6-K 1 d6k.htm FORM 6-K Form 6-K
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SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

Form 6-K

 

 

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 OR 15d-16 UNDER

THE SECURITIES EXCHANGE ACT OF 1934

For the month of March 2008

 

 

Kookmin Bank

(Translation of registrant’s name into English)

 

 

9-1, 2-Ga, Namdaemun-Ro, Jung-Gu, Seoul, Korea 100-703

(Address of principal executive office)

 

 

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

Form 20-F      X            Form 40-F              

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):             

Note: Regulation S-T Rule 101(b)(1) only permits the submission in paper of a Form 6-K if submitted solely to provide an attached annual report to security holders.

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):             

Note: Regulation S-T Rule 101(b)(7) only permits the submission in paper of a Form 6-K if submission to furnish a report or other document that the registration foreign private issuer must furnish and make public under the laws of the jurisdiction in which the registrant is incorporated, domiciled or legally organized (the registrant’s “home country”), or under the rules of the home country exchange on which the registrant’s securities are traded, as long as the report or other document is not a press release, is not required to be and has not been distributed to the registrant’s security holders, and if discussing a material event, has already been the subject of a Form 6-K submission or other Commission filing on EDGAR.

Indicate by check mark whether by furnishing the information contained in this Form, the registrant is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

Yes                      No      X    

 

 

 


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ON MARCH 4, 2008, KOOKMIN BANK FURNISHED A PUBLIC NOTICE REGARDING THE CONVOCATION OF ITS GENERAL MEETING OF SHAREHOLDERS FOR THE FISCAL YEAR 2007.

 

THE AGENDA FOR THE ANNUAL GENERAL MEETING OF SHAREHOLDERS TO BE HELD ON MARCH 20, 2008 WAS ALSO RELEASED THROUGH TWO KOREAN DAILY NEWSPAPERS, AND THE DETAILED CONTENTS OF SUCH AGENDA ARE ALSO CURRENTLY BEING DISTRIBUTED TO SHAREHOLDERS OF KOOKMIN BANK FOR THEIR REFERENCE AS THEY EXERCISE THEIR VOTING RIGHTS.

 

AGENDUM 1. APPROVAL OF NON-CONSOLIDATED FINANCIAL STATEMENTS (BALANCE SHEET, INCOME STATEMENT AND STATEMENT OF APPROPRIATION OF RETAINED EARNINGS) FOR THE FISCAL YEAR 2007

   3

AGENDUM 2. AMENDMENT OF THE ARTICLES OF INCORPORATION

   4

AGENDUM 3. APPOINTMENT OF DIRECTOR(S)

   7

AGENDUM 4. APPOINTMENT OF CANDIDATE(S) FOR THE MEMBERS OF THE AUDIT COMMITTEE WHO ARE NOT NON-EXECUTIVE DIRECTORS

   9

AGENDUM 5. APPOINTMENT OF CANDIDATE(S) FOR THE MEMBERS OF THE AUDIT COMMITTEE WHO ARE NON-EXECUTIVE DIRECTORS

   10

AGENDUM 6. APPROVAL OF AGGREGATE REMUNERATION LIMIT FOR DIRECTORS

   11


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Agenda for Annual General Meeting of

Shareholders for the Fiscal Year 2007

AGENDUM 1. APPROVAL OF NON-CONSOLIDATED FINANCIAL STATEMENTS (BALANCE SHEET, INCOME STATEMENT AND STATEMENT OF APPROPRIATION OF RETAINED EARNINGS) FOR THE FISCAL YEAR 2007

Please find the following Exhibits attached to this document:

Exhibit Index

 

99.1

   Non-consolidated Balance Sheets as of December 31, 2007 and 2006

99.2

   Non-consolidated Income Statements for the Years Ended December 31, 2007 and 2006

99.3

   Non-consolidated Statements of Appropriations of Retained Earnings for the Years Ended December 31, 2007 and 2006


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AGENDUM 2. AMENDMENT OF THE ARTICLES OF INCORPORATION

 

CURRENT

  

AMENDED (DRAFT)

  

REMARK

Article 5 (Method of Public Notices)

 

Public notices of the Bank shall be made in the Seoul Shinmun, a daily newspaper published in Seoul. However, if the Seoul Shinmun is not available due to circumstances beyond the Bank’s control, the public notices of the Bank shall be given in the Dong-a Ilbo.

  

Article 5 (Method of Public Notices)

 

 Public notices of the Bank shall be made in the Seoul Shinmun, a daily newspaper published in Seoul. However, if the Seoul Shinmun is not available due to circumstances beyond the Bank’s control, the public notices of the Bank shall be given in the Dong-a Ilbo.

  

(new Paragraph)

   Notwithstanding the provisions of Paragraph (1) above, a public notice of the financial statements pursuant to Article 41 of the Bank Act may be made by posting an electronic copy of the financial statements on the Korea Federation of Banks website.    Adding a new method for public notices of financial statements

(new Article)

  

Article 10-2 (Convertible Shares)

 

 The Bank may, pursuant to a resolution of the Board of Directors, issue shares that are convertible into common shares or preferred shares, in an amount not exceeding 20% of the total number of issued and outstanding shares of the Bank.

 

The issue price of the new shares issued upon conversion shall be equal to the issue price of the convertible shares prior to conversion, and the number of shares to be issued upon conversion shall be equal to the number of common shares or preferred shares prior to conversion.

 

ƒ The conversion period shall be determined by a resolution of the Board of Directors and shall be a period that commences no earlier than 1 year, and ends no later than 10 years, from the issue date.

 

For the purpose of any distribution of dividends on the shares issued upon conversion, Article 14 hereof shall apply mutatis mutandis.

  

Providing basis for issuing convertible shares


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CURRENT

  

AMENDED (DRAFT)

  

REMARK

(new Article)   

Article 10-3 (Redeemable Shares)

 

 At the time of issuance of preferred shares, the Bank may, pursuant to a resolution of the Board of Directors, issue such preferred shares as redeemable shares that can be retired at the Bank’s discretion using its profits.

 

The redemption price shall be the “issue price + additional amount”, where the additional amount shall be determined by a resolution of the Board of Directors at the time of issuance of such redeemable shares, considering various factors such as the dividend rate, market condition and general circumstances related to the issuance of such redeemable shares.

 

ƒ The redemption period for the redeemable shares shall be a period falling between (x) the day following the close of the Ordinary General Meeting of Shareholders for the fiscal year in which the redeemable shares were issued and (y) one month after the close of the Ordinary General Meeting of Shareholders for the fiscal year in which the 20th anniversary of the issue date falls, as determined by a resolution of the Board of Directors; provided, however, that in the case of redeemable shares which are required to be redeemed by the Bank upon the expiration of the redemption period, to the extent that any of the conditions listed below have occurred and remain outstanding, the redemption period shall be extended until such conditions have been resolved:

 

1. The holders of the redeemable shares did not receive the preferential dividends to which they are entitled.

 

2. The Bank is unable to redeem the redeemable shares during the redemption period due to a lack of sufficient profits.

 

The Bank may redeem the redeemable shares in whole at once or in part in installments; provided that, if the Bank is redeeming the redeemable shares in part, the Bank may select the shares to be redeemed by lottery, or proportionally from each holder. Fractional shares resulting from proportional redemption shall not be redeemed.

   Providing basis for issuing redeemable shares


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CURRENT

  

AMENDED (DRAFT)

  

REMARK

  

If the Bank wishes to redeem the redeemable shares, the Bank shall provide public notice specifying its intention to redeem, the redeemable shares to be redeemed and a period of no less than one month during which holders will be required to present their share certificates to the Bank. The Bank must separately provide notice to the shareholders registered in the Bank’s registry of shareholders and the registered pledgees. Upon the expiration of period mentioned above, the Bank shall mandatorily redeem the redeemable shares.

 

At the time of issuance of redeemable shares, the Bank may, pursuant to a resolution of the Board of Directors, issue the redeemable shares as convertible shares as provided for in Article 10-2 hereof.

  
   ADDENDUM   
(new Article)      
  

Article 1 (The date of enforcement)

This Article of Incorporation will take effect on and after March 20th of 2008(2008/3/20).

  


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AGENDUM 3. APPOINTMENT OF DIRECTOR(S)

List of Nominees for Executive Directors

 

Name

(Date of Birth)

  

Current

Position

  

Career

  

Relationship
with the
largest
shareholder

  

Transactions
with the
Bank during
the past 3
years

 

Recommended by

Yong Hwa Cheong

(Newly appointed)

(07/12/1952)

   Director, Business Operating Division, National Credit Union Federation of Korea   

•    Director, Bank Examination Department 1, Financial Supervisory Service

 

•    Director, Examination Planning & Coordination Department, Financial Supervisory Service

 

•    Assistant Governor, Financial Supervisory Service

   None    None   Audit Committee Member Nominating Committee

In Gyu Choi

(Newly appointed)

(12/23/1955)

   Senior Executive Vice President & Head of the Strategy Group, Kookmin Bank   

•    General Manager, Strategic Planning Team, Kookmin Bank

 

•    General Manager, Seochobuk Branch, Kookmin Bank

 

•    General Manager, Human Resources Supporting Department, Kookmin Bank

 

•    Executive Vice President, Strategic Planning Division, Kookmin Bank

   None    None   CEO & President

Donald H. MacKenzie

(Newly appointed*)

(12/20/1948)

   Senior Executive Vice President & CFO, Kookmin Bank   

•    Partner, KPMG Peat Marwick

 

•    Vice President, Goldman Sachs

 

•    Managing Director, ING Barings

 

•    Country Manager, ING Bank Japan

 

•    Senior Executive Vice President & CRO, Kookmin Bank

   None    None   CEO & President

 

* Donald H. MacKenzie previously served as an executive director of Kookmin Bank from 2003 to 2006.


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List of Nominees for Non-Executive Directors

 

Name

(Date of Birth)

  

Current

Position

  

Career

  

Relationship
with the
largest
shareholder

  

Transactions
with the
Bank during
the past 3
years

 

Recommended by

Dam Cho

(Reappointed)

(08/01/1952)

   Professor, Chonnam National Univ.   

•   Lecturer, Hongik Univ.

 

•   Advisory Professor, Samsung Fire & Marine Insurance Co., Ltd.

 

•   President, Korean Financial Management Association

   None    None   Non-Executive Director Nominating Committee

Suk Sig Lim

(Newly appointed)

(07/17/1953)

   Professor, Univ. of Seoul   

•   Assistant Professor, Univ. of Alberta

 

•   Member, Examination Committee, FSS

 

•   Vice President, Korea Accounting Institute

 

•   Non-executive Director, Korea Ratings

   None    None   Non-Executive Director Nominating Committee

Sang Moon Hahm

(Newly appointed)

(02/02/1954)

   Dean, KDI School of Public Policy and Management   

•   Assistant Professor, Virginia Tech

 

•   Chief Researcher, Korea Institute of Finance

 

•   Professor, KDI School of Public Policy and Management

   None    None   Non-Executive Director Nominating Committee

Han Kim

(Newly appointed)

(02/17/1954)

   President & Chairman, Uclick   

•   Executive Director, Daishin Securities Co., Ltd.

 

•   Vice Chairman, Meritz Securities Co., Ltd.

 

•   Non-executive Director, Dongyang Fire & Marine Insurance Co., Ltd.

   None    None   Non-Executive Director Nominating Committee

Chan Soo Kang

(Newly appointed)

(11/23/1961)

   President & Chairman, Kang & Company. Ltd.   

•   Executive Director, BT Wolfensohn

 

•   CEO, Seoul Securities Co., Ltd.

 

•   Adjunct Professor, Ewha Womans Univ.

   None    None   Non-Executive Director Nominating Committee


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AGENDUM 4. APPOINTMENT OF CANDIDATE(S) FOR THE MEMBERS OF THE AUDIT COMMITTEE WHO ARE NOT NON-EXECUTIVE DIRECTORS

List of Nominee for member of Audit Committee who is not Non-Executive Director

 

Name

(Date of Birth)

  

Current

Position

  

Career

  

Relationship
with the
largest
shareholder

  

Transactions
with the
Bank during
the past 3
years

 

Recommended by

Yong Hwa Cheong

(Newly appointed)

(07/12/1952)

   Director, Business Operating Division, National Credit Union Federation of Korea   

•   Director, Bank Examination Department 1, Financial Supervisory Service

 

•   Director, Examination Planning & Coordination Department, Financial Supervisory Service

 

•   Assistant Governor, Financial Supervisory Service

   None    None   Audit Committee Member Nominating Committee


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AGENDUM 5. APPOINTMENT OF CANDIDATE(S) FOR THE MEMBERS OF THE AUDIT COMMITTEE WHO ARE NON-EXECUTIVE DIRECTORS

List of Nominees for members of Audit Committee who are Non-Executive Directors

 

Name

(Date of Birth)

  

Current

Position

  

Career

  

Relationship
with the
largest
shareholder

  

Transactions
with the
Bank during
the past 3
years

 

Recommended by

Kee Young Chung

(Reappointed)

(09/07/1948)

   Professor, Accounting Keimyung Univ. (C.P.A)   

•   President, Korea Accounting Institute

 

•   Chairman, Korea Accounting Association

 

•   Member, Examination Committee, FSS

   None    None   Audit Committee Member Nominating Committee

Dam Cho

(Reappointed)

(08/01/1952)

   Professor, Chonnam National Univ.   

•   Lecturer, Hongik Univ.

 

•   Advisory Professor, Samsung Fire & Marine Insurance Co., Ltd.

 

•   President, Korean Financial Management Association

   None    None   Audit Committee Member Nominating Committee

Suk Sig Lim

(Newly appointed)

(07/17/1953)

   Professor, Univ. of Seoul   

•   Assistant Professor, Univ. of Alberta

 

•   Member, Examination Committee, FSS

 

•   Vice President, Korea Accounting Institute

 

•   Non-executive Director, Korea Ratings

   None    None   Audit Committee Member Nominating Committee

Han Kim

(Newly appointed)

(02/17/1954)

   President & Chairman, Uclick   

•   Executive Director, Daishin Securities Co., Ltd.

 

•   Vice Chairman, Meritz Securities Co., Ltd.

 

•   Non-executive Director, Dongyang Fire & Marine Insurance Co., Ltd.

   None    None   Audit Committee Member Nominating Committee

Chee Joong Kim

(Newly appointed)

(12/11/1955)

   Partner, Barun Law   

•   Presiding Judge, Seoul Eastern District Court

 

•   Presiding Judge, Seoul Administrative Court

 

•   Presiding Judge, Patent Court

 

•   Presiding Judge, Seoul High Court

   None    None   Audit Committee Member Nominating Committee


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AGENDUM 6. APPROVAL OF AGGREGATE REMUNERATION LIMIT FOR DIRECTORS

 

    

Annual General Meeting of
Shareholders for the fiscal year 2001

  

Annual General Meeting of
Shareholders for the fiscal year 2007

No. of Directors (No. of Non-executive Director)    13
(10)
   15
(10)
Aggregate Remuneration Limit    8 billion Won    8 billion Won*

 

* 8 billion Won will be proposed as the maximum amount of aggregate remuneration that may be disbursed to the directors of Kookmin Bank for the fiscal year 2008. The board of directors will approve and ratify the payment allocation. Additionally, 140,000 shares (or the equivalent amount) will be proposed as the maximum aggregate amount of shares that may be disbursed from October 30, 2007 to October 29, 2010 to the directors of Kookmin Bank as long-term incentives over the term of their office. The board of directors will approve and ratify the standard and method of allocation and payment of such shares.


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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

  Kookmin Bank
  (Registrant)
Date: March 4, 2008   By:  

/s/ Donald H. MacKenzie

  (Signature)
  Name:   Donald H. MacKenzie
  Title:   Senior EVP / CFO


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Exhibit 99.1

KOOKMIN BANK

NON-CONSOLIDATED BALANCE SHEETS

AS OF DECEMBER 31, 2007 AND 2006

 

     Korean Won
     2007    2006
     (In millions)

ASSETS

     

Cash and due from banks

   (Won) 6,544,754    (Won) 6,568,306

Securities

     30,777,359      29,382,480

Loans

     171,549,993      149,867,182

Tangible assets

     2,298,743      2,137,732

Other assets

     7,695,189      7,250,781
             
   (Won) 218,866,038    (Won) 195,206,481
             

LIABILITIES AND SHAREHOLDERS’ EQUITY

     

LIABILITIES:

     

Deposits

   (Won) 138,858,691    (Won) 130,019,916

Borrowings

     50,250,481      39,042,684

Other liabilities

     13,719,105      11,088,924
             
     202,828,277      180,151,524
             

SHAREHOLDERS’ EQUITY :

     

Common stock

     1,681,896      1,681,896

Capital surplus

     6,258,297      6,258,297

Accumulated other comprehensive income

     356,412      899,542

Retained earnings

     7,741,156      6,215,222
             
     16,037,761      15,054,957
             
   (Won) 218,866,038    (Won) 195,206,481
             

 

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Exhibit 99.2

KOOKMIN BANK

NON-CONSOLIDATED STATEMENTS OF INCOME

FOR THE YEARS ENDED DECEMBER 31, 2007 AND 2006

 

     Korean Won
     2007    2006
     (In millions except per share amounts)

OPERATING REVENUE:

     

Interest income:

     

Interest on due from banks

   (Won) 13,007    (Won) 27,973

Interest on securities

     1,440,186      1,350,320

Interest on loans

     12,146,901      10,652,569

Other interest income

     36,522      32,026
             
     13,636,616      12,062,888
             

Gain on valuation and disposal of securities:

     

Gain on valuation of trading securities

     3,570      14,113

Gain on disposal of trading securities

     95,174      53,230

Gain on disposal of available-for-sale securities

     808,396      182,325

Reversal of impairment loss on available-for-sale securities

     31,784      84,443
             
     938,924      334,111
             

Gain on disposal of loans

     27,112      36,311
             

Foreign exchange trading income

     533,862      245,067
             

Commission income

     1,571,103      1,341,814
             

Fees and commissions from trust accounts

     93,406      97,141
             

Dividends income

     10,956      7,492
             

Other operating income:

     

Gain on derivatives trading

     2,922,375      4,419,007

Gain on valuation of derivatives

     1,262,897      935,487

Gain on valuation of fair value hedged items

     212,295      35,828

Other operating income

     72,280      103,728
             
     4,469,847      5,494,050
             

Total operating revenues

     21,281,826      19,618,874
             
     

OPERATING EXPENSES:

     

Interest expenses:

     

Interest on deposits

     4,144,124      3,433,480

Interest on borrowings

     2,449,474      1,796,009

Other interest expenses

     81,336      54,991
             
     6,674,934      5,284,480
             

Loss on valuation and disposal of securities:

     

Loss on valuation of trading securities

     50,745      7,191

Loss on disposal of trading securities

     88,785      48,084

Loss on disposal of available-for-sale securities

     24,977      15,283

Impairment loss on available-for-sale securities

     75,710      124,266
             
     240,217      194,824
             

Gain on valuation and disposal of Loans:

     

Provision for possible loan losses

     533,952      1,009,498

Loss on disposal of loans

     8,555      17,222
             
     542,507      1,026,720
             

Foreign exchange trading losses

     309,848      295,880
             

Commission expenses

     593,123      464,400
             

General and administrative expenses

     3,693,254      3,225,155
             

(Continued)

 

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KOOKMIN BANK

NON-CONSOLIDATED STATEMENTS OF INCOME (CONTINUED)

FOR THE YEARS ENDED DECEMBER 31, 2007 AND 2006

 

     Korean Won
     2007    2006
     (In millions except per share amounts)

Other operating expenses:

     

Provision for acceptances and guarantees losses

     18,125      8,932

Loss on derivatives trading

     2,785,890      4,080,808

Loss on valuation of derivatives

     1,548,944      1,015,822

Loss on valuation of fair value hedged items

     4,061      31,517

Other operating expenses

     637,537      785,353
             
     4,994,557      5,922,432
             

Total operating expenses

     17,048,440      16,413,891
             

OPERATING INCOME

   (Won) 4,233,386    (Won) 3,204,983

NON-OPERATING REVENUE

     444,899      366,293

NON-OPERATING EXPENSES

     148,415      163,681
             

INCOME BEFORE INCOME TAX

     4,529,870      3,407,595

INCOME TAX EXPENSE

     1,756,027      935,484
             
     

NET INCOME

   (Won) 2,773,843    (Won) 2,472,111
             

BASIC NET INCOME PER SHARE (In currency units)

   (Won) 8,246    (Won) 7,349
             

DILUTED NET INCOME PER SHARE (In currency units)

   (Won) 8,228    (Won) 7,349
             

 

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Exhibit 99.3

KOOKMIN BANK

NON-CONSOLIDATED STATEMENTS OF APPROPRIATIONS OF RETAINED EARNINGS

FOR THE YEARS ENDED DECEMBER 31, 2007 AND 2006

 

     Korean Won  
     2007     2006  
     (In millions)  

RETAINED EARNINGS BEFORE APPROPRIATIONS:

    

Retained earnings (accumulated deficit) carried forward from prior years

   (Won) 95     (Won) 59  

Effect on valuation of securities using the equity method

     (20,400 )     (1,582 )

Net income

     2,773,843       2,472,111  
                
     2,753,538       2,470,588  
                

APPROPRIATIONS:

    

Legal reserve

     277,400       247,300  

Voluntary reserve

     1,651,500       994,900  

Dividend

     824,129       1,227,784  

Other reserve

     476       509  
                
     2,753,505       2,470,493  
          

UNAPPROPRIATED RETAINED EARNINGS TO BE CARRIED FORWARD TO SUBSEQUENT YEARS

   (Won) 33     (Won) 95  
                

 

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