KB Kookmin Bank will merge its two affiliates in Cambodia; Prasac Microfinance Institution and Kookmin Bank Cambodia.
In 2020, KB acquired a 70 per cent stake in Prasac and purchased the remaining 30 per cent in 2021. Kookmin Bank has operated banking and foreign exchange services in Cambodia as a commercial bank but acquired Prasac to drive growth in a competitive market.
The combined net profit of Prasac and Kookmin Bank Cambodia is reported to be the second-largest following that of ABA in the Kingdom based on the results for the first half of 2023.
Cambodia has a high number of banks and MFI – as many as 59 commercial banks, nine specialised banks, and 87 microfinance institutions in 2023.
Cambodian authorities granted preliminary approvals for the KB merger it was reported by the Korea Times, adding that KB will be able to operate as a combined entity as soon as a legal license is issued.
KB has targeted the region as part of ot diversification aims and sees Southeast Asia as a major future revenue stream. In July of 2023, Korea’s largest banking group announced it intended to increase global operations to 40% of total revenue by 2040 at the latest.
KB Financial Group Chairman and Chief Executive Yoon Jong-kyoo said “I’m leading this group with the goal of increasing the global proportion to 40% from the current 10%.