KB Financial Group’s drive to win back its former glory as the nation’s leading banking group is going well so far, with its key banking business back on track and a new insurance unit kicking off as planned.

Its imminent challenge is now to build up a brokerage department and thus to redeem its relatively weak nonbanking portfolio ― which is why the group has one eye fixed on the possible takeover of blue chip KDB Daewoo Securities.

Though KB Financial has refrained from defining its stance, there is little doubt in the market that it will take part in the race to acquire the brokerage house once it is put out for sales in the second half of the year.

“We are, of course, keeping a keen eye (on KDB Daewoo Securities) as we need to take our brokerage sector to a higher level,” said a KB Financial spokesperson.

“But financial authorities should first confirm the detailed disposal processes, before we may start an actual working-level review (on whether or not to hand in the bid).”

The Financial Services Commission is expected to let the disposal issue rest during the July-August summer holidays season and start the discussion from scratch in September at the earliest.

KB Financial, which already possesses mid-sized KB Investment & Securities, is to rise at once as the market champion by incorporating the brokerage unit ― and the given scenario is considered highly plausible.

Boosted by its earnings in the first quarter, KDB Daewoo Securities’ market valuation is estimated to have soared a great deal, perhaps up to 3 trillion won ($2.7 billion), but it the market consensus is that KB Financial may be able to afford it.

“KB Financial has sufficient capacity to acquire KDB Daewoo Securities, even considering the management control premium factor,” said Shinhan Investment through a report earlier this month.

KB Financial Group rose to become the nation’s No. 1 banking group in assets as of the end of the first quarter, beating market champion Shinhan Financial Group by 29 trillion won.

It also recently launched KB Insurance, the renewed version of LIG Insurance, which it acquired late last year, thus expanding its nonbanking business portfolio and gesturing to move onto securities as its next task.

But one standing challenge for the banking group is that KDB Daewoo Securities is likely to be offered in a package deal with the KDB Life Insurance.

Korea Development Bank invested 850 billion won last year in an effort to sell off the unprofitable insurer, but failed to find a buyer.

Despite such difficulties, observers predict that KB will remain in the game as market rival Shinhan Financial Group may otherwise take the initiative.

By Bae Hyun-jung (tellme@heraldcorp.com)