...July 25, 2023 HONG KONG (S&P Global Ratings) July 25, 2023--KB Financial Group Inc.'s (KBFG) adequate risk management and loss-absorbing capacity will help it ride out a slowing Korean economy and subdued domestic property markets. Asset quality deterioration in real estate project financing will not be a material risk for the Korea-based financial group, considering its tight underwriting standards, in our opinion. KBFG's (A/Stable/A-1) exposure to real estate project financing was modest at about 2% of gross loans as of end-June 2023, based on our estimate. Among KBFG's subsidiaries, Kookmin Bank (A+/Stable/A-1) has the largest exposure, consisting mostly of loans for residential projects located in Seoul and major cities in Korea. We consider these loans to be relatively low risk. We believe the group's overseas alternative investments, such as commercial properties, will not be a burden, given small exposures mainly in senior tranches. KBFG's build-up of additional provisions will provide...
