Three financial holding companies - KB Financial, Shinhan Financial and Woori Financial Group - said risk factors included in U.S. Securities and Exchange Commission annual reports related to expanding productive and inclusive finance were required under the U.S. disclosure system and were not intended to discriminate against domestic investors.

In a statement on May 15, the three firms said annual reports (Form 20-F) filed as foreign companies listed on the U.S. securities market are prepared in line with SEC disclosure rules and investor protection principles. They said the filings are based on the same facts as domestic business reports, but U.S. disclosure rules require broader descriptions of potential risks and uncertainties.

They said this was not meant to provide additional information to specific investors or discriminate against domestic investors, but reflected differences in disclosure methods stemming from the U.S. securities law requirement for full disclosure and systems to respond to litigation risks.

They said the mention of a possible impact on soundness during the expansion of productive and inclusive finance was one of many potential risk items.

The three firms said the investment risk section of a Form 20-F submitted to the SEC typically spans dozens of pages and lists more than 40 risk factors. They said major overseas financial holding companies disclose risk factors at a similar level.

They said U.S. disclosures require comprehensive descriptions of various possible scenarios to protect investors and defend issuers against legal liability. They said the filings also include potential risk factors and uncertainties such as geopolitical risks in the Middle East, possible changes in household loan regulations and the industrial impact of advances in AI technology.

Separately from disclosures, the financial holding companies also said they agree with the government's policy direction on productive and inclusive finance.

They said they are continuing efforts to contribute to national economic development and to expand the social role of finance by broadening access to finance for ordinary people, small business owners and small and medium-sized companies, and by strengthening funding supply to venture businesses, new industries and the real economy.

They said each company's credit system is designed and operated in line with internal risk assessment and systemic risk management. They said they are pursuing policies while fully considering long-term benefits from the goal of maintaining a sound financial system.

The three firms said they will continue to manage disclosures so that appropriate disclosures are made by comprehensively considering domestic and overseas regulatory requirements and investor protection principles.