KB Financial Group Stock Plunges 6.98% Amid Insolvency Fears

KB Financial Group's stock price plummeted to its lowest level since April 2024, with an intraday decline of 6.98%.

The primary factor influencing the recent decline in KB Financial Group's stock price is the warning signs of corporate insolvency in the Korean economy. According to data released by KB Kookmin, the number of companies classified as "likely to become insolvent" has increased significantly. This trend suggests potential risks within the financial sector, which could impact KB Financial Group due to heightened credit risk and potential losses from loans to these marginal companies. As a major financial institution, KB Financial Group may need to implement strategies to mitigate these risks, which could affect its stock performance.