Kim Jong-ryong's Capital Structure Overhaul Shows Results... Our Financial Group Closes In on KB's CET1 13.7%

Our Financial Group is rapidly enhancing its capital strength, drawing attention in the financial sector. Previously struggling with the lowest common equity tier 1 (CET1) ratio among the four major financial groups, limiting M&A and shareholder returns, the group has now narrowed the gap with KB Financial and restored its capital competitiveness. Market analysts note that Kim Jong-ryong's capital-focused management strategy is beginning to yield tangible results. The group reported a 13.70% CET1 ratio for the second quarter, surpassing its long-term target of 13%, while KB Financial stood at 13.74%, Shinhan Financial at 13.43%, and Hanafin at 13.21%. The improvement reflects regulatory changes to the internal credit risk model, reducing risk-weighted assets and boosting CET1 ratios. After years of underperforming capital ratios, the group's strategic focus on capital efficiency and risk management has paid off, with profits recovering to a record high in the second quarter.