KB Financial Group Inc. | CIK:0001445930 |

Filed: 4/27/2018

Entity registrant name: KB Financial Group Inc. (CIK: 0001445930)

Generator: Fujitsu

SEC filing page: http://www.sec.gov/Archives/edgar/data/1445930/000119312518136720/0001193125-18-136720-index.htm

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ifrs-full:DisclosureOfCommitmentsAndContingentLiabilitiesExplanatory

39. Contingent Liabilities and Commitments

Details of payment guarantees as of December 31, 2016 and 2017, are as follows:


	2016		2017
	(In millions of Korean won)
Confirmed payment guarantees
Confirmed payment guarantees in Korean won
Payment guarantees for KB purchasing loan	￦	329,051	￦	252,817
Other payment guarantees		858,951		530,272

Sub-total		1,188,002		783,089

Confirmed payment guarantees in foreign currency
Acceptances of letter of credit		234,125		147,987
Letter of guarantees		64,189		60,853
Bid bond		64,242		46,984
Performance bond		703,076		563,506
Refund guarantees		1,689,343		778,779
Other payment guarantees in foreign currency		1,593,770		1,960,769

Sub-total		4,348,745		3,558,878

Financial guarantees
Guarantees for Debenture-Issuing		31,000		—
Payment guarantees for mortgage		25,994		57,446
Overseas debt guarantees		272,255		285,576
International financing guarantees in foreign currencies		52,961		46,953
Other financing payment guarantees		334		270,029

Sub-total		382,544		660,004

Total Confirmed acceptances and guarantees		5,919,291		5,001,971

Unconfirmed acceptances and guarantees
Guarantees of letter of credit		2,068,105		2,250,542
Refund guarantees		217,272		384,959

Total Confirmed acceptances and guarantees		2,285,377		2,635,501

Total	￦	8,204,668	￦	7,637,472

Acceptances and guarantees by counterparty as of December 31, 2016 and 2017, are as follows:


	2016
	Confirmed guarantees		Unconfirmed guarantees		Total		Proportion (%)
	(In millions of Korean won)
Corporations	￦	5,129,393	￦	1,644,556	￦	6,773,949		82.56
Small companies		623,424		479,514		1,102,938		13.44
Public and others		166,474		161,307		327,781		4.00

Total	￦	5,919,291	￦	2,285,377	￦	8,204,668		100.00


	2017
	Confirmed guarantees		Unconfirmed guarantees		Total		Proportion (%)
	(In millions of Korean won)
Corporations	￦	4,185,975	￦	1,913,114	￦	6,099,089		79.86
Small companies		621,834		492,369		1,114,203		14.59
Public and others		194,162		230,018		424,180		5.55

Total	￦	5,001,971	￦	2,635,501	￦	7,637,472		100.00

Acceptances and guarantees by industry as of December 31, 2016 and 2017, are as follows:


	2016
	Confirmed guarantees		Unconfirmed guarantees		Total		Proportion (%)
	(In millions of Korean won)
Financial institutions	￦	74,282	￦	3,710	￦	77,992		0.95
Manufacturing		3,315,257		1,141,571		4,456,828		54.32
Service		765,051		63,847		828,898		10.10
Whole sale & Retail		1,171,151		779,163		1,950,314		23.77
Construction		509,329		129,111		638,440		7.78
Public sector		82,646		92,445		175,091		2.13
Others		1,575		75,530		77,105		0.95

Total	￦	5,919,291	￦	2,285,377	￦	8,204,668		100.00


	2017
	Confirmed guarantees		Unconfirmed guarantees		Total		Proportion (%)
	(In millions of Korean won)
Financial institutions	￦	23,317	￦	7,353	￦	30,670		0.40
Manufacturing		2,799,593		1,270,721		4,070,314		53.29
Service		655,057		100,004		755,061		9.89
Whole sale & Retail		935,647		837,230		1,772,877		23.21
Construction		335,156		198,996		534,152		6.99
Public sector		165,249		129,944		295,193		3.87
Others		87,952		91,253		179,205		2.35

Total	￦	5,001,971	￦	2,635,501	￦	7,637,472		100.00

Commitments as of December 31, 2016 and 2017, are as follows:


	2016		2017
	(In millions of Korean won)
Commitments
Corporate loan commitments	￦	35,723,627	￦	32,857,616
Retail loan commitments		15,789,809		16,074,323
Credit line on credit cards		43,937,899		49,299,924
Purchase of other security investment and others		1,554,221		3,951,304

Sub-total		97,005,556		102,183,167

Financial Guarantees
Credit line		3,334,648		2,669,071
Purchase of security investment		1,029,100		354,800

Sub-total		4,363,748		3,023,871

Total	￦	101,369,304	￦	105,207,038

Other Matters (including litigation)

a) The Group has filed 121 lawsuits (excluding minor lawsuits in relation to the collection or management of loans), involving aggregate claims of ￦510,954 million, and faces 288 lawsuits as the defendant (excluding minor lawsuits in relation to the collection or management of loans) involving aggregate damages of ￦220,957 million, which arose in the normal course of the business and are still pending as of December 31, 2017.

b) During 2017, Kookmin Bank has entered into construction contracts amounting to ￦150,051 million and ￦105,175 million related to the construction of integrated headquarter building and integrated IT center, respectively, and no expenditures were made during the year ended December 31, 2017.

c) The face value of the securities which Kookmin Bank sold to general customers through the bank tellers amounts to ￦5,731 million and ￦372 million as of December 31, 2016 and 2017, respectively.

d) While setting up a fraud detection system, a computer contractor employed by the personal credit ratings firm Korea Credit Bureau caused a widespread data breach in June 2013, resulting in the theft of cardholders’ personal information. As a result of the leakage of customer personal information, the KB Kookmin Card received a notification from the Financial Services Commission that the KB Kookmin Card was subject to a temporary three-month operating suspension as of February 16, 2014. In respect of the incident, the Group faces 120 legal claims filed as the defendant, with an aggregate claim of ￦10,291 million as of December 31, 2017. A provision liability of ￦11,078 million has been recognized for these pending lawsuits. In addition, the additional lawsuits may be filed against the Group. Meanwhile, the final outcome of the cases cannot be reasonably ascertained.