KB Financial approved for credit card unit spinoff

South Korea's financial watchdog approved KB Financial to spin off credit card operations from its flagship Kookmin Bank.

The new entity, tentatively named KB Kookmin Card Co., will be launched on March 2 with equity capital of US$2.1 billion and 1,261 employees, the Financial Services Commission said.


KB Financial's plan to establish an independent credit card unit came as part of its efforts to diversify its business portfolio as it now relies heavily on banking operations.