Proposal of retirement pension for □ □ □

1. Proposal of retirement pensionfor □ □ □ KB pension business department

2. 1. Investment products offered on DC pension plan and past performance • Principal guaranteed product gives the promised rate of return at the maturity date. • KB has 19 performance based products for DC participants. Assets of each fund are invested to various types of stocks like Dividend stock, Value stock, Growth stock, Overseas stock.

3. 1. Investment products offered on DC pension plan and past performance • Investment options are suggested, according to participants’ intention and inclination to invest. • Due to investment regulations(by FSS), the equity exposure of DC investments is limited up to 40%. So the funds that KB can recommend to DC participants are Bond Mixed funds. • Optimal Portfolio would be suggested during face to face counseling given to each participant. Stable -inclined Neutral Stable Aggressively invested Investment -inclined

4. [Appendix] sample of DC investment • These are the real example of DC investment S co., Male 58 M co.,Female 67 D co., Male 74 • Rate of return : 6.23% • Start from Mar. 2009 • Rate of return : 5.73% • Start from May. 2008 • Rate of return : 14.65% • Start from April 2009

5. 2. DC product selection/review process • Product selection process Product Line-up Process Structure Research Report (Internal) Product Selection Committee Report (34 AMCs) Product Filtering Historical Performance Data Reference (Research Companies) Report (Fund Rating Agencies) Fund Rating Agencies Product Selection Dept. Retirement Business Dept. Trust Business Dept. Affiliated Product Dept.

6. 2. DC product selection/review process • Product review process - KB had kicked out several fund products that showed bad performances General checking factors of Review process

7. [Appendix] Most defensive funds list in the bear market. • Article from Mae-il Kyung-je newspaper (on Aug. 15th, 2011) KB has them!

8. [Appendix] Most profitable funds in the retirement pension market • Data from Zero-in(Fund research company) as of Aug. 31, 2011 • Bond mixed fund ranking in the retirement pension market (There are almost 300 bond mixed funds in the market) KB has them!

9. 3. Plan and experience • Contracts, participants, Reserve amount • Comparison of vendors’ reserves (As of end of June, 2011) (As of end of Sep.,2011) (bil. Won) (tril. Won) 1st 2nd Total retirement pension reserve amount▲ (including DB, DC, IRA) DC reserve amount▲

10. 4. Support on employee education • Organization to support employee education • Dedicated team for ○○○ Korea

11. 4. Support on employee education • List of employee education

12. 4. Support on employee education • Image of employee education KB cyber education center▲ Open lecture : Q&A ▲ KB guide books and Video clips ▲ KB retirement pension call center ▲

13. 4. Support on employee education • Face to face counseling • The time and the place for counseling booth are decided by HR and informed to vendors at least two weeks in advance. • Counselor analyses the investment inclination of each employee and suggest optimal portfolio and recommend products which are suitable for the suggested portfolio. • It takes 10~ 30 minutes for each employee to be counseled. • The investment order signed by each employee completes the subscription process. • These pictures are taken at the real counseling booth that KB open at U** Korea. It takes generally 30 minutes to give counseling to each participant. For overseas participants, webcam and internet phone are used to communicate from time to time.▲

14. 5. Consent process • Consent process begins with gathering opinions of employees. To make the best pension plan for both employees and employer, much communication between them are needed. Employees are not easy to gather in a place at the same time, so education session and consent are often implemented at a time. Survey Session/Q&A Follow-up Consent

15. 5. Consent process • Supporting activities of KB

16. 6. Ongoing DC administration support • Various educational materials are offered for HR team to operate pension plan well. • Retirement pension account reports • Account information for employers • Account status • Products/rate of return • Guide book(DB/DC) • Educate retirement pension operating method and process • Investment recommendation • Market status and investment strategy • Sent by E-Mail • Retirement pension market news • Legal issues • KB retirement pension news • Published by KB financial research center • Monthly report on industry • Real estate market • Stock/Bond market • Internet banking guidebook • Operating by Internet • Q&A book on retirement pension regulations. • Theory of investment, retirement plan design • Material for HR team • Video clips on retirement pension system and investment activities 동영상 자료

17. 6. Ongoing DC administration support • Once or twice in a year, HR staff of ○○○ Korea will be invited to KB retirement pension academy. This event will help HR staff to share the issues of retirement pension market and get useful information of operating retirement pension system. • The pictures of KB retirement pension academy. • KB retirement pension academy will be held once or twice in a year. In this event, HR staffs of many companies can share information about retirement pension system and issues.▼

18. 6. Ongoing DC administration support • KB prepares many legally-mandatory education programs for HR. • First, KB sends legal education materials by post, more than once in a year. • Second, KB opens cyber educational center for employees. If employees study in this center, the records are to be informed to HR team, so that they can check if employees get legally-mandatory education or not. • Third, KB offers information sessions for employees. They are provided by KB pension specialists. • Legal education materials are sent by post every year.▶ • ◀Cyber education center opens around the clock. HR staff can check if employees get education from it. ◀Information sessions for employees are offered by KB pension specialists.

19. 6. Ongoing DC administration support • Through web system, HR can operate frequently occurred functions. • Make inquiries about participants’ information • Registration information of each participants • Retirement benefits amount (Total, of each participant) • Transfer contribution amounts and service fees • Reserve retirement payment by inputting date and reason of retirement

20. 7. Ongoing DB administration support • KB offer IFRS reports for free. • Abundant experience on calculating and providing retirement benefits obligation to large corporate, KOSDAQ-listed enterprises, etc. • Wages of long-term employees, the expected retirement expenses of next year, the retirement expenses per a person (for the purpose of cost accounting) can be also provided. • IFRS reports can be offered monthly, quarterly or yearly basis(This follows company’s requests). It takes two weeks for KB to complete IFRS reports from receiving law data.

21. 8. Ongoing DC participant Service • The pictures of DC counseling booth • Retirement pension counseling team KB counsels all DC participants of ○○○ face to face, at least once in a year. At this booth, we offer general information of retirement pension account, advices on portfolio construction, product selection, etc. This counseling booth can be held at each and every local office of ○○○ Korea. ◀

22. 8. Ongoing DC participant Service • Educational materials for DC participants ◀What is the retirement pension? This book is given by post when a participant opens a pension account at KB. You can learn about retirement pension system and get the basic investment theory from this book. ◀Internet banking guide You can learn how to use internet banking system and smart phone banking system from this book Monthly Fund report▶ You can check the performance of each retirement pension fund from this report. Monthly investment guide▶ You can learn how to invest your financial asset and get the best of it.

23. 8. Ongoing DC participant Service • Retirement pension service by internet banking, smart phone banking, ATM, Call center • Internet banking : KB has independent address of web site (www.kbpension.co.kr), and you can also access this web site through main home page’s link. KB provides a full English version of it(identical to Korean version) so foreign participants have no difficulty in using it. • KB has launched retirement pension service through smart phone banking for the first time among banks. You can check your pension account at any time and you can even transfer your voluntary contributions through your smart phone. • KB has almost 10,000 ATM nationwide. By ATM, you can also check your registration info., contribution reserve amount, valuated amount of reserves, expected retirement benefits(in case of DB) as of today. • If you have any difficulty in using above mentioned tool or you have any questions on your pension account, you can be helped by KB retirement pension call center, too. KB retirement pension call center has a phone number(1599-0099) separated from main call center(1599-9999). This means specialized consultants on retirement pension(more than 141 people) will respond to each call. Call centers are located in Seoul and DaeJeon. 1599-0099 Retirement pension call center at Dae-Jeon.▼ ▲Retirement pension service menu on ATM Smart phone banking▶

24. 9. Fees • Fee table • The plan administration fee of the first year is exempted about the amount that is transferred from other vendor. • Fee discount for long-term contract • KB discount service fees for the first time among banks and other banks tend to follow KB’s fee structure. • There’s no discount in security companies’ fee structure as yet. Some of the insurance companies give a discount only on the plan administration fee and that from the 3rd year. • KB is the first vendor which gives a discount both on plan administration fee and on asset management fee.

25. 10. Multi- national Company client list • Only major companies are sorted out among more than 200 multi-national company clients.

26. 11. Financial stability • Credit ratings • KB’s credit ratings are always the highest of all financial institutions. • KB’s overseas credit ratings are the same as that of the sovereign ratings of Republic of Korea. • BIS ratio • BIS ratio has always been higher than 8% which means KB always keeps its financial condition sound and stable.

27. 12. Other services offered to participants • Financial service • Educational & Cultural service

28. 12. Other services offered to participants • Personal Life service • Leisure Service

29. 13. Multiful language support • English and Japanese services are provided. • Multi-national company team of KB retirement pension department will join in the conference call meeting. Recommendation of products and investment choices are often discussed. • English version of plan document and service contracts are also provided, if they are needed. • KB provides a full version of English website. In this site, much information about products, regulations and simulators can be found. This also helps foreign participants understand KB’s service spectrum and get useful information. A conference call meeting with overseas staff s in charge of corporate pension is frequently held. KB produces meeting materials in English and gives opinions to participants at this meeting. ▶ ▼English version of KB retirement pension web site. Foreigners can use retirement pension service menu without any difficulties. English documents are frequently provided .▼

30. 14. KB retirement pension Service Channel Reports and Educational materials Pension business department • Support organization in main office • Including actuary, tax accountant, labor attorney, CPA • Management status report • KB retirement pension Monthly Report • KB retirement pension legal education materials • Other customized investment reports 1,151 branches nationwide • Largest branch network in financial sector • 2,290 staffs for pension service(As of 2nd Q of 2011) KB retirement pension service channel Smart Phone Banking • Participants info. • Accounts info. • Reserve amount • Inquiry on additional contributions Designated branch • Additional services like loan rate discount and foreign exchange • Designated near the place of business Internet banking • ISO27001 international security authentication • English version is also provided. • All functions for managing pension accounts are available. • Cyber retirement pension education center Call center 9,425ATM nationwide • 1599-0099 • 141 consultants who respond on inquiry of retirement pension • Inquiry on retirement pension information • User authentication through bank book or card