KB Financial Group said Friday that it has received regulatory approval from the Federal Reserve to operate as a finance holding company in the U.S. market.

With the eligibility endorsed, the South Korean group has been entitled to carry out comprehensive financial businesses for both commercial banking and nonbanking in North America.

KB Financial, which was operating only KB Kookmin Bank in the U.S., had to apply for the finance holding firm status as its acquisition target, LIG Insurance, has U.S. incorporation as well as its Korean headquarters and operations.

The group recently completed its takeover of LIG Insurance at home and abroad, and plans to actively develop nonlife insurance products in use of distribution channels of KB Kookmin branches in the U.S.

The group is pinning high hopes on LIG ― Korea’s No. 4 nonlife insurer, which tapped the U.S. market by opening a liaison office in New York in 1987 ― to hold competitiveness in the formerly weak nonbanking segment.

“Following KB Kookmin, the firm has become the second-largest unit of our financial group, based on assets,” a KB spokesman said.

While the assets of LIG came to 24 trillion won ($21 billion) as of March, its brand name will likely be changed to “KB Nonlife Insurance” during the group’s extraordinary shareholders meeting, slated for June 24.

With the joining of KB Nonlife, the group expects the ratio of nonbanking units’ collective net profit of the total figure to reach about 40 percent from the current 30 percent.

The group has also pushed for bolstering the securities and credit card sectors over the past few years.

By Kim Yon-se (kys@heraldcorp.com)