KB Securities Co. Ltd.

We anticipate KB Securities will continue to closely monitor and manage its risk exposure within reasonable boundaries. The company follows the groupwide top-down risk management framework. The stable outlook on KB Securities reflects our view that KBFG will maintain adequate capital buffer over the next 18-24 months, backed by moderate asset growth. We also believe the group's focus on risk management and adequate underwriting standards will help mitigate some pressure on asset quality and credit costs. We expect KBFG to provide strong support to KB Securities under any foreseeable circumstances during the period, considering the company's core importance to the group. The ratings on the company will therefore remain highly correlated with the group's creditworthiness. We could lower the ratings

...KB Securities Co. Ltd. will likely receive strong support from KBFG if needed. We view KB Securities as integral to the group, to which it brings revenue diversification and cross-selling benefits. The company is the group's second-largest operating subsidiary, constituting about 11% of its shareholders' equity as of end-2023. We assess KB Securities as a core nonbank subsidiary of KBFG. We believe KB Securities will maintain an adequate capital buffer amid challenging operating conditions. The company will likely prioritize risk management rather than aggressive business growth. This should support its adequate capitalization over the next two years. We anticipate KB Securities will continue to closely monitor and manage its risk exposure within reasonable boundaries. The company follows the groupwide top-down risk management framework....

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