JB Financial Group Targets Indonesian Financial Market with Approval to Acquire Local Credit Finance Company
On September 8, JB Financial Group announced that it has received approval from the Indonesian Financial Services Authority (OJK) for the change of major shareholder in the local credit finance company, PT KB Bukopin Finance.
Last year, JB Woori Capital entered into a share purchase agreement to acquire an 85% stake in PT Bank KB Indonesia Tbk (KBI), a subsidiary of KB Kookmin Bank, and PT KB Bukopin Finance for approximately 2.9 billion yen (about 2.9 billion yen).
KB Bukopin Finance is a local Indonesian financial company established in 1983. It provides a variety of credit financial services, including corporate finance and operating capital finance. As of the end of last year, it operated its main office in Jakarta and eight business locations, with a workforce of 124 employees. Its total assets were 1,160,496,000,000 rupiah (approximately 92.8 billion won), representing a 78.7% increase compared to the previous year. Net income for the period was recorded at 1,913,100,000 rupiah.
JB Financial Group characterized this acquisition as a strategic investment to secure a key Southeast Asian hub that will drive sustainable growth. Indonesia is the most populous country in Southeast Asia and has an average annual economic growth rate of around 5%. JB Financial Group plans to enhance its profitability and financial soundness in a balanced manner by combining the local customer and business network in Indonesia with the expertise in auto finance, corporate finance, credit evaluation, and risk management that JB Woori Capital has accumulated domestically and abroad.
Once the acquisition is complete, JB Financial Group will finalize an equity investment in the Indonesian subsidiary of AI-based fintech company Aizenglobal. By integrating Aizenglobal’s data and mobility operations know-how with the local business foundation of the acquired company, JB Financial Group will enter the electric vehicle (EV) finance sector. The group plans to offer a range of financial products tailored to the Indonesian market, including loans for the purchase of electric two-wheelers, unsecured loans, and battery purchase financing for electric two-wheelers.
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JB Financial Group is currently operating local financial businesses in Cambodia, Myanmar, and Vietnam. Upon completion of this acquisition, the group will establish a presence in Indonesia, thereby expanding its financial business base across the Southeast Asian market. Kim Kimoon, Chairman of JB Financial Group, stated, "This acquisition is an important turning point for JB Financial Group to establish a long-term growth base in Indonesia," adding, "By combining the credit and risk management capabilities of JB Woori Capital with Aizenglobal’s data-driven mobility expertise in the local financial platform, we will create a differentiated business model for the Indonesian market."
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