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| KB Kookmin Bank CEO Hur Yin |
KB Kookmin Bank has gained two important footholds for its continuous expansion in Southeast Asia ― Cambodia and Myanmar.
The KB Financial Group's banking unit said Sunday it finished paying $603 million Friday for a 70 percent stake in Prasac Microfinance Institution, the largest microfinance deposit-taking institution in Cambodia.
The recent takeover allowed KB Financial to include Prasac in its subsidiaries.
KB Kookmin, which has pushed forward the Prasac takeover since its board of directors agreed on the plan in December 2019, said it will additionally acquire the remaining 30 percent stake in the Cambodian financial firm.
According to the Korean bank, Prasac has around 180 networks in the Southeast Asian country, with a 41.4 percent market share and a 29.4 percent return on equity in 2018. Its net income amounted to $78 million that year.
"The recent acquisition of Prasac will be a significant turning point for our bank to expand the Asian retail networks," a KB Kookmin official said. "In the long run, we aim to become the leading bank in Cambodia by transforming Prasac into a commercial bank."
In Myanmar, KB Kookmin received a preliminary approval for a banking license Thursday, along with state-run Korea Development Bank and Industrial Bank of Korea.
The bank expects to receive a final approval after completing a nine-month preparatory period.
If it receives final approval, KB Kookmin will be allowed to establish up to 10 branches in Myanmar and conduct all types of banking, including corporate and retail finances.
