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 August 2018

Commission File Number: 000-53445

KB Financial Group Inc.

(Translation of registrant’s name into English)

26, Gukjegeumyung-ro 8-gil, Yeongdeungpo-gu, Seoul 07331, 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  ☒             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 First Half of 2018 (Consolidated)

3. Exhibit 99.2 KB Financial Group Review Report for the First Half of 2018 (Separate)

TABLE OF CONTENTS

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

Summary of 2018 First Half Business Report

On August 14, 2018, KB Financial Group Inc. (“KB Financial Group”) filed its business report for the first half of 2018 (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 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.

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. (“KB Life Insurance”), formerly a second-tier subsidiary, as a first-tier subsidiary

• September 28, 2009

Added Burrill-KB Life Sciences Fund Ltd. 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 Private Equity Fund No. 3 as a second-tier subsidiary

• December 13, 2010

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

• 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. (“KB Investment & Securities”)

• 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. (“KB Savings Bank”) 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, 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

• March 20, 2014

Added KB Capital Co., Ltd. (“KB Capital”) 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. (“KB Insurance”) 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 LIG Investment & Securities, Co., Ltd., a second-tier subsidiary

• 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

• November 29, 2016

Established KB Golden Life Care Co., Ltd. as a second-tier subsidiary

• December 22, 2016

Established KB Private Equity Fund III as a second-tier subsidiary

• December 30, 2016

Purchased new shares of KB Insurance in a rights offering, which increased the Company’s shareholding in KB Insurance from 33.29% to 39.81%

• December 30, 2016

Merged KB Investment & Securities with and into Hyundai Securities, with Hyundai Securities as the surviving entity, then changed its name to KB Securities Co., Ltd. (“KB Securities”)

• January 4, 2017

Converted Kookmin Bank Hong Kong Ltd. into Kookmin Bank Hong Kong Branch (Liquidation in progress)

• February 8, 2017

Added KB KOLAO LEASING Co., Ltd. as a second-tier subsidiary

• March 8, 2017

Added KB Microfinance Myanmar Co., Ltd. as a second-tier subsidiary

• March 22, 2017

Liquidated KBIC Private Equity Fund No. 3, a second-tier subsidiary

• May 19, 2017

Conducted a tender offer, which increased the Company’s shareholding in KB Insurance from 39.81% to 94.30%.

• May 19, 2017

Conducted a tender offer, which increased the Company’s shareholding in KB Capital from 52.02% to 79.70%

• June 20, 2017

Liquidated Korea GCC Global Cooperation Private Equity Fund, a second-tier subsidiary

• July 7, 2017

Converted KB Insurance and KB Capital into wholly-owned subsidiaries of the Company through comprehensive stock swaps

• September 29, 2017

Added KB Asset Management Singapore Pte. Ltd. as a second-tier subsidiary (changed from a second-tier subsidiary of KB Securities to a first-tier subsidiary of KB Asset Management Co., Ltd.)

• October 9, 2017

Added Maritime Securities Incorporation as a second-tier subsidiary

• October 16, 2017

Disposed of Hyundai Savings Bank, Co., Ltd., a second-tier subsidiary

• December 22, 2017

Disposed of Hyundai Asset Management, Co., Ltd., a second-tier subsidiary

• January 17, 2018

Added KB-TS Technology Venture Private Equity Fund as a second-tier subsidiary (KB Securities, Kookmin Bank and KB Capital hold 16%, 30% and 10%, respectively)

• May 16, 2018

Converted Kookmin Bank International Ltd. into Kookmin Bank London Branch (Liquidation in progress)

• July 6, 2018

Liquidated Hyundai-Tongyang Agrifood Private Equity Fund, a second-tier subsidiary

1.3. Overview of the Business Group

(As of June 30, 2018)
Type	Name of Company	Controlling Company	Remarks
Holding Company	KB Financial Group	—	Listed
1st Tier Subsidiaries	Kookmin Bank	KB Financial Group	Not listed
	KB Securities Co., Ltd.	KB Financial Group	Not listed
	KB Insurance Co., Ltd.	KB Financial Group	Not listed
	KB Kookmin Card 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	Not 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 Cambodia PLC	Kookmin Bank	Not listed (Overseas)
	Kookmin Bank (China) Ltd.	Kookmin Bank	Not listed (Overseas)
	KB Microfinance Myanmar Co., Ltd.	Kookmin Bank	Not listed (Overseas)
	KBFG Securities America Inc.	KB Securities	Not listed (Overseas)
	KB Securities Hong Kong Ltd.	KB Securities	Not listed (Overseas)
	Hyundai-Tongyang Agrifood Private Equity Fund*	KB Securities	Not listed
	Keystone-Hyundai Securities No. 1 Private Equity Fund	KB Securities	Not listed
	KB-IGen Private Equity Fund No.1	KB Securities	Not listed
	KB Private Equity Fund III	KB Securities	Not listed

KB SECURITIES VIETNAM JOINT STOCK COMPANY	KB Securities	Not listed (Overseas)
KB-TS Technology Venture Private Equity Fund	KB Securities	Not listed
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)
KB Golden Life Care Co., Ltd.	KB Insurance	Not listed
KB Asset Management Singapore Pte. Ltd.	KB Asset Management	Not listed (Overseas)
KB KOLAO LEASING Co., Ltd.	KB Capital	Not listed (Overseas)
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

* Liquidation completed and registered on July 6, 2018

1.4. Capital Structure

1.4.1. Common Shares

Changes in Capital

Not included in the half-year business reports.

Number of Shares

(As of June 30, 2018)					(Unit: shares)
	Type
	Common Stock		Other Stock		Total
Shares Authorized for Issuance		1,000,000,000		—		1,000,000,000
Shares Issued (A)		418,111,537		—		418,111,537
Treasury Shares (B)		21,877,863		—		21,877,863
Shares Outstanding (A-B)		396,233,674		—		396,233,674

Note: The board of directors of the Company resolved to enter into a trust agreement to acquire treasury shares on February 4, 2016, August 2, 2016 and November 24, 2017. For more information, please refer to the Company’s reports on Form 6-K furnished to the Securities and Exchange Commission on each respective date.

1.4.2. Voting Rights

(As of June 30, 2018)
Items		Number of Shares		Notes
Total number of issued shares	Common shares		418,111,537		—
	Preferred shares		—		—
Shares without voting rights	Common shares		21,877,863		Treasury shares
	Preferred 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		396,233,674		—
	Preferred shares		—		—

1.5. Dividends

Not included in the half-year business reports.

2. Business

2.1. Results of Operations

							(Unit: in millions of Won)
	For the six months ended June 30, 2018			For the six months ended June 30, 2017			For the year ended December 31, 2017			For the year ended December 31, 2016
Net interest income		4,340,155			3,917,296			8,246,614			6,715,606
Interest income		6,558,014			5,690,587			11,919,057			10,334,959
Interest expense		(2,217,859	)		(1,773,291	)		(3,672,443	)		(3,619,353	)
Net fee and commission income		1,224,709			1,030,848			2,050,024			1,584,892
Fee and commission income		2,286,211			1,931,049			3,988,250			3,150,877
Fee and commission expense		(1,061,502	)		(900,201	)		(1,938,226	)		(1,565,985	)
Net insurance income		321,019			207,158			593,710			(117,803	)
Insurance income		5,996,109			3,175,417			8,970,992			1,201,352
Insurance expense		(5,675,090	)		(2,968,259	)		(8,377,282	)		(1,319,155	)
Net gains(losses) on financial assets/liabilities at fair value through profit or loss (under Korean IFRS 1039)		—			103,559			203,724			(321,845	)
Net gains(losses) on financial assets/liabilities at fair value through profit or loss		216,718			—			—			—
Net other operating expenses		(526,385	)		(458,584	)		(901,890	)		(415,908	)
General and administrative expenses		(2,743,731	)		(2,489,592	)		(5,628,664	)		(5,228,711	)
Operating profit before provision for credit losses		2,832,485			2,310,685			4,563,518			2,216,231
Provision for credit losses		(281,329	)		(307,698	)		(548,244	)		(539,283	)
Net operating profit		2,551,156			2,002,987			4,015,274			1,676,948

Note: 1) Based on K-IFRS (on a consolidated basis).

2) The consolidated financial information for the six months ended June 30, 2018 is based on K-IFRS 1109. The financial information for previous periods has not been restated.

3) For the six months ended June 30, 2017 and for the years ended December 31, 2017 and 2016, interest income from financial assets/liabilities at fair value through profit or loss has been reclassified from net gains(losses) on financial assets/liabilities at fair value through profit or loss to interest income.

2.2. Sources and Uses of Funds

2.2.1. Sources of Funds

														(Unit: in millions of Won)
		For the six months ended June 30, 2018						For the year ended December 31, 2017						For the year ended December 31, 2016
		Average Balance		Interest Rate (%)		Ratio (%)		Average Balance		Interest Rate (%)		Ratio (%)		Average Balance		Interest Rate (%)		Ratio (%)
Won Currency	Deposits		232,886,537		1.33		52.69		219,970,681		1.20		54.26		207,194,480		1.32		60.76
	Certificate of deposit		3,027,897		1.80		0.69		2,862,817		1.57		0.71		3,386,647		1.65		0.99
	Borrowings		9,826,843		1.55		2.22		9,306,125		1.41		2.30		6,803,292		1.54		2.00
	Call money		1,595,835		1.50		0.36		2,165,151		1.26		0.53		1,414,780		1.35		0.41
	Debentures		43,810,066		2.20		9.91		36,393,274		2.17		8.98		30,075,804		2.49		8.82
	Others		16,431,897		1.54		3.72		13,735,978		1.41		3.38		7,700,215		1.45		2.26
Subtotal			307,579,075		1.48		69.59		284,434,026		1.35		70.16		256,575,218		1.47		75.24
Foreign Currency	Deposits		10,977,302		1.01		2.48		10,156,743		0.80		2.51		8,713,640		0.53		2.56
	Borrowings		7,343,318		1.81		1.66		6,438,408		1.17		1.59		5,644,047		0.78		1.66
	Call money		709,176		2.03		0.16		1,239,627		1.39		0.31		1,161,517		0.72		0.34
	Debentures		3,749,854		3.25		0.85		3,374,998		2.71		0.83		4,139,036		2.55		1.21
	Others		284,144		0.64		0.07		321,263		0.56		0.07		222,098		0.94		0.06
Subtotal			23,063,794		1.66		5.22		21,531,039		1.24		5.31		19,880,338		1.04		5.83
Others	Total shareholders’ equity		35,174,607		—		7.96		34,785,839		—		8.58		30,308,008		—		8.89
	Allowances		722,641		—		0.16		829,075		—		0.20		748,594		—		0.22
	Others		75,440,318		—		17.07		63,855,888		—		15.75		33,476,080		—		9.82
Subtotal			111,337,566		—		25.19		99,470,802		—		24.53		64,532,682		—		18.93
Total			441,980,435		—		100.00		405,435,867		—		100.00		340,988,238		—		100.00

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

2.2.2. Uses of Funds

																		(Unit: in millions of Won)
		For the six months ended June 30, 2018								For the year ended December 31, 2017								For the year ended December 31, 2016
		Average Balance			Interest Rate (%)		Ratio (%)			Average Balance			Interest Rate (%)		Ratio (%)			Average Balance			Interest Rate (%)		Ratio (%)
Won Currency	Due from banks		4,868,770			1.55		1.10			6,757,757			1.44		1.67			6,075,873			1.52		1.78
	Securities		92,918,797			2.66		21.02			80,406,670			1.81		19.83			55,999,995			2.12		16.42
	Loans		263,707,209			3.37		59.66			247,117,982			3.28		60.95			225,153,667			3.15		66.03
	Guarantee payments under payment guarantee		8,288			2.84		—			17,008			0.66		—			28,005			1.16		0.01
	Call loan		484,863			1.42		0.11			315,950			1.28		0.08			399,843			1.43		0.12
	Private placement corporate bonds		1,414,313			3.29		0.32			1,801,681			4.00		0.44			1,081,692			3.99		0.32
	Credit cards		16,252,943			8.26		3.68			14,877,741			8.32		3.67			12,823,200			8.66		3.76
	Others		4,333,537			3.82		0.99			4,123,143			3.87		1.02			5,061,229			4.96		1.48
	Allowance		(2,434,192	)		—		(0.55	)		(2,116,366	)		—		(0.52	)		(2,182,313	)		—		(0.64	)
Subtotal			381,554,528			3.41		86.33			353,301,566			3.15		87.14			304,441,191			3.21		89.28
Foreign Currency	Due from banks		3,425,352			1.27		0.78			2,862,165			1.06		0.71			2,553,722			0.75		0.75
	Securities		12,625,285			2.36		2.86			10,013,637			3.19		2.47			3,792,545			2.61		1.11
	Loans		7,084,027			2.91		1.60			7,136,381			2.29		1.76			8,125,102			1.76		2.38
	Call loan		3,136,706			2.16		0.71			2,909,920			1.53		0.72			2,220,839			0.65		0.65
	Bills bought		3,653,408			1.54		0.83			3,166,307			1.51		0.78			2,768,692			1.30		0.81
	Allowance		(286,224	)		—		(0.07	)		(173,771	)		—		(0.04	)		(328,130	)		—		(0.10	)
	Others		79,103			—		0.01			72,297			—		0.01			24,789			—		0.02
Subtotal			29,717,657			2.28		6.72			25,986,936			2.35		6.41			19,157,559			1.64		5.62
Others	Cash		1,788,034			—		0.40			1,726,448			—		0.43			1,724,701			—		0.51
	Fixed assets held for business		5,350,424			—		1.21			5,826,159			—		1.44			3,464,031			—		1.02
	Others		23,569,792			—		5.34			18,594,758			—		4.58			12,200,756			—		3.57
Subtotal			30,708,250			—		6.95			26,147,365			—		6.45			17,389,488			—		5.10
Total			441,980,435			—		100.00			405,435,867			—		100.00			340,988,238			—		100.00

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

2.3. Other Information to Consider in Making an Investment Decision

2.3.1. Capital Adequacy

KB Financial Group							(Unit: in billions of Won)
	As of June 30, 2018(1)			As of December 31, 2017			As of December 31, 2016
Total Capital (A)		34,205			32,402			31,103
Risk-weighted assets (B)		225,953			212,777			203,649
BIS ratio (A/B)		15.14	%		15.23	%		15.27	%

* Note: Calculated in accordance with Basel III

(1) Preliminary figures

Kookmin Bank							(Unit: in billions of Won)
	As of June 30, 2018			As of December 31, 2017			As of December 31, 2016
Total Capital (A)		27,312			25,914			24,579
Risk-weighted assets (B)		171,532			161,825			150,649
BIS ratio (A/B)		15.92	%		16.01	%		16.32	%

* Note: Calculated in accordance with Basel III

KB Securities							(Unit: in billions of Won)
	As of June 30, 2018			As of December 31, 2017			As of December 31, 2016
Net Operating Capital (A)		3,080			3,211			2,844
Total amount at risk (B)		1,059			1,048			866
Maintenance equity margin (C)		134			134			134
Net capital ratio (A-B)/(C)		1,503.50	%		1,609.03	%		1,471.73	%
Capital surplus (A-B)		2,021			2,163			1,978

* Note: Calculated in accordance with amended net capital ratio standards effective as of January 2015

KB Insurance							(Unit: in billions of Won)
	As of June 30, 2018(1)			As of December 31, 2017			As of December 31, 2016
Available capital (A)		3,173			3,080			2,774
Required capital (B)		1,706			1,618			1,644
RBC ratio(2) (A/B)		186.0	%		190.3	%		168.7	%

(1) Preliminary figures

(2) RBC ratio: Risk-Based Capital ratio

2.3.2. Credit Ratings

			(As of June 30, 2018)
Date of Rating	Type	Credit Rating	Rating Company (Rating Range)
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)
11/25/2016	Debentures	AAA	Korea Ratings (AAA ~ D) / KIS Ratings (AAA ~ D) / NICE Investors Service (AAA ~ D)
1/24/2017	Debentures	AAA	Korea Ratings (AAA ~ D) / KIS Ratings (AAA ~ D) / NICE Investors Service (AAA ~ D)
2/24/2017	Debentures	AAA	Korea Ratings (AAA ~ D) / KIS Ratings (AAA ~ D) / NICE Investors Service (AAA ~ D)
4/5/2017	Debentures	AAA	Korea Ratings (AAA ~ D) / KIS Ratings (AAA ~ D) / NICE Investors Service (AAA ~ D)
5/23/2017	Debentures	AAA	Korea Ratings (AAA ~ D) / KIS Ratings (AAA ~ D) / NICE Investors Service (AAA ~ D)
6/23/2017	Debentures	AAA	Korea Ratings (AAA ~ D) / KIS Ratings (AAA ~ D) / NICE Investors Service (AAA ~ D)
6/23/2017	Commercial Paper	A1	Korea Ratings (A1 ~ D) / KIS Ratings (A1 ~ D) / NICE Investors Service (A1 ~ D)
8/28/2017	Debentures	AAA	Korea Ratings (AAA ~ D) / KIS Ratings (AAA ~ D) / NICE Investors Service (AAA ~ D)
1/24/2018	Debentures	AAA	Korea Ratings (AAA ~ D) / KIS Ratings (AAA ~ D) / NICE Investors Service (AAA ~ D)
2/27/2018	Debentures	AAA	Korea Ratings (AAA ~ D) / KIS Ratings (AAA ~ D) / NICE Investors Service (AAA ~ D)
4/5/2018	Debentures	AAA	Korea Ratings (AAA ~ D) / KIS Ratings (AAA ~ D) / NICE Investors Service (AAA ~ D)
6/11/2018	Debentures	AAA	Korea Ratings (AAA ~ D) / KIS Ratings (AAA ~ D) / NICE Investors Service (AAA ~ D)
6/25/2018	Commercial Paper	A1	Korea Ratings (A1 ~ D) / KIS Ratings (A1 ~ D) / NICE Investors Service (A1 ~ D)

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 19, 2018	407

3. Financial Information

3.1. Consolidated Financial Information

3.1.1. Consolidated Statements of Financial Position

			(Unit: in millions of Won)
	As of June 30, 2018	As of December 31, 2017		As of December 31, 2016
Cash and due from financial institutions	19,776,387	19,817,825		17,884,863
Financial assets at fair value through profit or loss (under Korean IFRS 1039)	—	32,227,345		27,858,364
Financial assets at fair value through profit or loss	48,045,825	—		—
Derivative financial assets	2,487,151	3,310,166		3,381,935
Loans at amortized cost	303,704,275	290,122,838		265,486,134
Financial investments	60,510,909	66,608,243		45,147,797
Investments in associates and joint ventures	358,850	335,070		1,770,673
Property and equipment	4,069,484	4,201,697		3,627,268
Investment property	1,768,058	848,481		755,011
Intangible assets	2,834,675	2,943,060		652,316
Net defined benefit assets	—	894		—
Current income tax assets	14,274	6,324		65,738
Deferred income tax assets	1,729	3,991		133,624
Assets held for sale	18,975	155,506		52,148
Other assets	19,746,798	16,204,169		8,857,785
Total assets	463,337,390	436,785,609		375,673,656
Financial liabilities at fair value through profit or loss (under Korean IFRS 1039)	—	12,023,058		12,122,836
Financial liabilities at fair value through profit or loss	14,252,876	—		—
Derivative financial liabilities	3,113,717	3,142,765		3,807,128
Deposits	265,290,471	255,800,048		239,729,695
Debts	32,562,412	28,820,928		26,251,486
Debentures	49,436,407	44,992,724		34,992,057
Provisions	535,940	568,033		537,717
Net defined benefit liabilities	210,360	154,702		96,299
Current income tax liabilities	487,437	433,870		441,812
Deferred income tax liabilities	509,641	533,069		103,482
Insurance contract liabilities	32,742,343	31,801,275		7,290,844
Other liabilities	29,602,271	24,470,308		19,038,897
Total liabilities	428,743,875	402,740,780		344,412,253
Equity attributable to shareholders of the parent company	34,587,162	34,038,685		30,998,044

	As of June 30, 2018			As of December 31, 2017			As of December 31, 2016
Share capital		2,090,558			2,090,558			2,090,558
Capital surplus		17,122,969			17,122,228			16,994,902
Accumulated other comprehensive income		189,472			537,668			405,329
Retained earnings		16,120,357			15,044,204			12,229,228
Treasury shares		(936,194	)		(755,973	)		(721,973	)
Non-controlling interests		6,353			6,144			263,359
Total equity		34,593,515			34,044,829			31,261,403
Total liabilities and equity		463,337,390			436,785,609			375,673,656

Note: The consolidated financial information as of June 30, 2018 is based on K-IFRS 1109. The financial information as of prior dates has not been restated.

3.1.2. Consolidated Statements of Comprehensive Income

				(Unit: in millions of Won, except per share amounts)
	For the six months ended June 30, 2018			For the six months ended June 30, 2017			For the year ended December 31, 2017			For the year ended December 31, 2016
Net interest income		4,340,155			3,917,296			8,246,614			6,715,606
Net fee and commission income		1,224,709			1,030,848			2,050,024			1,584,892
Net insurance income(expense)		321,019			207,158			593,710			(117,803	)
Net gains(losses) on financial assets/liabilities at fair value through profit or loss (under Korean IFRS 1039)		—			103,559			203,724			(321,845	)
Net gains(losses) on financial assets/liabilities at fair value through profit or loss		216,718			—			—			—
Net other operating expenses		(526,385	)		(458,584	)		(901,890	)		(415,908	)
General and administrative expenses		(2,743,731	)		(2,489,592	)		(5,628,664	)		(5,228,711	)
Operating profit before provision for credit losses		2,832,485			2,310,685			4,563,518			2,216,231
Provision for credit losses		(281,329	)		(307,698	)		(548,244	)		(539,283	)
Net operating income		2,551,156			2,002,987			4,015,274			1,676,948
Net non-operating income(loss)		95,368			209,282			123,150			951,707
Profit before income tax		2,646,524			2,212,269			4,138,424			2,628,655
Income tax expense		(731,338	)		(319,931	)		(794,963	)		(438,475	)
Profit for the period		1,915,186			1,892,338			3,343,461			2,190,180
Other comprehensive income (loss) for the period, net of tax		1,286			299,121			136,226			(24,937	)
Total comprehensive income for the period		1,916,472			2,191,459			3,479,687			2,165,243
Profit attributable to:		1,915,186			1,892,338			3,343,461			2,190,180
Shareholders of the parent company		1,914,983			1,860,182			3,311,438			2,143,744
Non-controlling interests		203			32,156			32,023			46,436
Total comprehensive income for the period attributable to:		1,916,472			2,191,459			3,479,687			2,165,243
Shareholders of the parent company		1,916,263			2,156,398			3,445,285			2,118,829
Non-controlling interests		209			35,061			34,402			46,414
Earnings per share
Basic earnings per share (Won)		4,826			4,688			8,305			5,588
Diluted earnings per share (Won)		4,796			4,665			8,257			5,559

Note: 1) The consolidated financial information for the six months ended June 30, 2018 is based on K-IFRS 1109. The financial information for previous periods has not been restated.

          2) For the six months ended June 30, 2017 and for the years ended December 31, 2017 and 2016, interest income from financial assets/liabilities at fair value through profit or loss has been reclassified from net gains(losses) on financial assets/liabilities at fair value through profit or loss to interest income.

3.2. Separate Financial Information

3.2.1. Separate Statements of Financial Position

	(Unit: in millions of Won)
		As of June 30, 2018		As of December 31, 2017		As of December 31, 2016
Cash and due from financial institutions		467,246		245,400		115,065
Financial assets at fair value through profit or loss (under Korean IFRS 1039)		—		284,485		246,656
Financial assets at fair value through profit or loss		286,433		—		—
Loans at amortized cost		10,000		10,000		29,415
Investments in subsidiaries		24,062,116		24,062,116		21,392,745
Investments in associates		—		—		1,053,690
Property and equipment		728		697		469
Intangible assets		8,720		8,864		8,092
Net defined benefit assets		—		201		193
Deferred income tax assets		7,961		10,282		4,604
Other assets		611,357		480,789		519,223
Total assets		25,454,561		25,102,834		23,370,152
Debts		—		300,000		350,000
Debentures		5,642,417		5,162,600		3,474,200
Net defined benefit liabilities		840		—		—
Current income tax liabilities		482,391		308,854		419,607
Other liabilities		139,429		204,835		104,528
Total liabilities		6,265,077		5,976,289		4,348,335
Share capital		2,090,558		2,090,558		2,090,558
Capital surplus		14,742,814		14,742,814		14,656,168
Accumulated other comprehensive loss		(5,306	)	(5,233	)	(4,742	)
Retained earnings		3,297,612		3,054,379		2,998,923
Treasury Shares		(936,194	)	(755,973	)	(719,090	)
Total equity		19,189,484		19,126,545		19,021,817
Total liabilities and equity		25,454,561		25,102,834		23,370,152

Note: The consolidated financial information as of June 30, 2018 is based on K-IFRS 1109. The financial information as of prior dates has not been restated.

3.2.2. Separate Statements of Comprehensive Income

	(Unit: in millions of Won, except per share amounts)
	For the six months ended June 30, 2018			For the six months ended June 30, 2017			For the year ended December 31, 2017			For the year ended December 31, 2016
Net interest expense		(57,019	)		(42,994	)		(97,218	)		(55,924	)
Net fee and commission expense		(3,631	)		(5,001	)		(7,808	)		(7,214	)
Net gains on financial assets at fair value through profit or loss (under Korean IFRS 1039)		—			4,885			745			5,272
Net gains on financial assets at fair value through profit or loss		8,732			—			—			—
Net other operating income		1,089,556			709,544			709,544			694,908
General and administrative expenses		(25,228	)		(26,611	)		(57,485	)		(46,734	)
Operating profit before provision for credit losses		1,012,410			639,823			547,778			590,308
Provision for credit losses		—			—			—			—
Operating profit		1,012,410			639,823			547,778			590,308
Net non-operating expense		(101	)		(40	)		125			(340	)
Profit before income tax		1,012,309			639,783			547,903			589,968
Income tax benefit (expense)		(2,348	)		533			5,522			164
Profit for the period		1,009,961			640,316			553,425			590,132
Other comprehensive income (loss) for the period, net of tax		(73	)		(56	)		(491	)		237
Total comprehensive income for the period		1,009,888			640,260			552,934			590,369
Earnings per share
Basic earnings per share (Won)		2,545			1,614			1,388			1,538
Diluted earnings per share (Won)		2,529			1,606			1,380			1,530

Note: The consolidated financial information for the six months ended June 30, 2018 is based on K-IFRS 1109. The financial information for previous periods has not been restated.

3.3. Other Selected Financial Data

3.3.1. Won-denominated Liquidity Ratio

	(Unit: in millions of Won, %)
Category	As of June 30, 2018		As of December 31, 2017		As of December 31, 2016
Current assets in Won (A)		307,817		47,253		59,429
Current liabilities in Won (B)		4,593		6,792		5,554
Liquidity ratio (A/B)		6,701.88		695.72		1,070.02

Note: 1) Based on K-IFRS (on a separate basis).

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

3.3.2. Profitability Ratios

	(Unit: %)
Category	For the six months ended June 30, 2018		For the year ended December 31, 2017		For the year ended December 31, 2016
Net income as a percentage of average total assets (ROA)		0.85		0.82		0.63
Net income as a percentage of average shareholders’ equity  (ROE)		11.24		10.18		7.26

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

3.3.3. 20 Largest Exposures of Kookmin Bank by Borrower

	(As of June 30, 2018)
Company	Credit extended
	(Unit: in billions of Won)
Samsung Electronics Co., Ltd.		1,861
LG Display Co., Ltd.		985
Korea Securities Finance Corp.		798
Kia Motors Corporation		730
Hyundai Capital Services, Inc.		662
Hyundai Steel Co., Ltd.		614
S-Oil Corporation		584
GS Caltex Corporation		581
Hyundai Motor Company		580
LG Electronics Inc.		573
Bank of Communications		522
SK Energy Co., Ltd.		453
Shinhan Financial Group Co., Ltd.		427
LS Nikko Copper Inc.		387
Shinsegae Inc.		373
Hankook Tire Co., Ltd.		368
Hyosung Corporation		361
Samsung Heavy Industries Co., Ltd.		357
Airport Railroad Co., Ltd.		338
KT Corporation		329
Total		11,883

3.3.4. 10 Largest Exposures of Kookmin Bank by Chaebol Group

	(As of June 30, 2018)
Group	Credit extended
	(Unit: in billions of Won)
Hyundai Motor		4,357
Samsung		3,538
LG		2,178
SK		2,161
Lotte		1,785
Hanwha		1,389
GS		956
LS		919
CJ		761
Hyundai Heavy		728
Total		18,772

3.3.5. Kookmin Bank’s Loan Concentration by Industry

	(As of June 30, 2018)
Industry	Total Credit		Percentage of Total Credit
	(Unit: in billions of Won, %)
Manufacturing		43,633		34.24
Real estate		26,333		20.66
Retail and wholesale		17,412		13.66
Hotel, lodging and food service		8,248		6.47
Construction		3,037		2.38
Financial institutions		2,854		2.24
Others		25,941		20.35
Total		127,457		100.00

3.3.6. Top 20 Non-Performing Loans of Kookmin Bank

		(As of June 30, 2018)
Borrower	Industry	Total Credit		Allowance for Loan Losses
		(Unit: in billions of Won)
Borrower A	Construction		99.1		97.2
Borrower B	Construction		68.2		67.5
Borrower C	Manufacturing		65.8		63.9
Borrower D	Information and communication		55.3		51.5
Borrower E	Shipbuilding		51.3		37.0
Borrower F	Real estate and leasing		41.6		41.7
Borrower G	Construction		40.6		39.8
Borrower H	Transportation		39.1		17.0
Borrower I	Shipping		23.8		23.5
Borrower J	Manufacturing		17.7		6.0
Borrower K	Information and communication		14.3		13.0
Borrower L	Retail and wholesale		12.9		9.9
Borrower M	Retail and wholesale		12.7		8.2
Borrower N	Manufacturing		9.4		9.1
Borrower O	Manufacturing		8.8		0.2
Borrower P	Construction		8.2		7.5
Borrower Q	Manufacturing		7.9		4.8
Borrower R	Manufacturing		7.8		3.8
Borrower S	Manufacturing		6.3		4.3
Borrower T	Professional, Scientific, and Technical		6.0		0.4
Total			596.8		506.1

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.

4. Independent Public Accountants

4.1. Audit / Review Services

Period	Auditor	Activity	Compensation(1)     (in millions of Won)	Accrued Time (hours)
January 1 to June 30, 2018	Samil PricewaterhouseCoopers	Quarterly / first half and annual review & audit, review of internal accounting management system (including audit of internal control over financial reporting)	949		3,141
January 1 to December 31, 2017	Samil PricewaterhouseCoopers	Quarterly / first half and annual review & audit, review of internal accounting management system (including audit of internal control over financial reporting)	856		11,080
January 1 to December 31, 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		10,505

(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 June 30, 2018	Samil PricewaterhouseCoopers	PCAOB audit of consolidated financial statements and internal control over financial reporting		May 1, 2018 to April 30, 2019		571
January 1 to December 31, 2017	Samil PricewaterhouseCoopers	PCAOB audit of consolidated financial statements and internal control over financial reporting		May 1, 2017 to April 30, 2018		540
January 1 to December 31, 2016	Samil PricewaterhouseCoopers	PCAOB audit of consolidated financial statements and internal control over financial reporting		May 1, 2016 to April 30, 2017		459

(1) Excluding value-added taxes.

5. Corporate Governance and Affiliated Companies

5.1. Board of Directors & Committees under the Board

As of June 30, 2018, our board of directors consisted of nine directors, comprising one executive director, one non-standing director and seven 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;

• Subsidiaries’ CEO Director Nominating Committee;

• CEO Nominating 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 Compensation 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)		9 (7)		2,500		—

(1) Represents the total number of applicable persons as of June 30, 2018.

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

5.3.2. Total Compensation Paid

(As of June 30, 2018)	(Unit: in millions of Won)
Total number of persons(1)	Total payment(2)		Average payment per person(3)		Notes
9		730		81		—

(1) Represents the total number of applicable persons as of June 30, 2018.

(2) Represents the total amount paid (rounded to the nearest million) for the six months ended June 30, 2018.

(3) Represents (i) the total amount paid (rounded to the nearest million) for the six months ended June 30, 2018, divided by (ii) the annualized number of applicable persons for the applicable reporting period.

*Suk Ho Sonu, Myung Hee Choi and Kouwhan Jeong were newly appointed as non-executive directors on March 23, 2018.

*Young Hwi Choi, Michael Byungnam Lee and Eunice Kyonghee Kim retired on March 23, 2018.

5.3.3. Compensation Breakdown

(As of June 30, 2018)	(Unit: in millions of Won)
	Total number of persons(1)		Total payment (2)(4)		Average payment per person (3)		Notes
Registered Directors (excluding non-executive directors and Audit Committee members)		2		451		225		—
Non-executive Directors (excluding Audit Committee members)		3		127		42		—
Audit Committee members		4		152		38		—
Internal Auditor		—		—		—		—

(1) Represents the total number of applicable persons as of June 30, 2018.

(2) Represents the total amount paid (rounded to the nearest million) for the six months ended June 30, 2018.

(3) Represents (i) the total amount paid (rounded to the nearest million) for the six months ended June 30, 2018, divided by (ii) the annualized number of applicable persons for the applicable reporting period.

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

5.3.4. Compensation exceeding Won 500 million – Individual basis

No director received total compensation exceeding Won 500 million in the first half of 2018.

5.4. Top 5 Highest-Paid Individuals

5.4.1. Compensation exceeding Won 500 million – Individual basis

(As of June 30, 2018)			(Unit: in millions of Won)
Name	Position	Total Payment	Other Compensation
Kyung Yup Cho	Senior Managing Director	557	16,945 restricted stock units *Granted pursuant to a long- and short-term performance-based evaluation from 2013 to 2017. The actual payment amount will be determined in the future based on the fair market price of our shares.

5.4.2. Criteria and method of calculating compensation

(As of June 30, 2018)				(Unit: in millions of Won)
Name	Compensation Type	Classification	Total Compensation	Calculation criteria and method
Kyung Yup Cho	Earned Income	Salary	105	The base salary of Won 210 was determined based on the Company’s internal policy, “Executive Officers’ Operational Regulations,” and a monthly salary of Won 17.5 million was paid each month in the first half (January to June) of 2018.

Bonus	449	Won 104 million was based on performance in 2017 and paid as a short-term performance-based incentive payment and Won 345 million was based on performance from 2015 to 2017 and paid as a long-term performance-based incentive payment. The long- and short-term performance-based incentive payment programs and the performance evaluation are determined based on resolutions of the Evaluation & Compensation Committee, which serves under the board of directors. The annual performance evaluation index comprises financial results and non-financial results related to applicable work. The amount of the short-term performance-based incentive payment is determined based on the aggregate score of such index items and is within the range of 0%-120% of the base salary. With respect to financial results, the achievements considered included the enhancement of the Company’s business portfolio by successfully adding wholly-owned subsidiaries, KB Insurance and KB Capital, which helped the Company to exceed its goals for financial performance in 2017. With respect to non-financial results, the major achievements considered included enhancing the Company’s sustainability by conducting essential research. The long-term performance evaluation index comprises relative total shareholder returns, the Company’s performance, and the results of the work performed. The amount of the long-term performance-based incentive payment is determined based on the aggregate score of such index items and is within the range of 0%-100% of the base salary. The maximum number of shares of long-term performance-based incentive payment is determined based on the fair market price of the Company’s shares on the date of employment. The number of shares of long-term incentive payment is determined based on the aggregate score of the index items above for the previous two years. The actual payment amount is determined based on the fair market price of the Company’s shares on the date of payment. Regarding the long-term performance evaluation index, relative total shareholder return took into account the fact that the price of the Company’s shares increased more than the industry average during the term of the contract (July 17, 2015 to July 16, 2017), and the Company’s performance and the results of the work performed reflected the arithmetic average of the annual evaluation results.
Other earned income	3	Other fringe benefits

5.5. Affiliated Companies

5.5.1. 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 June 30, 2018 are as follows.

1) Kookmin Bank (100.00%)

2) KB Securities Co., Ltd. (100.00%)

3) KB Insurance Co., Ltd. (100.00%)

4) KB Kookmin Card Co., Ltd. (100.00%)

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

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

7) KB Capital Co., Ltd. (100.00%)

8) KB Savings Bank Co., Ltd. (100.00%)

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

10) KB Investment Co., Ltd. (100.00%)

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

12) KB Data Systems Co., Ltd. (100.00%)

6. Directors, Senior Management and Employees

6.1. Executive Directors

As of June 30, 2018, we had one executive director. The name, position and the end of the term of our executive director and the number of shares of our common stock he owned as of June 30, 2018 are set forth below.

Name	Date of Birth		Position		Common Shares Owned		End of Term
Jong Kyoo Yoon		October 1955		Chairman & Chief Executive Officer		18,000		November 20, 2020

6.2. Non-standing Directors

As of June 30, 2018, 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 our common stock he owned as of June 30, 2018 are set forth below.

Name	Date of Birth		Position		Common Shares Owned		End of Term
Yin Hur		December 1961		Non-standing Director		2,000		March 22, 2020

6.3. Non-executive Directors

Our non-executive directors, the end of their terms and the number of shares of our common stock they respectively owned as of June 30, 2018 are as follows.

Name	Date of Birth	Position	Common Shares Owned		End of Term
Suk Ryul Yoo	April 1950	Non-executive Director		—	March 22, 2019
Stuart B. Solomon	July 1949	Non-executive Director		—	March 23, 2019
Suk Ho Sonu	September 1951	Non-executive Director		—	March 22, 2020
Myung Hee Choi	February 1952	Non-executive Director		—	March 22, 2020
Kouwhan Jeong	September 1953	Non-executive Director		—	March 22, 2020
Jae Ha Park	November 1957	Non-executive Director		—	March 22, 2019
Jongsoo Han	October 1960	Non-executive Director		—	March 22, 2019

6.4. Senior Management

In addition to our executive director who is also our executive officer, we had the following fifteen executive officers as of June 30, 2018.

Name	Date of Birth	Position	Common Shares Owned		End of Term
Ki Heon Kim	October 1955	Deputy President and Chief Information Technology Officer		—	December 31, 2018
Kyung Eun Yoon	May 1962	Deputy President and Head of the Capital Market Business Units		3,814	December 31, 2018

Jeong Rim Park	November 1963	Deputy President; Wealth Management Planning Department	540	December 31, 2018
Ki-Hwan Kim	March 1963	Senior Managing Director and Chief Finance Officer	321	December 31, 2018
Young-Tae Park	December 1961	Senior Managing Director and Chief Data Officer	450	December 31, 2018
Pil Kyu Im	March 1964	Senior Managing Director and Chief Compliance Officer	445	January 10, 2020
Kyung Yup Cho	September 1961	Senior Managing Director; KB Research	1500	December 31, 2018
Bo Youl Oh	January 1962	Senior Managing Director; Corporate and Investment Banking Planning Department	—	December 31, 2018
Young Hyuk Jo	April 1963	Senior Managing Director and Head of the Audit Department	461	December 31, 2018
Chang Kwon Lee	November 1965	Managing Director and Chief Strategy Officer	500	December 31, 2018
Hyun Jin Shin	February 1965	Managing Director and Chief Risk Management Officer	—	December 31, 2019
Dong Whan Han	January 1965	Managing Director and Chief Digital Innovation Officer	100	December 31, 2018
Nam Hoon Cho	June 1968	Managing Director and Chief Global Strategy Officer	—	December 31, 2018
Soon Bum Kwon(1)	October 1966	Managing Director and Chief Human Resources Officer	1,255	December 31, 2019
Chai Hyun Sung	September 1965	Managing Director and Chief Public Relations Officer	683	December 31, 2018

(1) Served as Chief Human Resources Officer from January 1, 2018 to April 4, 2018.

As of June 30, 2018, the following management also served as senior management at our subsidiaries.

Name	Subsidiary	Position	Appointment Date
Yin Hur	Kookmin Bank	President and Chief Executive Officer	November 2017
Kyung Eun Yoon	KB Securities	Chief Executive Officer	December 2016
Ki Heon Kim	KB Data Systems	Chief Executive Officer	January 2018
Jeong Rim Park	Kookmin Bank	Senior Executive Vice President; Wealth Management Group	January 2017
	KB Securities	Deputy President; Wealth Management Division	January 2017
Young-Tae Park	Kookmin Bank	Senior Managing Director; Data Strategy Division	January 2018
	KB Kookmin Card	Senior Managing Director; Data Strategy Division	January 2018
Bo Youl Oh	Kookmin Bank	Senior Managing Director Corporate and Investment Banking Customer Group	January 2018
	KB Securities	Deputy President; Investment Banking Division	January 2018
Dong Whan Han	Kookmin Bank	Managing Director; Digital Business Group	January 2017
Chai Hyun Sung	Kookmin Bank	Managing Director; Consumer Brand Strategy Group	January 2018
Chang Kwon Lee	KB Securities	Non-standing Director	February 2018
Ki-Hwan Kim	KB Insurance	Non-standing Director	February 2018
	KB Kookmin Card	Non-standing Director	February 2018

As of June 30, 2018, the following non-executive directors also served as a director at another company.

Name	Company	Position	Appointment Date
Suk Ryul Yoo	Jungmok	CEO	December 2013
Kouwhan Jeong	Nambujeil Law and Notary Office Inc.	President Attorney at Law	May 2016

6.5. Employees

The following table shows information regarding our employees as of June 30, 2018.

	(Unit: in millions of Won)
Number of Employees(A)	Average Tenure of Employees (months)		Total Amount of Annual Salaries(B)		Average Annual Salary per Person(B/A)
169		39		10,579		63

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 June 30, 2018.

	(Unit: shares, %)
Name	Number of Shares of Common Stock		Percentage of Total Issued Shares(1)
Korean National Pension Service		40,204,583		9.62
JP Morgan Chase Bank, N.A.(2)		25,755,140		6.16

(1) Based on 418,111,537 shares of our common stock issued as of December 31, 2017.

(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 June 30, 2018)	(Unit: shares, %)
Name of the Largest Shareholder	Date of Change in the Largest Shareholder/ Date of Change in Number of Shares Owned		Number of Shares of Common Stock		Percentage of Total Issued Shares(1)
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

(As of June 30, 2018)	(Unit: shares, %)
Name of the Largest Shareholder	Date of Change in the Largest Shareholder/ Date of Change in Number of Shares Owned		Number of Shares of Common Stock		Percentage of Total Issued Shares(1)
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
Korean National Pension Service		December 31, 2016		41,190,896		9.85
Korean National Pension Service		April 24, 2017		40,950,453		9.79
Korean National Pension Service		October 16, 2017		40,479,793		9.68
Korean National Pension Service		December 31, 2017		40,204,583		9.62

(1) Based on 418,111,537 total issued shares of common stock for dates on or after October 19, 2016, and 386,351,693 total issued shares of common stock for dates prior to October 19, 2016.

7.3. Employee Stock Ownership Association

(As of June 30, 2018)	(Unit: shares)
Company Name	Number of Shares of Common Stock Owned
KB Financial Group Inc.		13,405
Kookmin Bank		1,864,816
KB Securities Co., Ltd.		12,585
KB Insurance Co., Ltd.		47,893
KB Kookmin Card Co., Ltd.		104,034
KB Life Insurance Co., Ltd.		7,056
KB Asset Management Co., Ltd.		3,772
KB Capital Co., Ltd.		808
KB Savings Bank Co., Ltd.		1,045
KB Real Estate Trust Co., Ltd.		2,467
KB Investment Co., Ltd.		595
KB Credit Information Co., Ltd.		5,650
KB Data Systems Co., Ltd.		6,148
Total		2,070,274

7.4. Investments in Affiliated Companies

(As of June 30, 2018)							(Units: shares, %, millions of Won)
Company Name	Ending Balance						Total assets as of the latest fiscal year(1)		Net income (loss) for the latest fiscal year(1)
	Number of shares owned		Ownership		Book value
Kookmin Bank		404,379,116		100		14,821,721		323,419,161		2,262,916
KB Securities Co., Ltd.		298,620,424		100		3,342,391		36,079,842		271,534
KB Insurance Co., Ltd.		66,500,000		100		2,375,430		31,538,102		360,489
KB Kookmin Card Co., Ltd.		92,000,000		100		1,953,175		17,659,957		302,106
KB Life Insurance Co., Ltd.		91,200,000		100		485,314		9,125,712		18,955
KB Asset Management Co., Ltd.		7,667,550		100		96,312		197,641		52,279
KB Capital Co., Ltd.		21,492,128		100		573,811		8,736,903		120,109
KB Savings Bank Co., Ltd.		8,001,912		100		157,544		1,158,829		21,150
KB Real Estate Trust Co., Ltd.		16,000,000		100		121,553		246,685		36,407
KB Investment Co., Ltd.		8,951,797		100		104,910		146,555		(2,602	)
KB Credit Information Co., Ltd.		1,252,400		100		23,621		26,121		(5,316	)
KB Data Systems Co., Ltd.		800,000		100		6,334		41,945		945
Total		—		—		24,062,116		—		—

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

7.5. Related Party Transactions

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

										(Unit: in billions of Won)
Issuer	Relationship	Type	Issue Amount		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: in billions of Won)
Issuer	Relationship	Type	Issue Amount		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: in billions of Won)
Issuer	Relationship	Type	Issue Amount		Issue Date	Interest Rate			Maturity Date	Use of Proceeds
KB Capital Co., Ltd.	Subsidiary	No. 343 Private Placement of Capital Securities in Won		50	March 29, 2016		4.396	%	March 29, 2046 (may be extended)	Working capital
	(Unit: in billions of Won)
Issuer	Relationship	Type	Issue Amount		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
	(Unit: in billions of Won)
Issuer	Relationship	Type	Issue Amount		Issue Date	Interest Rate			Maturity Date	Use of Proceeds
KB Capital Co., Ltd.	Subsidiary	No. 367 Private Placement of Capital Securities in Won		50	November 28, 2016		4.744	%	November 28, 2046 (may be extended)	Working capital
	(Unit: in billions of Won)
Issuer	Relationship	Type	Issue Amount		Issue Date	Interest Rate			Maturity Date	Use of Proceeds
KB Capital Co., Ltd.	Subsidiary	No. 378 Private Placement of Capital Securities in Won		50	April 27, 2017		4.431	%	April 27, 2047 (may be extended)	Working capital

7.5.2. Prepayments and Loans to Subsidiaries

	(Unit: in billions of Won)
Name	Relationship	Account	Loan Amount		Current Balance	Credit Offering Date		Interest Rate	Maturity Date
KB Investment Co., Ltd.	Subsidiary	Loans(1)		10	10		July 14, 2017	2.150%(2)	July 12, 2019 (may be extended)

(1) Unsecured credit loans

(2) The interest rate changed from 2.042% to 2.150% when extended on July 13, 2018.

	(Unit: in billions of Won)
Name	Relationship	Account	Loan Amount		Current Balance	Credit Offering Date		Interest Rate	Maturity Date
KB Investment Co., Ltd.	Subsidiary	Loans(1)		40	40		July 13, 2018	2.150%	July 12, 2019 (may be extended)

(1) Unsecured credit loans

7.5.3. Purchase of Liiv trademark from Kookmin Bank

Counterparty	Kookmin Bank
Transaction Type	Purchase of an asset
Transaction Date	April 13, 2017
Transaction Object	Domestic and overseas trademark of “Liiv,” a mobile brand
Purpose	To generate synergy by promoting mobile brands at the group level
Transaction Price	Won 146 million (excluding value-added taxes)
Others	The Transaction Price was calculated based on the actual levels of expenditure made by Kookmin Bank in connection with the trademark and reflects the opinion of an external accounting firm.

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: August 14, 2018	By: /s/ Ki-Hwan Kim
	(Signature)
	Name:	Ki-Hwan Kim
	Title:	Senior Managing Director and Chief Finance Officer