Summary: Kookmin Bank

Strong market position as Korea's largest bank. Strong retail banking business. Low concentration risk. Potential pressure on asset quality from high household leverage in Korea. Moderate management and governance track record, although improving in recent years. The stable outlook on Kookmin Bank reflects S&P Global Ratings' view that the bank and its parent group, KB Financial Group (KBFG), will maintain their current level of capitalization and stable asset quality over the next 18-24 months. The Korean banking sector faces ongoing pressure from its exposure to corporate sectors such as real estate and construction, and shipbuilding and shipping. Potential asset-quality risk from household debt is also increasing. Nonetheless, we believe Kookmin will manage potential upward pressure in credit costs with its

...Outlook: Stable The stable outlook on Kookmin Bank reflects S&P Global Ratings' view that the bank and its parent group, KB Financial Group (KBFG), will maintain their current level of capitalization and stable asset quality over the next 18-24 months. The Korean banking sector faces ongoing pressure from its exposure to corporate sectors such as real estate and construction, and shipbuilding and shipping. Potential asset-quality risk from household debt is also increasing. Nonetheless, we believe Kookmin will manage potential upward pressure in credit costs with its current pre-provisioning profit levels. That's because of the bank's efforts over the past several years to tighten underwriting standards, write off bad loans, and build in additional provisioning under regulatory guidance for the weak corporate sectors....

Summary