The Extended Corporate Governance Committee (the “Extended Committee”; Chairperson: Young-Hwi Choi) of KB Financial Group Inc. (“KBFG”) held its second meeting in the morning of September 8, 2017 and began narrowing down the initial list of 23 CEO candidates (the “Long List”) to a final group of shortlisted candidates (the “Short List”).

At the meeting, the Extended Committee conducted a quantitative evaluation of 12 candidates from the Long List (consisting of seven internal candidates and five external candidates) who satisfied the cut-off criteria. (Please refer to Table 1 below for the cut-off criteria for internal candidates.) The quantitative evaluation was conducted for each candidate using a questionnaire with 20 questions, composed of five questions in each of the following four categories among the minimum CEO qualification requirements set forth in the CEO Succession Regulations: professional experience, expertise, leadership and integrity required for CEOs of financial institutions. The incumbent CEO Dr. Jong Kyoo Yoon was evaluated based on his business performance over the past three years, in addition to the above quantitative evaluation.

To enhance the fairness of the selection process for the Short List, the seven candidates with the highest quantitative evaluation scores (consisting of four internal candidates and three external candidates) were initially identified, without regard to their status as internal or external candidates. The Extended Committee then engaged in a long, in-depth discussion regarding the strengths and weaknesses, competency and qualifications of each of the seven candidates in order to develop a Short List of around three candidates. However, the Extended Committee agreed to adjourn the meeting and resume its discussions on September 14, 2017, as the members believed that they needed additional time and opportunity for discussion before finalizing the Short List. Accordingly, it is expected that the Short List of around three CEO candidates will be finalized during the next meeting of the Extended Committee scheduled for September 14, 2017.

Subsequently, the Extended Committee plans to conduct an in-depth evaluation of candidates on the Short List who agree to be interviewed, over two days on September 26 and 27, 2017. The in-depth evaluation will be conducted in the form of 180 minute-long interviews, during which the members of the Extended Committee will evaluate the candidates 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 the long term,” from among the minimum CEO qualification requirements set forth in the CEO Succession Regulations. (Please refer to Table 2 below for the in-depth evaluation criteria for Short List candidates.) Based on the results of this in-depth evaluation, the Extended Committee is expected to select the final candidate believed to be most 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.”

After completing the in-depth evaluation through the interviews, the Extended Committee will determine and recommend the final candidate through further discussions and a vote.

[Table 1. Cut-off Criteria for Internal Candidates]

[Table 2. In-depth Evaluation Criteria for Short List Candidates]