KB Financial's two outside directors to resign amid reform

SEOUL, Jan. 27 (Yonhap) -- Two outside directors with KB Financial Group Inc. offered to resign Wednesday amid moves by the South Korean government to reform non-executive boards of the nation's banking groups.

Byun Bo-kyung and Kim Han, two of KB Financial's nine outside directors,
expressed their intention to step down as non-executive board members, said the
nation's biggest financial service company which also controls top lender Kookmin
Bank.
KB Financial will also set up a committee for nominating new non-executive
directors in order to improve fairness and transparency in the selection process,
the financial group said in a statement.
The decisions came as the government has tried to increase the independence of
outside directors and curb cronyism between directors and company executives at
banking groups.
Non-executive directors have been criticized for turning a blind eye to risky
decisions by local banks that resulted in massive losses, particularly in light
of the recent global financial crisis.
Kookmin Bank CEO Kang Chung-won gave up his candidacy for the KB Financial
chairmanship on Dec. 31 amid rising tension with financial authorities over his
appointment by the group's non-executive directors.
On Dec. 14, the Financial Supervisory Service and the Bank of Korea launched a
joint investigation into the group's trading activities and alleged ties between
Kang and the directors.
pbr@yna.co.kr
(END)