations

	(Unit: in millions of Won)
	For the nine months ended September 30, 2016			For the nine months ended September 30, 2015			For the year ended December 31, 2015			For the year ended December 31, 2014
Net interest income		4,651,686			4,637,046			6,203,199			6,415,775
Interest income		7,412,465			7,852,176			10,375,823			11,635,296
Interest expense		(2,760,779	)		(3,215,130	)		(4,172,624	)		(5,219,521	)
Net fee and commission income		1,108,040			1,173,539			1,534,983			1,382,729
Fee and commission income		2,256,596			2,231,848			2,971,095			2,666,185
Fee and commission expense		(1,148,556	)		(1,058,309	)		(1,436,112	)		(1,283,456	)
Net gains on financial assets/liabilities at fair value through profit or loss		117,890			277,627			359,727			439,198
Net other operating expenses		(237,515	)		(544,396	)		(715,960	)		(1,040,909	)
General and administrative expenses		(3,117,994	)		(3,444,294	)		(4,523,584	)		(4,009,694	)
Operating profit before provision for credit losses		2,522,107			2,099,522			2,858,365			3,187,099
Provision for credit losses		(507,727	)		(624,397	)		(1,037,231	)		(1,227,976	)
Net operating profit		2,014,380			1,475,125			1,821,134			1,959,123

* Note: Based on K-IFRS (on a consolidated basis).

10

2.2. Sources and Uses of Funds

2.2.1. Sources of Funds

														(Unit: in millions of Won, %)
		For the nine months ended September 30, 2016						For the year ended December 31, 2015						For the year ended December 31, 2014
		Average Balance		Interest Rate (%)		Ratio (%)		Average Balance		Interest Rate (%)		Ratio (%)		Average Balance		Interest Rate (%)		Ratio (%)
Won Currency	Deposits		204,514,772		1.38		61.82		193,725,814		1.69		62.62		186,833,286		2.20		63.76
	Certificate of deposit		3,536,632		1.68		1.07		3,645,078		1.92		1.18		1,689,157		2.71		0.58
	Borrowings		6,343,692		1.61		1.92		5,709,025		1.88		1.85		5,456,405		2.52		1.86
	Call money		1,112,169		1.42		0.34		2,009,387		1.66		0.65		3,177,907		2.36		1.08
	Debentures		29,321,892		2.57		8.86		27,365,637		2.78		8.85		24,966,578		3.80		8.52
	Other		5,777,385		1.58		1.75		4,763,806		2.03		1.53		3,298,600		2.80		1.13
Subtotal			250,606,542		1.53		75.76		237,218,747		1.83		76.68		225,421,933		2.40		76.93
Foreign currency	Deposits		8,480,317		0.53		2.56		6,183,499		0.52		2.00		5,087,884		0.52		1.74
	Borrowings		5,672,503		0.74		1.72		6,121,121		0.46		1.98		6,071,393		0.52		2.07
	Call money		1,205,315		0.67		0.36		1,007,103		0.28		0.33		985,695		0.30		0.34
	Debentures		4,243,210		2.55		1.28		3,520,324		3.00		1.14		3,082,838		2.74		1.05
	Other		176,455		1.27		0.05		163,462		1.31		0.05		212,797		1.14		0.07
Subtotal			19,777,800		1.04		5.97		16,995,509		1.01		5.50		15,440,607		0.96		5.27
Other	Total shareholders’ equity		29,437,736		—		8.90		28,252,594		—		9.13		26,872,801		—		9.17
	Allowances		755,901		—		0.23		787,604		—		0.25		765,895		—		0.26
	Other		30,220,935		—		9.14		26,126,546		—		8.44		24,543,634		—		8.37
Subtotal			60,414,572		—		18.27		55,166,744		—		17.82		52,182,330		—		17.80
Total			330,798,914		—		100.00		309,381,000		—		100.00		293,044,870		—		100.00

Note: Based on K-IFRS (on a consolidated basis).

11

2.2.2. Uses of Funds

																		(Unit: in millions of Won, %)
		For the nine months ended September 30, 2016								For the year ended December 31, 2015								For the year ended December 31, 2014
		Average Balance			Interest Rate (%)		Ratio (%)			Average Balance			Interest Rate (%)		Ratio (%)			Average Balance			Interest Rate (%)		Ratio (%)
Won currency	Due from banks		5,736,797			1.63		1.73			7,197,739			1.83		2.33			6,534,133			2.56		2.23
	Securities		50,913,284			2.90		15.39			45,372,914			3.22		14.67			43,889,573			3.81		14.98
	Loans		221,803,185			3.15		67.05			207,499,414			3.48		67.07			195,609,187			4.16		66.75
	Guarantee payments under payment guarantee		31,203			1.06		0.01			32,644			1.19		0.01			51,156			0.76		0.02
	Call loan		447,814			1.43		0.14			314,179			1.79		0.10			642,821			2.35		0.22
	Private placement corporate bonds		717,467			3.30		0.22			830,676			3.81		0.27			692,993			4.83		0.24
	Credit cards		12,582,277			8.73		3.80			11,904,279			9.03		3.85			11,309,156			9.86		3.86
	Other		5,187,279			5.04		1.57			7,154,906			5.15		2.31			8,231,500			5.47		2.81
	Allowance		(2,158,701	)		—		(0.65	)		(2,316,563	)		—		(0.75	)		(2,844,954	)		—		(0.97	)
Subtotal			295,260,605			3.37		89.26			277,990,188			3.70		89.86			264,115,565			4.39		90.14
Foreign currency	Due from banks		2,327,082			0.78		0.70			1,782,048			1.12		0.58			1,277,335			1.81		0.43
	Securities		3,386,018			2.90		1.02			1,285,058			2.06		0.42			815,219			3.17		0.28
	Loans		8,105,171			1.74		2.46			9,009,829			1.52		2.91			8,347,507			1.81		2.85
	Call loan		2,486,588			0.58		0.75			1,435,461			0.33		0.46			1,869,308			0.81		0.64
	Bills bought		2,693,521			1.30		0.81			2,728,557			1.10		0.88			2,232,263			1.30		0.76
	Allowance		(353,912	)		—		(0.11	)		(234,422	)		—		(0.08	)		(197,375	)		—		(0.07	)
	Other		11,726			—		—			3,143			—		—			2,470			—		—
Subtotal			18,656,194			1.65		5.63			16,009,674			1.37		5.17			14,346,727			1.70		4.89
Other	Cash		1,725,357			—		0.52			1,715,237			—		0.55			1,659,230			—		0.57
	Fixed assets held for business		3,297,338			—		1.00			3,230,133			—		1.04			3,196,710			—		1.09
	Other		11,859,420			—		3.59			10,435,768			—		3.38			9,726,638			—		3.31
Subtotal			16,882,115			—		5.11			15,381,138			—		4.97			14,582,578			—		4.97
Total			330,798,914			—		100.00			309,381,000			—		100.00			293,044,870			—		100.00

Note: Based on K-IFRS (on a consolidated basis).

12

2.3. Other Information to Consider in Making an Investment Decision

2.3.1. Capital Adequacy

KB Financial Group	(Unit: in millions of Won, %)
	As of September 30, 2016(1)		As of December 31, 2015		As of December 31, 2014
Total Capital (A)		29,911,836		29,140,025		28,347,675
Risk-weighted assets (B)		196,171,893		188,212,825		182,485,957
BIS ratio (A/B)		15.25		15.48		15.53

* Note: Calculated in accordance with Basel III

(1) Preliminary figures

Kookmin Bank	(Unit: in billions of Won, %)
	As of September 30, 2016		As of December 31, 2015		As of December 31, 2014
Total Capital (A)		24,427		23,686		23,422
Risk-weighted assets (B)		149,057		147,973		146,690
BIS ratio (A/B)		16.39		16.01		15.97

* Note: Calculated in accordance with Basel III

2.3.2. Credit ratings

			(As of September 30, 2016)
Date of Rating	Evaluated Securities	Credit Rating	Company (Rating Range)
3/14/2014	Debentures	AAA	Korea Ratings (AAA ~ D) / KIS Ratings (AAA ~ D) / NICE Investors Service (AAA ~ D)
2/23/2015	Debentures	AAA	Korea Ratings (AAA ~ D) / KIS Ratings (AAA ~ D) / NICE Investors Service (AAA ~ D)
6/5/2015	Debentures	AAA	Korea Ratings (AAA ~ D) / KIS Ratings (AAA ~ D) / NICE Investors Service (AAA ~ D)
9/16/2015	Debentures	AAA	Korea Ratings (AAA ~ D) / KIS Ratings (AAA ~ D) / NICE Investors Service (AAA ~ D)
11/18/2015	Commercial Paper	A1	Korea Ratings (A1 ~ D) / KIS Ratings (A1 ~ D) / NICE Investors Service (A1 ~ D)
11/25/2015	Debentures	AAA	Korea Ratings (AAA ~ D) / KIS Ratings (AAA ~ D) / NICE Investors Service (AAA ~ D)
5/11/2016	Debentures	AAA	Korea Ratings (AAA ~ D) / KIS Ratings (AAA ~ D) / NICE Investors Service (AAA ~ D)
6/24/2016	Debentures	AAA	Korea Ratings (AAA ~ D) / KIS Ratings (AAA ~ D) / NICE Investors Service (AAA ~ D)
6/30/2016	Commercial Paper	A1	Korea Ratings (A1 ~ D) / KIS Ratings (A1 ~ D) / NICE Investors Service (A1 ~ D)
7/22/2016	Debentures	AAA	Korea Ratings (AAA ~ D) / KIS Ratings (AAA ~ D) / NICE Investors Service (AAA ~ D)
8/24/2016	Debentures	AAA	Korea Ratings (AAA ~ D) / KIS Ratings (AAA ~ D) / NICE Investors Service (AAA ~ D)

13

2.3.3. Early Retirement Program

To enhance productivity by improving its labor structure, Kookmin Bank implemented a voluntary early retirement program following negotiations with its labor union.

Date of retirement	Number of retired persons
January 14, 2016	171
July 9, 2016	210

2.3.4. Purchase of Land for New Headquarters

In March 2016, Kookmin Bank entered into a land purchase agreement to purchase a site of approximately 4,727 square meters located in Yeoido, Seoul for its new headquarters. Kookmin Bank plans to construct its new headquarters (floor space of approximately 56,000 square meters) by 2020. By centralizing its headquarters functions, Kookmin Bank seeks to reduce rental costs and other intangible losses while achieving synergy among business units located in close proximity.

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3. Financial Information

3.1. Consolidated Condensed Financial Information

3.1.1. Consolidated Statements of Financial Position

	(Unit: in millions of Won)
	As of September 30, 2016			As of December 31, 2015		As of December 31, 2014
Cash and due from financial institutions		17,019,073			16,316,066		15,423,847
Financial assets at fair value through profit or loss		14,186,679			11,174,064		10,757,910
Derivative financial assets		2,754,738			2,278,112		1,968,190
Loans		257,531,389			245,005,370		231,449,653
Financial investments		41,619,829			39,136,759		34,960,620
Investments in associates		3,039,494			1,737,840		670,332
Property and equipment		3,336,212			3,287,383		3,082,985
Investment property		185,990			211,815		377,544
Intangible assets		480,911			466,828		488,922
Current income tax assets		15,328			18,525		306,313
Deferred income tax assets		5,206			8,373		15,562
Assets held for sale		47,035			48,628		70,357
Other assets		11,618,405			9,375,704		8,783,473
Total assets		351,840,289			329,065,467		308,355,708
Financial liabilities at fair value through profit or loss		3,770,266			2,974,604		1,818,968
Derivative financial liabilities		2,758,232			2,325,756		1,797,390
Deposits		234,559,449			224,268,185		211,549,121
Debts		16,481,231			16,240,743		15,864,500
Debentures		34,590,389			32,600,603		29,200,706
Provisions		531,234			607,860		614,347
Net defined benefit liabilities		216,846			73,197		75,684
Current income tax liabilities		320,652			30,920		231,907
Deferred income tax liabilities		192,723			179,243		93,211
Other liabilities		28,482,633			20,861,634		19,597,202
Total liabilities		321,903,655			300,162,745		280,843,036
Equity attributable to shareholders of the parent company		29,682,308			28,680,621		27,315,092
Share capital		1,931,758			1,931,758		1,931,758
Capital surplus		15,854,790			15,854,510		15,854,510
Accumulated other comprehensive income		596,539			430,244		461,679
Retained earnings		11,775,297			10,464,109		9,067,145
Treasury shares		(476,076	)		—		—
Non-controlling interests		254,326			222,101		197,580
Total equity		29,936,634			28,902,722		27,512,672
Total liabilities and equity		351,840,289			329,065,467		308,355,708
Number of consolidated companies		92			83		112

15

3.1.2. Consolidated Statements of Comprehensive Income

	(Unit: in millions of Won, except per share amounts)
	For the nine months ended September 30, 2016			For the nine months ended September 30, 2015			For the year ended December 31, 2015			For the year ended December 31, 2014
Net interest income		4,651,686			4,637,046			6,203,199			6,415,775
Net fee and commission income		1,108,040			1,173,539			1,534,983			1,382,729
Net gains on financial assets/liabilities at fair value through profit or loss		117,890			277,627			359,727			439,198
Net other operating expenses		(237,515	)		(544,396	)		(715,960	)		(1,040,909	)
General and administrative expenses		(3,117,994	)		(3,444,294	)		(4,523,584	)		(4,009,694	)
Operating profit before provision for credit losses		2,522,107			2,099,522			2,858,365			3,187,099
Provision for credit losses		(507,727	)		(624,397	)		(1,037,231	)		(1,227,976	)
Net operating profit		2,014,380			1,475,125			1,821,134			1,959,123
Net non-operating profit (loss)		217,637			259,580			343,561			(57,698	)
Profit before income tax		2,232,017			1,734,705			2,164,695			1,901,425
Income tax expense		(504,983	)		(359,100	)		(437,389	)		(486,314	)
Profit for the period		1,727,034			1,375,605			1,727,306			1,415,111
Other comprehensive income (loss) for the period, net of tax		166,455			8,164			(31,262	)		123,863
Total comprehensive income for the period		1,893,489			1,383,769			1,696,044			1,538,974
Profit attributable to:		1,727,034			1,375,605			1,727,306			1,415,111
Shareholders of the parent company		1,689,813			1,351,193			1,698,318			1,400,722
Non-controlling interests		37,221			24,412			28,988			14,389
Total comprehensive income for the period attributable to:		1,893,489			1,383,769			1,696,044			1,538,974
Shareholders of the parent company		1,856,108			1,359,491			1,666,883			1,526,089
Non-controlling interests		37,381			24,278			29,161			12,885
Earnings per share
Basic earnings per share (Won)		4,445			3,497			4,396			3,626
Diluted earnings per share (Won)		4,425			3,483			4,376			3,611

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3.2. Separate Condensed Financial Information

3.2.1. Separate Statements of Financial Position

	(Unit: in millions of Won)
	As of September 30, 2016			As of December 31, 2015			As of December 31, 2014
Cash and due from financial institutions		350,681			324,947			30,739
Financial assets at fair value through profit or loss		201,038			99,118			—
Loans		36,525			—			10,000
Investments in subsidiaries		18,557,566			18,557,566			18,557,566
Investments in associates		2,232,915			883,065			—
Property and equipment		489			578			514
Intangible assets		8,215			8,428			8,684
Deferred income tax assets		3,309			4,515			4,089
Other assets		446,613			137,954			598,929
Total assets		21,837,351			20,016,171			19,210,521
Debts		—			—			—
Debentures		3,373,875			1,647,117			628,837
Net defined benefit liabilities		2,280			591			803
Current income tax liabilities		300,565			17,178			222,639
Other liabilities		161,759			123,281			71,568
Total liabilities		3,838,479			1,788,167			923,847
Share capital		1,931,758			1,931,758			1,931,758
Capital surplus		13,513,809			13,513,809			13,513,809
Accumulated other comprehensive loss		(5,058	)		(4,979	)		(4,238	)
Retained earnings		3,034,439			2,787,416			2,845,345
Treasury Shares		(476,076	)		—			—
Total equity		17,998,872			18,228,004			18,286,674
Total liabilities and equity		21,837,351			20,016,171			19,210,521
Evaluation method for investment securities in subsidiaries, affiliates and joint ventures		Cost-method			Cost-method			Cost-method

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3.2.2. Separate Statements of Comprehensive Income

	(Unit: in millions of Won, except per share amounts)
	For the nine months ended September 30, 2016			For the nine months ended September 30, 2015			For the year ended December 31, 2015			For the year ended December 31, 2014
Net interest expense		(38,282	)		(17,044	)		(25,744	)		(16,758	)
Net fee and commission expense		(4,851	)		(4,291	)		(8,228	)		(6,658	)
Net gains on financial assets at fair value through profit or loss		7,149			895			1,658			—
Net other operating income		694,908			315,527			315,527			493,782
General and administrative expenses		(31,810	)		(28,757	)		(39,916	)		(36,342	)
Operating profit before provision for credit losses		627,114			266,330			243,297			434,024
Provision for credit losses		—			—			—			—
Net operating profit		627,114			266,330			243,297			434,024
Net non-operating income (expense)		(234	)		53			(62	)		(473	)
Profit before income tax		626,880			266,383			243,235			433,551
Income tax benefit (expense)		(1,232	)		64			190			(600	)
Profit for the period		625,648			266,447			243,425			432,951
Other comprehensive income (loss) for the period, net of tax		(79	)		(57	)		(741	)		(1,523	)
Total comprehensive income for the period		625,569			266,390			242,684			431,428
Earnings per share
Basic earnings per share (Won)		1,646			690			630			1,121
Diluted earnings per share (Won)		1,638			687			627			1,116

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3.3. Other Selected Financial Data

3.3.1. Won-denominated Liquidity Ratio

	(Unit: in millions of Won, %)
Category	As of September 30, 2016		As of December 31, 2015		As of December 31, 2014
Current assets in Won (A)		96,928		325,124		30,767
Current liabilities in Won (B)		53,976		4,565		2,170
Current ratio (A/B)		179.58		7,122.10		1,417.54

Notes:

• Based on K-IFRS (on a separate basis).

• Calculated based on Won-denominated assets and liabilities due within one month.

3.3.2. Selected ratios

	(Unit: %)
Category	For the nine months ended September 30, 2016		For the year ended December 31, 2015		For the year ended December 31, 2014
Net income as a percentage of average total assets (ROA)		0.67		0.54		0.47
Net income as a percentage of average shareholders’ equity (ROE)		7.73		6.06		5.26

Note: Based on K-IFRS (on a consolidated basis).

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3.3.3. 20 Largest Exposures of Kookmin Bank by Borrower

	(As of September 30, 2016)
Company	Credit extended
	(Unit: in billions of Won)
Samsung Electronics Co., Ltd.		1,130
Kia Motors Corporation		666
Samsung Display Co., Ltd.		641
Korea Securities Finance Corp.		636
Hyundai Steel Co., Ltd.		631
LG Electronics Inc.		619
Hyundai Heavy Industries Co., Ltd.		553
Samsung Heavy Industries Co., Ltd.		550
Hyundai Capital Services, Inc.		506
Daewoo Shipbuilding & Marine Engineering Co., Ltd.		500
KT Corporation		428
CJ CheilJedang Corporation		416
Hyundai Motor Company		388
LG Chem, Ltd.		370
Hankook Tire Co., Ltd.		368
S-Oil Corporation		356
Korean Airlines Co., Ltd.		356
Hanwha Corporation.		352
Airport Railroad Co., Ltd.		347
Posco Daewoo Corporation		347
Total		10,160

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3.3.4. 10 Largest Exposures of Kookmin Bank by Chaebol Group

	(As of September 30, 2016)
Group	Credit extended
	(Unit: in billions of Won)
Hyundai Motor		3,770
Samsung		3,337
SK		1,706
LG		1,325
Hanwha		1,303
Lotte		1,136
Hyundai Heavy Industries		888
CJ		760
POSCO		757
LS		704
Total		15,686

3.3.5. Kookmin Bank’s Loan Concentration by Industry

	(As of September 30, 2016)
Industry	Total Credit		Percentage of Total Credit
	(Unit: in billions of Won, %)
Manufacturing		38,683		34.81
Real estate		22,447		20.20
Retail and wholesale		15,519		13.97
Hotel, lodging and food service		7,078		6.37
Construction		3,862		3.48
Financial institutions		1,909		1.72
Other		21,617		19.45
Total		111,115		100.00

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3.3.6. Top 20 Non-Performing Loans of Kookmin Bank

		(As of September 30, 2016)
	Industry	Total Credit		Allowance for Loan Losses
		(Unit: in billions of Won)
Borrower A	Construction		99.1		97.2
Borrower B	Construction		71.4		69.2
Borrower C	Manufacturing		60.5		4.2
Borrower D	Publishing, Media, Broadcasting and Information Service		55.3		48.9
Borrower E	Shipping		53.5		53.5
Borrower F	Manufacturing		52.3		51.9
Borrower G	Shipbuilding		51.4		40.6
Borrower H	Real estate and leasing		43.3		42.9
Borrower I	Construction		41.2		40.3
Borrower J	Construction		41.0		39.0
Borrower K	Shipping		23.8		23.5
Borrower L	Shipping		20.9		17.9
Borrower M	Shipping		20.4		17.4
Borrower N	Manufacturing		17.9		0.1
Borrower O	Arts, sports and recreation related services		16.5		16.5
Borrower P	Manufacturing		15.1		15.1
Borrower Q	Publishing, Media, Broadcasting and Information Service		14.7		12.8
Borrower R	Construction		14.6		13.3
Borrower S	Manufacturing		14.3		15.3
Borrower T	Manufacturing		14.2		1.1
Total			741.4		620.7

3.4. Other Financial Information

See Exhibits 99.1 and 99.2 attached hereto for our consolidated and separate financial statements and relevant notes, which have been prepared in accordance with K-IFRS and reviewed by our independent auditors as stated in their review reports. The review reports will also be available on our website at www.kbfg.com.

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4. Independent Public Accountants

4.1. Audit / Review Services

Period	Auditor	Activity	Compensation(1)     (in millions of Won)	Accrued Time (hours)
January 1 to September 30, 2016	Samil PricewaterhouseCoopers	Quarterly / first half and annual review & audit, review of internal accounting management system (including audit of internal control over financial reporting)	760		5,270
January 1 to December 31, 2015	Samil PricewaterhouseCoopers	Quarterly / first half and annual review & audit, review of internal accounting management system (including audit of internal control over financial reporting)	760		9,947
January 1 to December 31, 2014	Samil PricewaterhouseCoopers	Quarterly / first half and annual review & audit, review of internal accounting management system (including audit of internal control over financial reporting)	732		9,869

(1) Excluding value-added taxes.

4.2. Public Company Accounting Oversight Board (“PCAOB”) Audit Services

Period	Auditor	Activity	Service Period	Compensation(1)
				(in millions of Won)
January 1 to September 30, 2016	Samil PricewaterhouseCoopers	PCAOB audit of consolidated financial statements and internal control over financial reporting	May 1, 2016 to April 30, 2017		459
January 1 to December 31, 2015	Samil PricewaterhouseCoopers	PCAOB audit of consolidated financial statements and internal control over financial reporting	May 1, 2015 to April 30, 2016		459
January 1 to December 31, 2014	Samil PricewaterhouseCoopers	PCAOB audit of consolidated financial statements and internal control over financial reporting	May 1, 2014 to April 30, 2015		487

(1) Excluding value-added taxes.

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5. Corporate Governance and Affiliated Companies

5.1. Board of Directors & Committees under the Board

As of September 30, 2016, our board of directors consisted of eight directors, comprising one executive director, one non-standing director and six non-executive directors. The following committees currently serve under our board of directors:

• Audit Committee;

• Risk Management Committee;

• Evaluation & Compensation Committee;

• Non-Executive Director Nominating Committee;

• Corporate Governance Committee; and

• Audit Committee Member Nominating Committee.

For the list of our directors, see 6. Directors, Senior Management and Employees — 6.1. Executive Directors, — 6.2. Non-standing Directors and — 6.3. Non-executive Directors below.

5.2. Audit Committee

The audit committee oversees our financial reporting and approves the appointment of our independent auditors and internal compliance officers. The committee also reviews our financial information, auditor’s examinations, key financial statement issues, the plans and evaluation of internal controls and the administration of our financial affairs by the board of directors. In connection with the general meetings of shareholders, the committee examines the agenda for, and financial statements and other reports to be submitted by, the board of directors to each general meeting of shareholders. The committee holds regular meetings every quarter and on an as-needed basis.

5.3. Compensation to Directors

5.3.1. Total Amount Approved at the Meeting of Shareholders

(Unit: in millions of Won)
	Total number of persons(1)		Total amount approved at shareholders’ meeting(2)		Notes
Registered Directors (Non-executive directors)		8(6)		2,500		—

(1) Represent the total number of applicable persons as of September 30, 2016.

(2) Represents the aggregate amount for all directors (including non-executive directors). Excludes compensation in the form of long-term incentive performance share grants.

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5.3.2. Total Amount Paid as of September 30, 2016

(Unit: in millions of Won)
	Total number of persons(1)		Total payment (2)(4)(5)		Average payment per person(3)		Notes
Registered Directors (excluding non-executive directors)		2		461		230		—
Non-executive Directors (excluding audit committee members)		3		162		54		—
Audit committee members or internal auditor		3		182		55		—
Total		8		804		97		—

Note: On a separate basis.

(1) Represents the total number of applicable persons as of September 30, 2016.

(2) Represents the total amount paid (rounded to the nearest million) for the nine months ended September 30, 2016 (includes the amount paid to Mr. Woon Youl Choi, a former non-executive director, who resigned on March 25, 2016).

(3) Represents (i) the total amount paid (rounded to the nearest million) for the nine months ended September 30, 2016, divided by (ii) the number of applicable persons for the applicable reporting period.

(4) Payment subject to the Company’s internal policies on compensation to directors.

(5) If the amount paid by Kookmin Bank to our registered directors who held concurrent positions at Kookmin Bank is taken into account, the total amount paid (rounded to the nearest million) to our registered directors for the nine months ended September 30, 2016 is Won 853 million. Such amount includes performance based short-term incentive payments of Won 341 million (Won 182 million by KB Financial Group and Won 159 million by Kookmin Bank), which were based on performance in 2015 and paid in the first quarter of 2016. Such amount does not include Won 749 million that was recognized (Won 375 million by KB Financial Group and Won 373 million by Kookmin Bank) with respect to performance based stock grants for the nine months ended September 30, 2016.

Compensation exceeding Won 500 million – Individual Basis⁽¹⁾

(Unit: in millions of Won)
Name	Position	Total Compensation		Additional Compensation
—	—		—		—

(1) Not included in quarterly business reports.

5.4. Affiliated Companies

5.4.1. List of Affiliated Companies

Affiliated companies of KB Financial Group that are first-tier subsidiaries and KB Financial Group’s ownership of such companies as of September 30, 2016 are as follows.

• Kookmin Bank (100.00%)

• KB Insurance Co., Ltd. (33.29%)

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• Hyundai Securities Co., Ltd. (29.62%)

• KB Kookmin Card Co., Ltd. (100.00%)

• KB Investment & Securities Co., Ltd. (100.00%)

• KB Life Insurance Co., Ltd. (100.00%)

• KB Asset Management Co., Ltd. (100.00%)

• KB Capital Co., Ltd. (52.02%)

• KB Savings Bank Co., Ltd. (100.00%)

• KB Real Estate Trust Co., Ltd. (100.00%)

• KB Investment Co., Ltd. (100.00%)

• KB Credit Information Co., Ltd. (100.00%)

• KB Data Systems Co., Ltd. (100.00%)

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6. Directors, Senior Management and Employees

6.1. Executive Directors

As of September 30, 2016, we had one executive director. The name, position and the end of the term of our executive director and the number of shares of KB Financial Group’s common stock he owned as of September 30, 2016 are set forth below.

Name	Date of Birth		Position		Common Shares Owned		End of Term
Jong Kyoo Yoon		October 1955		Chairman & Chief Executive Officer		10,000		November 20, 2017

6.2. Non-standing Directors

As of September 30, 2016, we had one non-standing director. The name, position and the end of the term of our non-standing director and the number of shares of KB Financial Group’s common stock he owned as of September 30, 2016 are set forth below.

Name	Date of Birth	Position	Common Shares Owned		End of Term
Hong Lee	April 1958	Non-standing Director		459	March 26, 2017

6.3. Non-executive Directors

Our non-executive directors and the number of shares of KB Financial Group’s common stock they respectively owned as of September 30, 2016 are as follows.

Name	Date of Birth	Position	Common Shares Owned		End of Term
Young Hwi Choi	October 1945	Non-executive Director		—	March 24, 2017
Suk Ryul Yoo	April 1950	Non-executive Director		—	March 24, 2017
Michael Byungnam Lee	September 1954	Non-executive Director		1,020	March 24, 2017
Jae Ha Park	November 1957	Non-executive Director		—	March 24, 2017
Eunice Kyonghee Kim	March 1959	Non-executive Director		—	March 24, 2017
Jongsoo Han	October 1960	Non-executive Director		—	March 24, 2017

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6.4. Senior Management

In addition to our executive director who is also our executive officer, we currently have the following twelve executive officers as of September 30, 2016.

Name	Date of Birth	Position	Common Shares Owned		End of Term
Ok Chan Kim	July 1956	President & Chief Operating Officer		4,674	November 20, 2017
Ki Heon Kim	October 1955	Deputy President; IT Planning Department		—	December 31, 2016
Jungsoo Huh	August 1960	Senior Managing Director; Financial Planning Department, Insurance Unit, Securities Unit and Investor Relations Department		579	December 31, 2016
Dong Cheol Lee	October 1961	Senior Managing Director; Strategic Planning Department and Synergy Management Department		—	December 31, 2016
Young-Tae Park	December 1961	Senior Managing Director; Information Security Department and Data Analytics Department		450	December 31, 2016
Jae Hong Park	April 1967	Senior Managing Director; Global Business Department		—	December 31, 2016
Kyung Yup Cho	September 1961	Senior Managing Director; KB Research		800	December 31, 2016
Ki Hwan Kim	March 1963	Managing Director; Risk Management Department and Model Validation Unit		321	December 31, 2016
Hong Seob Shin	September 1962	Managing Director; Public Relations Department and Design Unit		580	December 31, 2016
Pil Kyu Im	March 1964	Managing Director and Chief Compliance Officer		445	January 10, 2018
Young Hyuk Jo	April 1963	Managing Director and enforcement officer of the Internal Audit; Audit Department		1	December 31, 2017
Dae Myeong Kang	September 1963	Managing Director; Future Finance Department		455	December 31, 2016

(1) After the reporting period, Mr. Ki Hwan Kim was appointed as Chief Risk Officer (by a board resolution on October 20, 2016) pursuant to the Act on Corporate Governance of Financial Companies, and the end of the term was changed to December 31, 2017.

28

As of September 30, 2016, following management also serves as senior management at our subsidiaries.

Name	Subsidiary	Position	Appointment date
Jong Kyoo Yoon	Kookmin Bank	President and Chief Executive Officer		November 2014
Ki Heon Kim	Kookmin Bank	Senior Executive Vice President; Head of IT Group		January 2015
Jae Hong Park	Kookmin Bank	Senior Managing Director; Head of Global Business		January 2016
Ki Hwan Kim	Kookmin Bank	Managing Director; Head of Risk Management Group		January 2016
Hong Seob Shin	Kookmin Bank	Managing Director; Head of Consumer Brand Strategy Group		January 2016
Dae Myeong Kang	Kookmin Bank	Managing Director; Acting Head of Future Channel Group		January 2016
Dong Cheol Lee	Kookmin Card	Non-standing Director		January 2016
Hong Lee	Kookmin Bank	Senior Executive Vice President, Head of Strategy & Finance Planning Group		January 2016
Jungsoo Huh	KB Insurance	Non-standing Director		March 2016
Young-Tae Park	KB Capital	Non-standing Director		March 2016

6.5. Employees

The following table shows the breakdown of our employees as of September 30, 2016.

(Unit: in millions of Won)
	Number of Employees		Average Tenure of Employees (months)		Total Amount of Annual Salary		Average Annual Wage per Person (1)
Total		159		33 months		13,914		88

(1) Represents (i) the total amount of annual salary paid as of September 30, 2016 divided by (ii) the total number of employees as of September 30, 2016.

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7. Major Shareholders and Related Party Transactions

7.1. Major Shareholders

The following table presents information regarding holders of 5% or more of our total issued shares as of September 30, 2016.

(Unit: shares, %)
Name	Number of Shares of Common Stock	Percentage of Total Issued Shares(1)
Korean National Pension Service	36,826,207	9.53
JP Morgan Chase Bank, N.A.(2)	29,898,274	7.74

(1) Calculated based on 386,351,693 shares of our common stock issued and outstanding as of August 12, 2016.

(2) Depositary under the Company’s ADR program. The voting rights are held by ADR holders.

7.2. Changes in the Largest Shareholder

(As of September 30, 2016)					(Unit: shares, %)
Name of Largest Shareholder	Date of Change in Largest Shareholder/ Date of Change in Ownership Level		Number of Shares of Common Stock		Percentage of Total Issued Shares
Korean National Pension Service		September 30, 2008		17,910,781		5.03
ING Bank N.V.		October 20, 2008		18,045,337		5.06
Korean National Pension Service		October 31, 2008		21,675,810		6.08
Korean National Pension Service		December 31, 2008		23,284,404		6.53
Korean National Pension Service		February 4, 2009		23,271,087		6.53
Korean National Pension Service		March 27, 2009		22,548,541		6.33
Korean National Pension Service		May 29, 2009		19,653,362		5.52
Korean National Pension Service		July 27, 2009		19,673,220		5.52
Korean National Pension Service		September 2, 2009		21,199,372		5.49
Korean National Pension Service		December 7, 2009		20,321,051		5.26
Korean National Pension Service		December 31, 2009		20,046,217		5.19
ING Bank N.V.		January 22, 2010		19,401,044		5.02
Korean National Pension Service		July 8, 2011		23,650,699		6.12
Korean National Pension Service		December 31, 2011		26,510,171		6.86
Korean National Pension Service		March 14, 2012		27,894,880		7.22
Korean National Pension Service		August 1, 2012		31,817,770		8.24
Korean National Pension Service		December 31, 2012		33,158,257		8.58
Korean National Pension Service		June 12, 2013		34,479,641		8.92
Korean National Pension Service		July 23, 2013		35,699,841		9.24
Korean National Pension Service		December 31, 2013		38,476,974		9.96
Korean National Pension Service		October 14, 2014		36,750,987		9.51
Korean National Pension Service		December 31, 2014		36,383,211		9.42
Korean National Pension Service		December 31, 2015		35,534,667		9.20
Korean National Pension Service		August 12, 2016		36,826,207		9.53

Note: Following the Stock Swap on October 19, 2016, the percentage of the Company’s shares owned by the Korean National Pension Service increased to 9.72% (40,655,531 shares) which was calculated by adding the number of shares of the Company owned by the Korean National Pension Service before the Stock Swap (36,826,207 shares as of August 12, 2016) and the number of shares of the Company allotted to the Korean National Pension Service pursuant to the Stock Swap (calculated by multiplying the swap ratio to 20,077,073 shares of Hyundai Securities owned by the Korean National Pension Service before the Stock Swap).

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7.3. Employee Stock Ownership Association

(As of September 30, 2016)			(Unit: shares)
Company Name	Number of shares		Type of shares
KB Financial Group Inc.		13,781		Common Stock
Kookmin Bank		1,972,950		Common Stock
KB Insurance Co., Ltd.		—		—
Hyundai Securities Co., Ltd.		—		—
KB Kookmin Card Co., Ltd.		97,233		Common Stock
KB Investment & Securities Co., Ltd.		11,885		Common Stock
KB Life Insurance Co., Ltd.		10,912		Common Stock
KB Asset Management Co., Ltd.		4,614		Common Stock
KB Capital Co., Ltd.		—		—
KB Savings Bank Co., Ltd.		450		Common Stock
KB Real Estate Trust Co., Ltd.		7,034		Common Stock
KB Investment Co., Ltd.		1,318		Common Stock
KB Credit Information Co., Ltd.		5,867		Common Stock
KB Data Systems Co., Ltd.		8,955		Common Stock
Total		2,134,999		Common Stock

7.4. Investments in Certain Affiliated Companies

(As of September 30, 2016)							(Units: shares, millions of Won, %)
Name	Ending Balance						Total Assets as of the latest fiscal year(1)		Net Income (loss) for the latest fiscal year(1)
	Number of shares		Shareholding percentage		Book value
Kookmin Bank		404,379,116		100		14,821,721		285,528,371		1,055,656
KB Insurance Co., Ltd. (2)		19,972,759		33.29		883,065		26,503,642		173,736
Hyundai Securities Co., Ltd. (3)		70,096,280		29.62		1,349,850		21,297,709		220,492
KB Kookmin Card Co., Ltd.		92,000,000		100		1,953,175		16,123,021		354,614
KB Investment & Securities Co., Ltd.		31,588,314		100		507,212		6,034,407		47,097
KB Life Insurance Co., Ltd.		91,200,000		100		485,314		8,515,984		12,499
KB Asset Management Co., Ltd.		7,667,550		100		96,312		223,470		24,581
KB Capital Co., Ltd.		11,180,630		52.02		279,870		5,587,682		63,087
KB Savings Bank Co., Ltd.		8,001,912		100		157,544		856,516		20,644
KB Real Estate Trust Co., Ltd.		16,000,000		100		121,553		223,821		20,289
KB Investment Co., Ltd.		8,951,797		100		104,910		143,259		4,939
KB Credit Information Co., Ltd.		1,252,400		100		23,621		28,533		(578	)
KB Data Systems Co., Ltd.		800,000		100		6,334		28,388		(140	)
Total		—		—		20,790,481		371,094,803		1,996,916

(1) Based on K-IFRS (on a separate basis)

(2) KB Insurance was added as a non-consolidated first-tier subsidiary on June 24, 2015.

(3) Hyundai Securities was added as a non-consolidated first-tier subsidiary on May 31, 2016.

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7.5. Related Party Transactions

7.5.1. Purchase of capital securities issued by KB Capital Co., Ltd.

	(Unit: billions of Won)
Issuer	Relationship	Type	Issue Price		Issue Date	Interest Rate			Maturity Date	Use of Proceeds
KB Capital Co., Ltd.	Subsidiary	No. 299 Private Placement of Capital Securities in Won		50	March 27, 2015		5.011	%	March 27, 2045 (may be extended)	Working capital
	(Unit: billions of Won)
Issuer	Relationship	Type	Issue Price		Issue Date	Interest Rate			Maturity Date	Use of Proceeds
KB Capital Co., Ltd.	Subsidiary	No. 320 Private Placement of Capital Securities in Won		50	September 24, 2015		4.606	%	September 24, 2045 (may be extended)	Working capital
	(Unit: billions of Won)
Issuer	Relationship	Type	Issue Price		Issue Date	Interest Rate			Maturity Date	Use of Proceeds
KB Capital Co., Ltd.	Subsidiary	No. 323 Private Placement of Capital Securities in Won		50	March 29, 2016		4.396	%	March 29, 2046 (may be extended)	Working capital

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	(Unit: billions of Won)
Issuer	Relationship	Type	Issue Price		Issue Date	Interest Rate			Maturity Date	Use of Proceeds
KB Capital Co., Ltd.	Subsidiary	No. 352 Private Placement of Capital Securities in Won		50	June 28, 2016		4.064	%	June 28, 2046 (may be extended)	Working capital

7.5.2. Prepayments and Loans to Subsidiaries

	(Unit: billions of Won)
Name	Relationship		Account		Loan Amount		Current Balance		Interest Rate	Maturity
KB Investment Co., Ltd.		Subsidiary		Loans		20		0	CD 3M + 94 bps	Repaid on February 23, 2015

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

	KB Financial Group Inc.
	(Registrant)
Date: November 14, 2016	By: /s/ Jungsoo Huh
	(Signature)
	Name:	Jungsoo Huh
	Title:	Senior Managing Director

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