New KB Financial chair pledges more social contributions

KB Financial Group’s new chairman promised to contribute more to society in his inaugural speech on Tuesday as the government pressures banks to redistribute record profits.

KB Financial Group Chairman Yang Jong-hee holds an inauguration ceremony at the KB Kookmin Bank headquarters in Yeouido, western Seoul, on Tuesday. [KB FINANCIAL GROUP]

KB Financial Group’s new chairman promised to contribute more to society in his inaugural speech on Tuesday as the government pressures banks to redistribute record profits.

Yang Jong-hee, chairman of KB Financial Group, a major Korean banking group, said he would focus on four areas during his three-year term: coexistence with society, providing “the best” customer experience, raising employees’ pride and boosting shareholder returns.

“There are still a lot of people struggling in our society,” Yang said in his inaugural speech, noting the self-employed hit by the pandemic and the younger generation facing marriage and childbirth.

The event, attended by around 150 KB employees, workers from cooperatives and the self-employed, took place at the KB Kookmin Bank headquarters in Yeouido, western Seoul, on Tuesday.

“KB will endlessly discover areas where we can fulfill our social responsibility,” Yang added.

The pledge came a day after financial authorities pressured organizations within the industry to introduce practical solutions that can reduce borrowers’ burden amid protracted high interest rates.

KB will “run the management in a way that can repay the expectations of shareholders,” he said.

Last week, Yang promised to boost shareholder remuneration as the public suffers economic woes.

Yang said he would “further develop the policy of expanding shareholder returns” as his appointment was approved at a shareholder meeting on Friday.

Yang, 62, was formerly KB Financial Group's vice chairman before replacing the former chairman, Yoon Jong-kyoo. Yang has been with the financial group since 1989 and served as the chief for the financial group’s retail banking, asset management and pension-related business.

BY JIN MIN-JI [jin.minji@joongang.co.kr]