On November 26, 2003, the Board of Directors of Kookmin Bank has approved and ratified to purchase treasury stocks through participating in the sales bid of Korean government stake in Kookmin Bank. On 30 October, 2003, Korean government announced its plan to sell its shares by means of auction by the middle of December 2003. The government will select the interested parties to participate in the bid.

The purposes of this purchase of treasury stocks are i) for retirement of shares with earnings capital and ii) for stabilization of stock price of the Bank, pursuant to Article 189 and Article 189.2 of Korean Securities Exchange Act respectively.

1.1 Purchase price

The price will be determined by Korean government in accordance with the results of the auction.

1.2 Estimated number of shares and amount of purchase

The number of shares and amount of purchase will also be determined by the results of the auction.

1.3 Purchase period*

For the retirement of shares: From December 1 to December 17, 2003

For the stabilization of stock price: From December 18 to December 22, 2003

The above periods are subject to changes according to the auction schedule to be determined by Korean government.

* Pursuant to Article 84 of Korean Securities Exchange Act, purchase of treasury stock for the purpose of retirement of shares shall not be executed during the same period of purchase of treasury stock for the purpose of stabilization of stock price

1.4 Purchase method

Purchase from the Korean government through After-Hour Block Trading Method.

1.5 Estimated holding period of the treasury stock

Treasury stocks purchased for retirement will be cancelled promptly after the purchase, while stocks purchased for stock price stabilization will be held for 6 months from the date of purchase.

1.6 Balance of treasury stocks

Kookmin Bank is holding 3,603,223 shares as treasury stocks as of 26 November, 2003, which includes stocks purchased for the purpose of Employees Stock Ownership Program (ESOP) and compensation for stock option exercise and fractional shares acquired due to stock dividend and two mergers between former Kookmin Bank and H&CB and between Kookmin Bank and Kookmin Credit Card Co.

1.7 Other information

The Bank’s own funds will be used for the purchase, and the purchase agents will be Daishin Securities Co. and Dongwon Securities Co. for retirement of shares and for stock price stabilization, respectively.

The purchase price and number of shares are subject to determination by Korean Government in accordance with auction results. Kookmin Bank will disclose further details such as purchase price and number of shares as and when they are determined.

The retirement of shares is executed with earnings capital of the Bank, and therefore it will not change the Bank’s paid-in-capital but decrease number of shares issued.

Furthermore, Kookmin Bank will report the purchase and retirement of shares at the general shareholders meeting first coming after the retirement of shares.