KakaoBank's first overseas bet pays off as Superbank soars in Indonesia IPO

Executives and employees of KakaoBank and Superbank pose for a commemorative photo during a listing ceremony for Superbank at the Indonesia Stock Exchange in Jakarta, Wednesday. Courtesy of KakaoBank

Superbank, an Indonesian digital bank in which KakaoBank made its first overseas equity investment, made a successful stock market debut on the Indonesia Stock Exchange, KakaoBank said Thursday.

Korea’s largest internet-only bank invested in Superbank in October 2023 as part of a strategic partnership with Grab aimed at expanding its footprint in Southeast Asia.

Superbank’s market capitalization was estimated at around 2.4 trillion won ($1.6 billion) on its first day of trading Wednesday, about 2.6 times higher than its valuation of 900 billion won at the time of KakaoBank’s initial investment.

KakaoBank CEO Yun Ho-young

Market response in Indonesia was strong, with the offering attracting more than 1 million bids and a subscription ratio of 318 to 1. On its first trading day, Superbank’s shares surged about 25 percent from the initial public offering (IPO) price of 635 rupiahs.

KakaoBank’s investment has also generated a substantial valuation gain. After investing a combined 114 billion won in Superbank in 2023 and 2024, the Korean lender now expects the value of its stake to reach about 204.4 billion won following the IPO.

KakaoBank has pioneered a new model for overseas expansion with a technology-driven strategy, moving away from costly and high-risk mergers and acquisitions.

Instead of acquiring local banks, it opted to transplant its core mobile banking technology into a local partner, achieving the rare feat of both an IPO and profitability within two years, setting a new benchmark for Korea’s financial exports.

Going beyond a simple equity investment, KakaoBank has worked closely with Superbank from its launch through product development and app design, sharing its mobile banking expertise to support the delivery of innovative financial services in Indonesia.

Leveraging differentiated digital products and ecosystem synergies with shareholders such as Grab, Superbank quickly gained market traction, turning profitable within nine months and growing its customer base to more than 5 million.

Building on its proven partnership with Superbank, KakaoBank plans to accelerate overseas expansion by diversifying both its business models and target markets beyond Southeast Asia.

“KakaoBank has proven the strength and scalability of its mobile technology-based global strategy by delivering concrete results aligned with its core capabilities,” said KakaoBank CEO Yun Ho-young, also known as Daniel Yun. “We will continue to build a global digital banking network to secure sustainable growth over the long term.”