KB Securities Co. Ltd.

The stable outlook on KB Securities reflects our view that KBFG will maintain an adequate capital buffer over the next 18-24 months, backed by moderate asset growth and steady profit generation. 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 strategic importance to the group. The ratings on the company will therefore remain highly correlated with the group's creditworthiness. We could lower the ratings on KB Securities if: The group's capitalization weakens, pushing down its risk-adjusted capital (RAC) ratio sustainably below 7%, potentially due

...We view KB Securities Co. Ltd. as integral to KBFG, to which it brings revenue diversification and cross-selling benefits. The company is the group's second-largest operating subsidiary, constituting about 12% of group shareholders' equity as of end-2024. It also contributed to about 12% of group net income attributable to controlling interest in 2024. KB Securities will likely receive strong support from KBFG if needed, as a core subsidiary. We believe KB Securities will maintain adequate capitalization despite challenging operating conditions. We expect the company to focus on risk management rather than rapid business expansion amid heightened volatility in the financial market. We also anticipate KB Securities will continue to closely monitor and manage its risk exposure and risk appetite within reasonable boundaries. The company follows the groupwide top-down risk management framework....

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