KB Financial Group Chairman Yang Jong-hee (KB Financial Group)
KB Financial Group Chairman Yang Jong-hee (KB Financial Group)

Chief of KB Financial Group, a major financial service provider based in South Korea, promised to continue the push to boost the firm’s market value to global investors, KB Financial announced Wednesday.

According to the firm, KB Financial Chairman Yang Jong-hee sent a letter to foreign investors on Monday as part of efforts to ramp up its global communication.

“With the escalated volatility in interest rates and foreign exchange rates due to the difficulties surrounding Korea, shareholders' concerns about the business environment and the value-up program are growing. We are taking in the current situation with gravity," Yang wrote in the letter.

"KB Financial will continue the push for its sustainable value-up initiatives, as promised to shareholders through a regulatory filing made in October."

In October, KB Financial announced its corporate value-up plan, pledging to enhance its shareholder return. It plans to return excess capital exceeding a Common Equity Tier 1 ratio of 13 percent to its shareholders and maintain a return on equity of over 10 percent.

With a 33.72 trillion won ($23.24 billion) market capitalization, KB Financial is the ninth-largest company on the benchmark Kospi, as of Wednesday. It also has the largest market cap among the major financial firms based here. Its share price has been fluctuating at around 85,000 won this week, marking an over 35,000 won rise from how it stood at 48,900 won on Jan. 19, 2024.

The surge was backed by the expectations that banking shares could benefit from the government’s push for the corporate value-up program as the financial service providers, including KB Financial, have pledged to enhance dividend payouts.

"Amid the rising volatility, KB Financial is to improve its profitability based on its forte of a balanced portfolio, and it will drive growth in quality, rather than quantity, focusing on risk-weighted assets, or RoRWA," an official from KB Financial said.