The Extended Corporate Governance Committee (the “Extended Committee”; Chairperson: Young-Hwi Choi) of KB Financial Group Inc. (“KBFG”) resumed its second meeting (which had been adjourned on September 8, 2017) at 6:00 p.m. on Thursday, September 14, 2017, at the headquarters of Kookmin Bank in Myeong-dong, Seoul, and determined the list of the three final CEO candidates (the “Short List”) consisting of Dr. Jong Kyoo Yoon, Mr. Ok Chan Kim and Mr. Jong-Hee Yang. Among the candidates on the Short List, the incumbent CEO Dr. Jong Kyoo Yoon will undergo an in-depth evaluation, as both Mr. Ok Chan Kim and Mr. Jong-Hee Yang declined to participate in interviews.

At the meeting, the Extended Committee continued extensive discussions regarding the strengths and weaknesses, competency and qualifications of each of the seven candidates initially shortlisted on September 8, 2017, after which it finalized the Short List of three candidates through a vote of committee members. During such process, the Extended Committee evaluated the candidates by comprehensively considering the qualities required for a CEO, such as professional experience, expertise, leadership and integrity. Immediately after the Short List was finalized, the Chairperson Mr. Young-Hwi Choi contacted each of the candidates to confirm whether they would accept the committee’s invitation to interviews, which all of the candidates except Dr. Yoon declined.

As Dr. Jong Kyoo Yoon consequently became the sole CEO candidate, the members of the Extended Committee discussed the possibility of concerns being raised both internally and externally regarding the fairness of the CEO candidate nomination process. However, the members of the Extended Committee agreed that it would be most fair to simply disclose the results derived based on the principles initially established by the committee, and decided to proceed accordingly.

The Extended Committee plans to hold its third meeting on September 26, 2017 to conduct an in-depth evaluation of Dr. Yoon. The in-depth evaluation will be conducted in the form of a 180 minute-long interview, during which the members of the Extended Committee will evaluate Dr. Yoon based on the criteria for “a candidate who shares the vision and values of KBFG and can strive for sound management in the short and long term,” from among the minimum CEO qualification requirements set forth in the CEO Succession Regulations. (Please refer to Table 1 below for the in-depth evaluation criteria for Short List candidates.) Through such in-depth evaluation, the members of the Extended Committee plan to verify whether Dr. Yoon would indeed be capable of accomplishing the following four tasks, according to the basic principles for the nomination of the CEO established at the first meeting of the Extended Committee: “enhancing corporate social responsibility and ethical business management,” “establishing a stable corporate governance structure for sustainable growth,” “developing a harmonious and dynamic KBFG corporate culture” and “building a foundation for future growth.”

At its third meeting on September 26, 2017, after completing its in-depth evaluation through the interview, the Extended Committee plans to make its final decision on whether to recommend Dr. Jong Kyoo Yoon as the CEO candidate through further discussions and a vote.

[Table 1. In-depth Evaluation Criteria for Short List Candidates]