KB Financial Group Inc. | CIK:0001445930 | 3

  • Filed: 4/27/2018
  • Entity registrant name: KB Financial Group Inc. (CIK: 0001445930)
  • Generator: Fujitsu
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    • ifrs-full:DisclosureOfSignificantInvestmentsInAssociatesExplanatory

    13. Investments in Associates and Joint Ventures

    Investments in associates and joint ventures as of December 31, 2016 and 2017, are as follows:

     

        2016
        Ownership
    (%)    		     Acquisition
    cost    		     Share of
    net asset
    amount    		     Carrying
    amount    		    

    Industry

    		   Location
        (In millions of Korean won)

    Associates

    		            

    JSC Bank CenterCredit

    		            

    Ordinary share10

    		     29.56     ￦ 954,104     ￦ (32,191 )    ￦ —      

    Banking

    		   Kazakhstan

    Preference share10

    		     93.15            

    KB GwS Private Securities Investment Trust

    		     26.74       113,880       133,150       129,678    

    Investment finance

    		   Korea

    KB-Glenwood Private Equity Fund2,11

    		     0.03       10       10       10    

    Investment finance

    		   Korea

    KB Star office Private real estate Investment Trust No.1

    		     21.05       20,000       20,220       19,807    

    Investment finance

    		   Korea

    Doosung Metal Co., Ltd.7

    		     26.52       —         (51 )      —      

    Manufacture of metal products

    		   Korea

    RAND Bio Science Co., Ltd.

    		     24.24       2,000       2,000       2,000    

    Research and experimental development on medical sciences and pharmacy

    		   Korea

    Balhae Infrastructure Company2

    		     12.61       130,189       133,200       133,200    

    Investment finance

    		   Korea

    IMM Investment 5th PRIVATE EQUITY FUND8

    		     98.88       10,000       9,999       9,999    

    Private equity fund

    		   Korea

    Aju Good Technology Venture Fund

    		     38.46       1,998       1,949       1,998    

    Investment finance

    		   Korea

    SY Auto Capital Co., Ltd.

    		     49.00       9,800       26,311       5,693    

    Installment loan

    		   Korea

    Wise Asset Management Co., Ltd.9

    		     33.00       —         —         —      

    Asset management

    		   Korea

    isMedia Co., Ltd.

    		     22.87       3,978       3,978       3,978    

    Semiconductor instrument manufacture

    		   Korea

    Incheon Bridge Co., Ltd.2

    		     14.99       24,677       728       728    

    Operation of highways and related facilities

    		   Korea

    Jungdong Steel Co., Ltd.7

    		     42.88       —         (423 )      —      

    Wholesale of primary metal

    		   Korea

    KB Insurance Co., Ltd. 1

    		     39.81       1,052,759       1,393,320       1,392,194    

    Non-life insurance

    		   Korea

    Kendae Co., Ltd.7

    		     41.01       —         (351 )      —      

    Screen printing

    		   Korea

    Dpaps Co., Ltd.7

    		     38.62       —         151       —      

    Wholesale of paper products

    		   Korea

    Shinla Construction Co., Ltd.7

    		     20.24       —         (545 )      —      

    Specialty construction

    		   Korea

    Shinhwa Underwear Co., Ltd.7

    		     26.24       —         (138 )      103    

    Manufacture of underwears and sleepwears

    		     Korea  

    MJT&I Co., Ltd.7

    		     22.89       —         (542 )      232    

    Wholesale of other goods

    		     Korea  

    Inno Lending Co., Ltd.2

    		     19.90       398       378       378    

    Credit rating model development

    		     Korea  

    Ejade Co., Ltd.7

    		     25.81       —         (523 )      —      

    Wholesale of underwears

    		     Korea  

    Jaeyang Industry Co., Ltd.7

    		     20.86       —         (522 )      —      

    Manufacture of luggage and other protective cases

    		     Korea  

    Terra Co., Ltd.7

    		     24.06       —         44       28    

    Manufacture of hand-operated kitchen appliances and metal ware

    		     Korea  

    KBIC Private Equity Fund No. 32

    		     2.00       2,050       2,396       2,396    

    Investment finance

    		     Korea  

    KB No.8 Special Purpose Acquisition Company2,3

    		     0.10       10       19       19    

    SPAC

    		     Korea  

    KB No.9 Special Purpose Acquisition Company2,4

    		     0.11       24       31       31    

    SPAC

    		     Korea  

    KB No.10 Special Purpose Acquisition Company2,5

    		     0.19       10       20       20    

    SPAC

    		     Korea  

    KB No.11 Special Purpose Acquisition Company2

    		     4.76       10       13       13    

    SPAC

    		     Korea  

    KB Private Equity Fund III2

    		     15.68       8,000       8,000       8,000    

    Investment finance

    		     Korea  

    Korea Credit Bureau Co., Ltd.2

    		     9.00       4,500       4,853       4,853    

    Credit information

    		     Korea  

    KoFC KBIC Frontier Champ 2010-5(PEF)

    		    50.00       23,985       25,105       24,719    

    Investment finance

    		     Korea  

    KoFC POSCO HANHWA KB shared growth Private Equity Fund No. 2

    		     25.00       22,701       24,789       24,789    

    Investment finance

    		     Korea  

    Keystone-Hyundai Securities No. 1 Private Equity Fund2

    		     5.64       1,842       1,850       1,850    

    Investment finance

    		     Korea  

    Hyundai-Tongyang Agrifood Private Equity Fund

    		     25.47       4,645       3,957       3,957    

    Investment finance

    		     Korea  
       

     

     

    		    

     

     

    		    

     

     

    		      

    Total

    		     ￦ 2,391,570     ￦ 1,761,185     ￦ 1,770,673      
       

     

     

    		    

     

     

    		    

     

     

    		      

     

        2017  
        Ownership
    (%)    		     Acquisition
    cost    		     Share of
    net asset
    amount    		     Carrying
    amount    		    

    Industry

    		   Location  
        (In millions of Korean won)  

    Associates and Joint ventures

    		            

    KB Pre IPO Secondary Venture Fund 1st2

    		     15.19     ￦ 1,671     ￦ 1,601     ￦ 1,601     Investment finance     Korea  

    KB GwS Private Securities Investment Trust

    		     26.74       113,880       134,891       131,420     Investment finance     Korea  

    KB-KDBC New Technology Business Fund12

    		     66.66       5,000       4,972       4,972     Investment finance     Korea  

    KB Star office Private real estate Investment Trust No.1

    		     21.05       20,000       20,122       19,709     Investment finance     Korea  

    Sun Surgery Center Inc.

    		     28.00       2,682       2,682       2,682     Hospital    

    		 United
    States of
    America    		  
     
     

    Dae-A Leisure Co., Ltd.7

    		     49.36       —         1,017       —       Earth works     Korea  

    Doosung Metal Co., Ltd.7

    		     26.52       —         (20 )      —       Manufacture of metal products     Korea  

    RAND Bio Science Co., Ltd.

    		     24.24       2,000       2,000       2,000     Research and experimental development on medical sciences and pharmacy     Korea  

    Balhae Infrastructure Company2

    		     12.61       101,794       105,190       105,190     Investment finance     Korea  

    Bungaejangter Inc.

    		     22.69       3,484       3,484       3,484     Portals and other internet information media service activities  

    Aju Good Technology Venture Fund

    		     38.46       8,230       7,856       8,230     Investment finance   Korea

    Acts Co., Ltd.

    		     27.78       500       500       500     Manufacture of optical lens and elements   Korea

    SY Auto Capital Co., Ltd.

    		     49.00       9,800       14,099       8,070     Installment loan   Korea

    Wise Asset Management Co., Ltd.9

    		     33.00       —         —         —       Asset management   Korea

    Incheon Bridge Co., Ltd.2

    		     14.99       9,158       (16,202 )      —       Operation of highways and related facilities   Korea

    Jungdong Steel Co., Ltd.7

    		     42.88       —         (436 )      —       Wholesale of primary metal   Korea

    Kendae Co., Ltd.7

    		     41.01       —         (223 )      127     Screen printing   Korea

    Daesang Techlon Co., Ltd.7

    		     47.73       —         97       —       Manufacture of plastic wires, bars, pipes, tubes and hoses   Korea

    Dongjo Co., Ltd.7

    		     29.29       —         691       —       Wholesale of agricultural and forestry machinery and equipment   Korea

    Dpaps Co., Ltd.7

    		     38.62       —         155       —       Wholesale of paper products   Korea

    Big Dipper Co., Ltd.

    		     29.33       440       325       440     Big data consulting  

    Builton Co., Ltd.

    		     22.22       800       800       800     Software development and supply   Korea

    Shinla Construction Co., Ltd.7

    		     20.24       —         (553 )      —       Specialty construction   Korea

    Shinhwa Underwear Co., Ltd.7

    		     26.24       —         (103 )      138     Manufacture of underwears and sleepwears   Korea

    A-PRO Co., Ltd.2

    		     12.61       1,500       1,500       1,500     Manufacture of electric power storage system  

    MJT&I Co., Ltd.7

    		     22.89       —         (601 )      127     Wholesale of other goods   Korea

    Inno Lending Co., Ltd.2

    		     19.90       398       230       230     Credit rating model development   Korea

    Jaeyang Industry Co., Ltd.7

    		     20.86       —         (522 )      —       Manufacture of luggage and other protective cases   Korea

    Jungdo Co., Ltd.7

    		     25.53       —         1,664       —       Office, commercial and institutional building construction   Korea

    Jinseung Tech Co., Ltd.7

    		     30.04       —         (173 )      —       Manufacture of other general-purpose machinery n.e.c.   Korea

    Terra Co., Ltd.7

    		     24.06       —         36       20     Manufacture of hand-operated kitchen appliances and metal ware   Korea

    Paycoms Co., Ltd.

    		     24.06       800       800       800     System software publishing   Korea

    Food Factory Co., Ltd.

    		     30.00       1,000       1,000       1,000     Farm product distribution industry   Korea

    Korea NM Tech Co., Ltd.7

    		     22.41       —         580       —       Manufacture of motor vehicles, trailers and semitrailers   Korea

    KB IGen Private Equity Fund No.12,11

    		     0.03       3       3       3     Investment finance   Korea

    KB No.8 Special Purpose Acquisition Company2 3

    		     0.10       10       20       20     SPAC   Korea

    KB No.9 Special Purpose Acquisition Company2,4

    		     0.11       24       31       31     SPAC   Korea

    KB No.10 Special Purpose Acquisition Company2,5

    		     0.19       10       20       20     SPAC   Korea

    KB No.11 Special Purpose Acquisition Company2,6

    		     0.31       10       19       19     SPAC   Korea

    KB Private Equity Fund III2

    		     15.68       8,000       7,899       7,899     Investment finance     Korea  

    Korea Credit Bureau Co., Ltd.2

    		     9.00       4,500       5,056       5,056     Credit information     Korea  

    KoFC KBIC Frontier Champ 2010-5(PEF)

    		     50.00       6,485       7,506       7,120     Investment finance     Korea  

    KoFC POSCO HANHWA KB shared growth Private Equity Fund No.2

    		     25.00       12,970       17,213       17,213     Investment finance     Korea  

    Keystone-Hyundai Securities No. 1 Private Equity Fund2

    		     5.64       1,842       1,761       1,761     Investment finance     Korea  

    POSCO-KB Shipbuilding Fund

    		     31.25       2,500       2,345       2,345     Investment finance     Korea  

    Hyundai-Tongyang Agrifood Private Equity Fund

    		     25.47       82       543       543     Investment finance     Korea  
       

     

     

    		    

     

     

    		    

     

     

    		      

    Total

    		     ￦ 319,573     ￦ 329,875     ￦ 335,070      
       

     

     

    		    

     

     

    		    

     

     

    		      

     

    1 The market value of KB Insurance Co., Ltd., reflecting the quoted market price, as of December 31, 2016, amounts to ￦522,288 million.
    2 As of December 31, 2016 and 2017, the Group is represented in the governing bodies of its associates. Therefore, the Group has a significant influence over the decision-making process relating to their financial and business policies.
    3 The market value of KB No.8 Special Purpose Acquisition Company, reflecting the quoted market price as of December 31, 2016, and 2017 amounts to ￦20 million and ￦20 million.
    4 The market value of KB No.9 Special Purpose Acquisition Company, reflecting the quoted market price as of December 31, 2016 and 2017, amounts to ￦31 million and ￦31 million, respectively.
    5 The market value of KB No.10 Special Purpose Acquisition Company, reflecting the quoted market price as of December 31, 2016 and 2017, amounts to ￦20 million and ￦20 million, respectively.
    6 The market value of KB No.11 Special Purpose Acquisition Company, reflecting the quoted market price as of December 31, 2017, amounts to ￦20 million.
    7 The investment in associates was reclassified from available-for-sale financial assets due to termination of rehabilitation procedures.
    8 Although the Group holds a majority of the investee’s voting rights, other limited partners have a right to replace general partners. Therefore, the Group has been classified the entity as investment in associates.
    9 Carrying amount of the investment has been recognized as a loss from the date Hyundai Securities Co., Ltd. was included in the consolidation scope.
    10  Market values of ordinary shares of JSC Bank CenterCredit, reflecting the published market price, as of December 31, 2016, are ￦29,358 million. The Group determined that ordinary shares and convertible preference shares issued by JSC Bank CenterCredit are the same in economic substance except for the voting rights, and therefore, the equity method accounting is applied on the basis of single ownership ratio of 41.93%, which is calculated based on ordinary and convertible preference shares held by the Group against the total outstanding ordinary and convertible preference shares issued by JSC Bank CenterCredit. On April 18, 2017, the Group transferred the entire shares of JSC Bank CenterCredit held by the Group.
    11 KB-Glenwood Private Equity Fund changed the name to KB IGen Private Equity Fund No. 1.
    12  In order to take control over the related operations, the agreement from two operative members are required. As such, the group cannot control the investee alone, and the equity method is applied.

     

    Summarized financial information on major associates, adjustments to carrying amount of investment in associates and joint ventures and dividends received from the associates and joint ventures are as follows:

     

        20161  
        Total
    assets    		     Total
    liabilities    		     Share
    capital    		     Equity     Share of
    net asset
    amount    		     Unrealized
    gains
    (losses)    		     Consolidated
    carrying
    amount    		  
        (In millions of Korean won)  

    Associates

    		              

    KB Insurance Co., Ltd.

    		              

    (initial acquisition 22.59%)

    		   ￦ 30,949,859     ￦ 27,357,084     ￦ 33,250     ￦ 3,592,775     ￦ 810,704     ￦ (1,126 )    ￦ 1,392,194  

    (additional acquisition 10.70%)

    		     31,071,846       27,386,605       33,250       3,685,241       393,678      

    (additional acquisition 6.52%)3

    		     30,038,426       27,136,518       33,250       2,901,908       188,938      

    Balhae Infrastructure Fund

    		     1,059,008       2,288       1,061,216       1,056,720       133,200       —         133,200  

    Korea Credit Bureau Co., Ltd.

    		     71,245       17,322       10,000       53,923       4,853       —         4,853  

    JSC Bank CenterCredit

    		     4,510,673       4,578,854       546,794       (68,181 )      (32,191 )      32,191       —    

    KoFC KBIC Frontier Champ 2010-5(PEF)

    		     50,213       2       47,970       50,211       25,105       (386 )      24,719  

    KB GwS Private Securities Investment Trust

    		     498,606       741       425,814       497,865       133,150       (3,472 )      129,678  

    Incheon Bridge Co., Ltd.

    		     660,858       656,000       164,621       4,858       728       —         728  

    KoFC POSCO HANHWA KB shared growth Private Equity Fund No. 2

    		     100,252       1,094       90,800       99,158       24,789       —         24,789  

    Aju Good Technology Venture Fund

    		     5,249       181       5,200       5,068       1,949       49       1,998  

    KB Star office Private real estate Investment Trust No.1

    		     216,988       120,943       95,000       96,045       20,220       (413 )      19,807  

    KBIC Private Equity Fund No. 3

    		     119,885       76       102,500       119,809       2,396       —         2,396  

    RAND Bio Science Co., Ltd.

    		     2,720       5       83       2,715       2,000       —         2,000  

    isMedia Co., Ltd.2

    		     41,192       20,925       2,520       20,267       3,978       —         3,978  

    KB No.8 Special Purpose Acquisition Company

    		     22,743       2,265       1,031       20,478       19       —         19  

    KB No.9 Special Purpose Acquisition Company

    		     29,677       2,503       1,382       27,174       31       —         31  

    KB No.10 Special Purpose Acquisition Company

    		     11,795       1,628       521       10,167       20       —         20  

    KB No.11 Special Purpose Acquisition Company

    		     991       714       21       277       13       —         13  

    KB-Glenwood Private Equity Fund

    		     30,558       3,204       31,100       27,354       10       —         10  

    IMM Investment 5th PRIVATE EQUITY FUND

    		     10,114       1       10,114       10,113       9,999       —         9,999  

    Hyundai-Tongyang Agrifood Private Equity Fund

    		     15,910       375       15,360       15,535       3,957       —         3,957  

    Keystone-Hyundai Securities No. 1 Private Equity Fund

    		     112,865       73,429       34,114       39,436       1,850       —         1,850  

    KB Private Equity Fund III2

    		     51,000       —         51,000       51,000       8,000       —         8,000  

    Inno Lending Co., Ltd.

    		     1,903       1       2,000       1,902       378       —         378  

    SY Auto Capital Co., Ltd.

    		     65,292       38,981       20,000       26,311       26,311       (20,618 )      5,693  

     

        20161  
        Operating
    income    		     Profit (loss)     Other
    comprehensive
    income    		     Total
    comprehensive
    income    		     Dividends  
        (In millions of Korean won)  

    Associates

    		          

    KB Insurance Co., Ltd.

    		          

    (initial acquisition 22.59%)

    		   ￦ 11,229,942     ￦ 253,362     ￦ (19,150 )    ￦ 234,212     ￦ 7,989  

    (additional acquisition 10.70%)

    		     11,247,685       274,678       (39,203 )      235,475    

    Balhae Infrastructure Fund

    		     55,541       46,428       —         46,428       5,654  

    Korea Credit Bureau Co., Ltd.

    		     59,868       3,517       —         3,517       135  

    JSC Bank CenterCredit

    		     157,996       (13,912 )      (15,374 )      (29,286 )      1  

    KoFC KBIC Frontier Champ 2010-5(PEF)

    		     3,045       2,001       2,390       4,391       —    

    KB GwS Private Securities Investment Trust

    		     36,502       35,513       —         35,513       7,355  

    Incheon Bridge Co., Ltd.

    		     98,341       17,449       —         17,449       —    

    KoFC POSCO HANHWA KB shared growth Private Equity Fund No. 2

    		     22,411       15,002       872       15,874       —    

    KB Star office Private real estate Investment Trust No.1

    		     16,314       7,460       —         7,460       1,679  

    KBIC Private Equity Fund No. 3

    		     2,641       2,361       —         2,361       —    

    RAND Bio Science Co., Ltd.

    		     —         (112 )      —         (112 )      —    

    KB No.8 Special Purpose Acquisition Company

    		     —         317       276       593       —    

    KB No.9 Special Purpose Acquisition Company

    		     —         129       25,392       25,521       —    

    KB No.10 Special Purpose Acquisition Company

    		     —         (22 )      —         (22 )      —    

    KB No.11 Special Purpose Acquisition Company

    		     —         (12 )      —         (12 )      —    

    KB-Glenwood Private Equity Fund

    		     —         (542 )      —         (542 )      —    

    IMM Investment 5th PRIVATE EQUITY FUND

    		     —         (1 )      —         (1 )      —    

    Hyundai-Tongyang Agrifood Private Equity Fund

    		     519       (5,258 )      —         (5,258 )      —    

    Keystone-Hyundai Securities No. 1 Private Equity Fund

    		     197       (626 )      —         (626 )      —    

    Inno Lending Co., Ltd.

    		     —         (98 )      —         (98 )      —    

    SY Auto Capital Co., Ltd.

    		     20,340       6,962       —         6,962       —    

    Aju Good Technology Venture Fund

    		     50       (128 )      —         (128 )      —    

     

    1  The amounts included in the financial statements of the associates are adjusted to reflect adjustments made by the entity; such as fair value adjustments made at the time of acquisition and adjustments for differences in accounting policies.
    2  Details of profit or loss are not disclosed as the entity is classified as an associate during the fourth quarter.
    3 Details of profit or loss are not disclosed as the 3rd share acquisition of KB Insurance Co., Ltd. occurred on December 29, 2016.

     

        20171  
        Total
    assets    		     Total
    liabilities    		     Share
    capital    		     Equity     Share of
    net asset
    amount    		     Unrealized
    gains
    (losses)    		     Consolidated
    carrying
    amount    		  
        (In millions of Korean won)  

    Associates and Joint ventures

    		              

    KB Pre IPO Secondary Venture Fund 1st

    		   ￦ 10,908     ￦ 30     ￦ 11,000     ￦ 10,878     ￦ 1,601     ￦ —       ￦ 1,601  

    KB GwS Private Securities Investment Trust

    		     505,115       741       425,814       504,374       134,891       (3,471 )      131,420  

    KB-KDBC New Technology Business Investment Fund

    		     7,503       45       7,500       7,458       4,972       —         4,972  

    KB Star office Private real estate Investment Trust No.1

    		     216,041       120,462       95,000       95,579       20,122       (413 )      19,709  

    Sun Surgery Center Inc

    		     9,579       —         43       9,579       2,682       —         2,682  

    RAND Bio Science Co., Ltd.

    		     1,876       7       71       1,869       2,000       —         2,000  

    Balhae Infrastructure Company

    		     836,309       1,800       807,567       834,509       105,190       —         105,190  

    Bungaejangter Inc.

    		     5,592       3,450       43       2,142       3,484       —         3,484  

    Aju Good Technology Venture Fund

    		     20,676       250       21,400       20,426       7,856       374       8,230  

    Acts Co., Ltd.

    		     6,741       6,894       117       (153 )      500       —         500  

    SY Auto Capital Co., Ltd.

    		     79,845       51,071       20,000       28,774       14,099       (6,029 )      8,070  

    Incheon Bridge Co., Ltd.

    		     646,811       754,900       61,096       (108,089 )      (16,202 )      16,202       —    

    Big Dipper Co., Ltd.

    		     1,138       30       1,500       1,108       325       115       440  

    Builton Co., Ltd.

    		     1,418       808       321       610       800       —         800  

    A-PRO Co., Ltd.

    		     8,692       5,681       43       3,011       1,500       —         1,500  

    Inno Lending Co., Ltd.

    		     1,184       28       2,000       1,156       230       —         230  

    Paycoms Co., Ltd.

    		     1,898       1,374       810       524       800       —         800  

    Food Factory Co., Ltd.

    		     3,501       3,552       —         (51 )      1,000       —         1,000  

    KB IGen Private Equity Fund No. 1

    		     7,666       9       11,230       7,657       3       —         3  

    KB No.8 Special Purpose Acquisition Company

    		     22,920       2,369       1,031       20,551       20       —         20  

    KB No.9 Special Purpose Acquisition Company

    		     29,963       2,566       1,382       27,397       31       —         31  

    KB No.10 Special Purpose Acquisition Company

    		     11,858       1,675       521       10,183       20       —         20  

    KB No.11 Special Purpose Acquisition Company

    		     6,730       717       321       6,013       19       —         19  

    KB Private Equity Fund III

    		     50,357       —         51,000       50,357       7,899       —         7,899  

    Korea Credit Bureau Co., Ltd.

    		     75,504       19,323       10,000       56,181       5,056       —         5,056  

    KoFC KBIC Frontier Champ 2010-5(PEF)

    		     15,017       3       12,970       15,014       7,506       (386 )      7,120  

    KoFC POSCO HANHWA KB shared growth Private Equity Fund No. 2

    		     70,166       1,315       51,880       68,851       17,213       —         17,213  

    Keystone-Hyundai Securities No. 1 Private Equity Fund

    		     170,155       133,034       34,114       37,121       1,761       —         1,761  

    POSCO-KB Shipbuilding Fund

    		     7,752       247       8,000       7,505       2,345       —         2,345  

    Hyundai-Tongyang Agrifood Private Equity Fund

    		     2,466       339       320       2,127       543       —         543  

     

        20171  
        Operating
    income    		     Profit (loss)     Other
    comprehensive
    income    		     Total
    comprehensive
    income    		     Dividends  
        (In millions of Korean won)  

    Associates and Joint ventures

    		          

    KB Pre IPO Secondary Venture Fund 1st

    		   ￦ 394     ￦ (60 )    ￦ (62 )    ￦ (122 )    ￦ —    

    KB GwS Private Securities Investment Trust

    		     35,002       34,004       —         34,004       7,350  

    KB-KDBC New Technology Business Investment Fund

    		     3       (42 )      —         (42 )      —    

    KB Star office Private real estate Investment Trust No.1

    		     13,071       5,684       —         5,684       1,295  

    Sun Surgery Center Inc.

    		     —         —         —         —         —    

    RAND Bio Science Co., Ltd.

    		     —         (607 )      —         (607 )      —    

    Balhae Infrastructure Company

    		     113,441       104,942       —         104,942       12,842  

    Bungaejangter Inc.

    		     406       48       —         48       —    

    Aju Good Technology Venture Fund

    		     660       (841 )      —         (841 )      —    

    Acts Co., Ltd.

    		     3,537       (578 )      —         (578 )      —    

    SY Auto Capital Co., Ltd.

    		     15,783       2,490       (27 )      2,463       —    

    Incheon Bridge Co., Ltd.

    		     90,691       (8,719 )      —         (8,719 )      —    

    Big Dipper Co., Ltd.

    		     140       (392 )      —         (392 )      —    

    Builton Co., Ltd.

    		     1,433       58       —         58       —    

    A-PRO Co., Ltd.

    		     12,226       661       —         661       —    

    Inno Lending Co., Ltd.

    		     (751 )      (749 )      —         (749 )      —    

    Paycoms Co., Ltd.

    		     303       (170 )      —         (170 )      —    

    Food Factory Co., Ltd.

    		     3,324       (1,036 )      —         (1,036 )      —    

    KB IGen Private Equity Fund No. 1

    		     —         172       —         172       —    

    KB No.8 Special Purpose Acquisition Company

    		     —         73       —         73       —    

    KB No.9 Special Purpose Acquisition Company

    		     —         223       —         223       —    

    KB No.10 Special Purpose Acquisition Company

    		     —         29       —         29       —    

    KB No.11 Special Purpose Acquisition Company

    		     —         (262 )      —         (262 )      —    

    KB Private Equity Fund III

    		     —         (545 )      —         (545 )      —    

    Korea Credit Bureau Co., Ltd.

    		     68,750       3,580       —         3,580       149  

    KoFC KBIC Frontier Champ 2010-5(PEF)

    		     2,728       (294 )      142       (152 )      —    

    KoFC POSCO HANHWA KB shared growth Private Equity Fund No. 2

    		     21,916       8,624       129       8,753       —    

    Keystone-Hyundai Securities No. 1 Private Equity Fund

    		     5,391       (1,507 )      —         (1,507 )      —    

    POSCO-KB Shipbuilding Fund

    		     23       (495 )      —         (495 )      —    

    Hyundai-Tongyang Agrifood Private Equity Fund

    		     4,159       3,231       —         3,231       407  

     

    1  The amounts included in the financial statements of the associates and joint ventures are adjusted to reflect adjustments made by the entity; such as, fair value adjustments made at the time of acquisition and adjustments for differences in accounting policies.

     

    Changes in investments in associates and joint ventures for the years ended December 31, 2016 and 2017, are as follows:

     

        2016  
        Beginning     Acquisition
    and others    		     Disposal
    and others    		     Dividends     Gains
    (losses) on
    equity-
    method
    accounting    		     Other-
    comprehensive
    income    		     Others     Ending  
        (In millions of Korean won)  

    Associates

    		                

    KB Insurance Co., Ltd.1

    		   ￦ 1,077,014     ￦ 170,625     ￦ —       ￦ (7,989 )    ￦ 160,954     ￦ (8,410 )    ￦ —       ￦ 1,392,194  

    Hyundai Securities Co., Ltd.6

    		     —         1,349,150       (1,459,604 )      —         112,931       (2,477 )      —         —    

    Balhae Infrastructure Fund

    		     128,275       4,727       —         (5,654 )      5,852       —         —         133,200  

    Korea Credit Bureau Co., Ltd.

    		     4,580       —         —         (135 )      408       —         —         4,853  

    UAMCO., Ltd.

    		     129,707       —         (101,740 )      (26,961 )      (1,006 )      —         —         —    

    JSC Bank CenterCredit

    		     —         —         —         (1 )      1       —         —         —    

    KoFC KBIC Frontier Champ 2010-5(PEF)

    		     25,508       —         (2,900 )      —         916       1,195       —         24,719  

    United PF 1st Recovery Private Equity Fund

    		     183,117       —         (190,863 )      —         7,746       —         —         —    

    KB GwS Private Securities Investment Trust

    		     127,539       —         —         (7,355 )      9,494       —         —         129,678  

    KoFC POSCO HANHWA KB shared growth Private Equity Fund No. 2

    		     28,470       3,751       (12,000 )      —         4,578       (10 )      —         24,789  

    Incheon Bridge Co., Ltd.

    		     —         —         —         —         728       —         —         728  

    Terra Co., Ltd.

    		     21       —         —         —         7       —         —         28  

    MJT&I Co., Ltd.

    		     149       —         —         —         83       —         —         232  

    Jungdong Steel Co., Ltd.

    		     33       —         —         —         (33 )      —         —         —    

    Shinhwa Underwear Co., Ltd.

    		     56       —         —         —         47       —         —         103  

    Aju Good Technology Venture Fund

    		     —         2,000       (2 )      —         —         —         —         1,998  

    KB Star office Private real estate Investment Trust No.1

    		     19,915       —         —         (1,679 )      1,571       —         —         19,807  

    KBIC Private Equity Fund No. 3

    		     2,348       —         —         —         48       —         —         2,396  

    Sawnics Co., Ltd.

    		     1,397       —         (1,223 )      —         (174 )      —         —         —    

    RAND Bio Science Co., Ltd.

    		     —         2,000       —         —         —         —         —         2,000  

    isMedia Co. Ltd

    		     —         3,978       —         —         —         —         —         3,978  

    KB No.5 Special Purpose Acquisition Company

    		     20       —         (20 )      —         —         —         —         —    

    KB No.6 Special Purpose Acquisition Company

    		     78       —         (78 )      —         —         —         —         —    

    KB No.7 Special Purpose Acquisition Company

    		     88       —         (88 )      —         —         —         —         —    

    KB No.8 Special Purpose Acquisition Company

    		     19       —         —         —         —         —         —         19  

    KB No.9 Special Purpose Acquisition
    Company2

    		     15       4,082       (4,074 )      —         —         —         8       31  

    KB No.10 Special Purpose Acquisition
    Company3

    		     —         10       —         —         —         —         10       20  

    KB No.11 Special Purpose Acquisition Company

    		     —         10       —         —         (1 )      4       —         13  

    KB-Glenwood Private Equity Fund

    		     10       —         —         —         —         —         —         10  

    IMM Investment 5th PRIVATE EQUITY FUND

    		     —         10,000       —         —         (1 )      —         —         9,999  

    KB Private Equity Fund III

    		     —         8,000       —         —         —         —         —         8,000  

    Hyundai-Tongyang Agrifood Private Equity Fund5

    		     —         —         —         —         (688 )      —         4,645       3,957  

    Keystone-Hyundai Securities No. 1 Private Equity Fund4

    		     —         —         —         —         (3 )      11       1,842       1,850  

    Inno Lending Co., Ltd.

    		     —         398       —         —         (20 )      —         —         378  

    SY Auto Capital Co., Ltd.

    		     9,481       —         —         —         (3,788 )      —         —         5,693  
     

     

     

    		    

     

     

    		    

     

     

    		    

     

     

    		    

     

     

    		    

     

     

    		    

     

     

    		    

     

     

    		  

    Total

    		   ￦ 1,737,840     ￦ 1,558,731     ￦ (1,772,592 )    ￦ (49,774 )    ￦ 299,650     ￦ (9,687 )    ￦ 6,505     ￦ 1,770,673  
     

     

     

    		    

     

     

    		    

     

     

    		    

     

     

    		    

     

     

    		    

     

     

    		    

     

     

    		    

     

     

    		  

     

    1 Among the gain on valuation of equity method investments, ￦75,097 million includes the gains on bargain purchase
    2 Other gain of KB No.9 Special Purpose Acquisition Company amounting to ￦8 million represents the changes in interests due to unequal share capital increase in the associate.
    3 Other gain of KB No.10 Special Purpose Acquisition Company amounting to ￦10 million represents the changes in interests due to unequal share capital increase in the associate.
    4 Other gain of Keystone-Hyundai Securities No. 1 Private Equity Fund amounting ￦1,842 million represents the Hyundai Securities Co., Ltd.’s inclusion of the consolidation scope.
    5 Other gain of Hyundai-Tongyang Agrifood Private Equity Fund amounting ￦4,645 million represents the Hyundai Securities Co., Ltd.’s inclusion of the consolidation scope.
    6 Hyundai Securities Co., Ltd. is included as a subsidiary in fourth quarter, 2016.
    7 Loss on disposal of investments in associates for the year ended December 31, 2016, amounts to ￦18,812 million.

     

        2017  
        Beginning     Acquisition
    and others    		     Disposal
    and others    		     Dividends     Gains (losses)
    on equity-
    method
    accounting    		     Other-
    comprehen-
    sive income    		     Others     Ending  
        (In millions of Korean won)  

    Associates and Joint ventures

    		                

    KB Pre IPO Secondary Venture Fund 1st

    		   ￦ —       ￦ 1,671     ￦ —       ￦ —       ￦ (60 )    ￦ (10 )    ￦ —       ￦ 1,601  

    KB GwS Private Securities Investment Trust

    		     129,678       —         —         (7,350 )      9,092       —         —         131,420  

    KB-KDBC New Technology Business Investment Fund

    		     —         5,000       —         —         (28 )      —         —         4,972  

    KB Star office Private real estate Investment Trust No.1

    		     19,807       —         —         (1,295 )      1,197       —         —         19,709  

    Sun Surgery Center Inc.

    		     —         2,682       —         —         —         —         —         2,682  

    Kyobo 7 Special Purpose Acquisition Co., Ltd.

    		     —         10       (10 )      —         —         —         —         —    

    RAND Bio Science Co., Ltd.

    		     2,000       —         —         —         —         —         —         2,000  

    Balhae Infrastructure Company

    		     133,200       806       (29,202 )      (12,842 )      13,228       —         —         105,190  

    Bungaejanter Inc.

    		     —         3,484       —         —         —         —         —         3,484  

    IMM Investment 5th PRIVATE EQUITY FUND

    		     9,999       25,200       (35,185 )      —         (14 )      —         —         —    

    Aju Good Technology Venture Fund

    		     1,998       6,232       —         —         —         —         —         8,230  

    Acts Co., Ltd.

    		     —         500       —         —         —         —         —         500  

    SY Auto Capital Co., Ltd.

    		     5,693       —         —         —         2,390       (13 )      —         8,070  

    isMedia Co. Ltd

    		     3,978       —         (5,409 )      —         1,431       —         —         —    

    Incheon Bridge Co., Ltd.

    		     728       —         (728 )      —         —         —         —         —    

    KB Insurance Co., Ltd.1

    		     1,392,194       —         (1,417,397 )      (15,884 )      38,873       2,214       —         —    

    Kendae Co., Ltd.

    		     —         —         —         —         127       —         —         127  

    Big Dipper Co., Ltd.

    		     —         440       —         —         —         —         —         440  

    Builton Co., Ltd.

    		     —         800       —         —         —         —         —         800  

    Shinhwa Underwear Co., Ltd.

    		     103       —         —         —         35       —         —         138  

    A-PRO Co., Ltd.

    		     —         1,500       —         —         —         —         —         1,500  

    MJT&I Co., Ltd.

    		     232       —         —         —         (105 )      —         —         127  

    Inno Lending Co., Ltd.

    		     378       —         —         —         (148 )      —         —         230  

    Korbi Co., Ltd.

    		     —         750       (750 )      —         —         —         —         —    

    Terra Co., Ltd.

    		     28       —         —         —         (8 )      —         —         20  

    Paycoms Co., Ltd.

    		     —         800       —         —         —         —         —         800  

    Food Factory Co., Ltd.

    		     —         1,000       —         —         —         —         —         1,000  

    KBIC Private Equity Fund No. 3

    		     2,396       —         (2,763 )      —         367       —         —         —    

    KB IGen Private Equity Fund No. 1

    		     10       —         (7 )      —         —         —         —         3  

    KB No.8 Special Purpose Acquisition Company

    		     19       —         —         —         1       —         —         20  

    KB No.9 Special Purpose Acquisition Company

    		     31       —         —         —         —         —         —         31  

    KB No.10 Special Purpose Acquisition Company

    		     20       —         —         —         —         —         —         20  

    KB No.11 Special Purpose Acquisition Company2

    		     13       —         —         —         (2 )      (3 )      11       19  

    KB Private Equity Fund III

    		     8,000       —         —         —         (101 )      —         —         7,899  

    Korea Credit Bureau Co., Ltd.

    		     4,853       —         —         (149 )      352       —         —         5,056  

    KoFC KBIC Frontier Champ 2010-5(PEF)

    		     24,719       —         (17,500 )      —         (170 )      71       —         7,120  

    KoFC POSCO HANHWA KB shared growth Private Equity Fund No. 2

    		     24,789       —         (9,730 )      —         2,121       33       —         17,213  

    Keystone-Hyundai Securities No. 1 Private Equity Fund

    		     1,850       —         —         —         (85 )      (4 )      —         1,761  

    POSCO-KB Shipbuilding Fund

    		     —         2,500       —         —         (155 )      —         —         2,345  

    Hyundai-Tongyang Agrifood Private Equity Fund

    		     3,957       —         (3,830 )      (407 )      823       —         —         543  
     

     

     

    		    

     

     

    		    

     

     

    		    

     

     

    		    

     

     

    		    

     

     

    		    

     

     

    		    

     

     

    		  

    Total

    		   ￦ 1,770,673     ￦ 53,375     ￦ (1,522,511 )    ￦ (37,927 )    ￦ 69,161     ￦ 2,288     ￦ 11     ￦ 335,070  
     

     

     

    		    

     

     

    		    

     

     

    		    

     

     

    		    

     

     

    		    

     

     

    		    

     

     

    		    

     

     

    		  

     

    1 KB Insurance Co., Ltd. is included as a subsidiary in the second quarter of 2017.
    2  Other gain of KB No.11 Special Purpose Acquisition Company amounting to ￦11 million represents the changes in interests due to unequal share capital increase in the associate.
    3 Gain on disposal of investments in associates and joint ventures for year ended December 31, 2017, amounts to ￦15,113 million.

    Accumulated unrecognized share of losses in investments in associates and joint ventures due to discontinuation of applying the equity method for the years ended December 31, 2016 and 2017, are as follows:

     

         2016      2017  
         Unrecognized
    loss    		     Accumulated
    unrecognized
    loss    		      Unrecognized
    loss    		     Accumulated
    unrecognized
    loss    		  
         (In millions of Korean won)  

    Doosung Metal Co., Ltd

    		    ￦ 5     ￦ 54      ￦ (31 )    ￦ 23  

    Incheon Bridge Co., Ltd.

    		      (1,879 )      —          16,202       16,202  

    Jungdong Steel Co., Ltd.

    		      476       476        13       489  

    Dpaps Co., Ltd.

    		      188       188        (4 )      184  

    Shinla Construction Co., Ltd.

    		     27       175        7       183  

    Ejade Co., Ltd.

    		      1,112       1,112        (1,118 )      —    

    JSC Bank CenterCredit

    		      5,308       108,761        (108,761)       —    

    Myeongwon Tech Co., Ltd

    		      (43 )      —          —         —