JB chairman seeks more M&As in Southeast Asia

JB Financial Group Chairman Kim Ki-hong speaks during a press conference at the Conrad Seoul on Yeouido in Seoul, Tuesday. / Courtesy of JB Financial Group

By Park Jae-hyuk

JB Financial Group will continue to pursue M&A deals in the Southeast Asian market amid the growing competition and saturation of the local financial market, according to the head of the North Jeolla Province-based banking group, Tuesday.

“For now, we are looking for more M&A deals in Cambodia, Myanmar and Vietnam,” JB Financial Group Chairman Kim Ki-hong said at a press conference in Seoul which was held to mark his 100th day in office.

“The economic growth rates of Southeast Asian countries are much higher than Korea's, but most of their financial markets have yet to be fully developed, so their markets are highly likely to grow further.”

The chairman said the company is considering making inroads in Vietnam, where it has an office. Regarding Cambodia and Myanmar, where JB runs its subsidiaries, the chairman said his company has been looking for ways to expand its presence there, adding it has been doing well and built strong networks in those countries.

With its flagship Jeonbuk Bank, the group acquired Cambodia's PPC Bank in 2016 to provide loan services to local retail customers and small- and medium-sized enterprises. JB Woori Capital, another key unit of the group, also established a microfinance company in Myanmar.

Kim also said the group will expand its financial services for foreign workers throughout Korea.

The group's flagship Jeonbuk Bank has helped foreign workers access financial services, after hiring employees from Thailand, Cambodia and the Philippines for its Suwon Foreign Financial Center in Gyeonggi Province.

“Given that we have offered financial services for foreign workers earlier than other banks and accumulated a large amount of customer data, I think we can have a competitive edge over our rivals in this field,” the chairman said.

Meanwhile, the chairman promised to increase dividends in line with its shareholder-friendly policy. He also said JB will continue its digitization drive with an open banking platform to maximize investment efficiency and follow the future trends in financial services.