“We will avoid an organization where power is concentrated in the chairman”... KB chairman nominee Jae-Geun Lee emphasizes responding to changes in AI and capital markets

[Financial News] Jae-Geun Lee, head of a division at KB Financial Group Inc. and candidate for the next chairman of the group, outlined plans to respond to changes in the financial industry driven by artificial intelligence (AI), digital transformation, and capital markets. As his experience in digital operations and overseas business emerges as a strength, enhancing the competitiveness of nonbank affiliates—including insurance, securities, and credit card businesses—has been identified as a key challenge.
Meeting reporters on his way to work at KB Financial Group Inc.’s new headquarters in Yeouido, Seoul, on the 14th, Lee emphasized, “I view my selection as a candidate for the next chairman, at a time when KB Financial Group Inc. is delivering strong results, as a message that we must not become complacent about being the No. 1 financial group.” He assessed, “The environment surrounding the financial industry is changing significantly, including AI and digital technology, money moves, and an aging population,” adding, “Some say the next three to five years will determine the fate of financial groups.”
Lee served as president of KB Kookmin Bank for three years, from 2022 through 2024, during which he pursued an expansion of the bank’s digital customer base.
The monthly active users (MAUs) of KB Star Banking rose by 1,976,000, or 17.9%, from 11,055,000 at the end of 2022 to 13,031,000 at the end of 2024. The bank used Star Banking as a platform connecting the group’s financial services and also pursued links with nonfinancial services. It expanded the Nine-to-Six Bank (9To6 Bank), which extended operating hours to 6 p.m., and revamped its online and offline channels by introducing mobile video consultation services.
Overseas, Lee was responsible for transforming the businesses and normalizing the operations of acquired local subsidiaries. During his tenure, KB Kookmin Bank received final approval in August 2023 for the merger of PRASAC Microfinance Institution Limited and KB Cambodia Bank, as well as the conversion into a commercial bank. PRASAC Microfinance Institution Limited, in which KB Kookmin Bank acquired a 100% stake in 2021, was launched as the integrated commercial bank KB PRASAC Bank Plc.
In Indonesia, he led normalization efforts at KB Bank, including injecting additional funds and pursuing the sale of nonperforming assets. KB Bank, which had continued to post losses, turned profitable last year by recording a net profit under local accounting standards. Even after being appointed head of KB Financial Group Inc.’s Global Business Division at the end of 2024, Lee continued to oversee the Indonesia business.
After taking office as chairman, strengthening the competitiveness of nonbank affiliates will also be a major task. In the first half of this year, nonbank affiliates accounted for 44% of KB Financial Group Inc.’s overall performance contribution, with securities accounting for 21% of that figure. Lee has served as head of the holding company’s financial planning department and as chief financial officer (CFO), but he has never headed an insurance, securities, or credit card affiliate. Based on his experience managing businesses at the holding-company level, he will need to leverage each affiliate’s expertise and foster collaboration.
Lee emphasized, “Being a leading financial group means more than simply outperforming in results. It means leading changes in the financial industry and creating new standards and benchmarks,” adding, “Based on our well-established nonbank portfolio, we must reflect on what it means to be the No. 1 financial group.”
For organizational management, Lee proposed management based on systems and the decentralization of authority. He said, “Rather than concentrating power in one chairman, the larger the organization, the more it should operate through processes and systems,” adding, “I will place greater emphasis on building a more decentralized and sustainable organization.” He continued, “I will ensure that continuity in KB Financial Group Inc.’s management, strategy, and business is not undermined,” and added, “A generational shift or ‘Young KB’ does not simply refer to age. It means an organization that makes decisions quickly and responsibly.”
[email protected] Byung-jung Ye and Hyun-jung Lee Reporter