On 21 July 2009, a number of media outlets reported that KB Financial Group Inc. (KB) is planning to team up with International Finance Corporation (IFC) to acquire a further 20.5% stake in Bank CenterCredit (BCC), taking their total holding to 51%. This move will further enhance KB's overseas footprint, which should reinforce its long term growth potential. However, considering the likely impact of the economic downturn in South Korea over our investment horizon…

The KB Financial Group Inc. (KB) common stock has appreciated significantly since our last update report, reflecting positive investor reaction to a rise in the National Association of Home Builders/Wells Fargo index of home builder confidence to its highest level since last September. However, we remain concerned about the near term impact of the economic downturn in South Korea and ongoing volatility in financial markets, as well as the…

The South Korean economy contracted by 3.4% in 4Q 08 (versus growth of 3.8% in 3Q 08), and grew by 2.5% in 2008 overall (versus growth of 5.0% in 2007). Government forecasts point to a fall of 2% in GDP during 2009, with the economy being hard hit by the unfolding financial crisis. However, the IMF takes a bleaker view, forecasting a fall of 4% in 2009 GDP (source: The Korea Times, 03 February 2009)....