ESG activities converted into monetary value

Inclusive finance, youth support, small business aid reflected in figures

Full social value report to be released next year

KB Financial Group's new headquarters building [Provided by KB Financial Group]
KB Financial Group's new headquarters building [Provided by KB Financial Group]

KB Financial Group generated more than 2.5 trillion won ($1.89 billion) in social value this year through inclusive finance initiatives, youth self-reliance programs and support for small and medium-sized enterprises and small business owners, the group said Thursday. The third quarter alone accounted for more than 900 billion won.

Social value created through social contribution activities in the third quarter totaled 903.7 billion won, KB Financial Group said. The cumulative figure for the first three quarters stood at 2.57 trillion won.

KB Financial Group converts the social impact of its environmental, social and governance activities — spanning both financial and non-financial sectors — into monetary terms and discloses the figures each quarter. The methodology measures not just the scale of operating expenditures but the broader social effects generated through financial support and community contribution programs.

The figures announced Thursday cover only the social contribution segment. The full social value figure — which will also include governance-related items such as shareholder returns and tax payments — is set to be disclosed in a social value report to be published next year.

Key contributors in the social contribution segment included support for financially vulnerable groups, youth self-reliance, the development of small and medium-sized enterprises and small business owners, and community co-prosperity programs. In the inclusive finance area, KB Financial Group operates six KB Hope Finance Centers nationwide, offering guidance on debt restructuring programs and policy finance products, and connecting customers struggling with debt burdens to professional psychological counseling services.

Since July, the group has also run a special debt-reduction program that cuts the principal on special-category bonds by up to 90% for recipients of basic livelihood benefits and near-poverty households. The program is designed to help financially vulnerable borrowers — those unable to conduct normal financial transactions due to long-term delinquency — rebuild their credit and regain financial footing.

Youth support has focused on easing living costs and building a foundation for self-reliance. KB Financial Group backs a "1,000-won breakfast" program for university students and a subsidized lunch program for workers at small and medium-sized enterprises in regional areas. It also supports asset accumulation and livelihood stability through youth-dedicated savings accounts and financial products including the Saeheuimang Holssi and Miso Finance microfinance programs.

Support for small and medium-sized enterprises and small business owners was also expanded. In June, KB Financial Group contributed 10 billion won to a large-and-small business co-prosperity fund. Of that amount, 3 billion won will go toward establishing a mother fund to invest in companies that generate social value, while the remaining 7 billion won will be channeled into AI transformation, green transition and safety transition projects for small and medium-sized enterprises and small business owners.

In the community support area, the group donated 500 million won to help restore areas hit by heavy rainfall and ran separate financial support programs for affected residents and businesses. It has also been running public safety programs covering financial fraud prevention and traffic safety support for elderly drivers.

"We will continue to expand tailored support that grows alongside youth, small and medium-sized enterprises, small business owners and local communities through sustained inclusive finance practices," a KB Financial Group official said. "KB Financial Group will continue to fulfill its social responsibilities as a steadfast partner to the public and lead the way in building a sustainable society."

Meanwhile, securities analysts expect KB Financial Group's shareholder return for next year to reach 4.2 trillion won. Hanwha Investment & Securities projected that the shareholder return ratio will rise to 62%, with share buybacks and cancellations exceeding 2 trillion won.


rim@heraldcorp.com