KB Financial Group Yang Jong-hee

The corporate value of KB Financial Group has strengthened significantly under the leadership of chairman Yang Jong-hee over the past year, as evidenced by about 70 percent surge in the firm share price since his Nov. 21 inauguration last year, market watchers said Tuesday.

Underpinning further robust growth outlook is his growth strategy defined by greater shareholder returns and bolstering transparent and stable corporate governance.

Also at play is the group-wide commitment to exemplary business practices to lock in the trust of shareholders and stakeholders, a foundation Yang considers pivotal to creating a long-term sustainable corporate value profile.

Many say the top financial group by net income remains a model industry leader in the green initiative, as exemplified by the issuance and financing of green bonds. Its active engagement in carbon-neutrality drive is well recognized by the Carbon Disclosure Project (CDP) and the Dow Jones Sustainability Indices (DJSI).

"The stock valuation is highly notable," an industry watcher said.

"The performance of financial group shares has gained strong momentum over the past few quarters but KB is the one that stands out."

The top priority of Yang has been bolstering the long-term value of the group and shareholder returns.

About 820 billion won ($580 million) of firm shares will be purchased for cancellation this year, the greatest amount in the industry to date.

He pledged to orient excess capital exceeding the Common Equity Tier 1 ratio of 13 percent to pay dividends to shareholders and for stock buybacks for cancellation by the end of the year.

Yang expanded the share of outside directors in the makeup of board of directors, boosting transparency in the decision-making process.

Also fortified were the oversight and consult responsibility of the outside directors who are experts in law, finance and accounting.

The chairman pledged last week to drive growth in quality, in line with the government's Corporate Value-up Program.

"The aim of KB Financial will be qualitative growth, a goal underpinned by our shareholder return policies," he said during an annual meeting with shareholders on Thursday.

KB provides financial assistance for green projects, as mediated by green bonds issuance and renewable and infrastructure investments. These efforts are a point of great appreciation by global investors.

Global environmental, social and corporate governance evaluators, including CDP, lauded the group. The entity is in partnership with an international nonprofit Climate Group to help influential businesses commit to the zero-carbon drive on a global scale.

According to FnGuide, a financial market data provider, KB's estimated net profit for this year is around 5.1 trillion won.

The group's non-banking businesses constituted 44 percent of the net income, up from 37 percent the previous year.

KB's share price surged to a 52-week high of 103,900 won, Oct .25, and has since slid to around 92,000 won.