KB Kookmin Bank Obtains Preliminary Approval for Establishing Local Subsidiary in Myanmar

Preliminary Approval for Myanmar Banking Subsidiary
Enabling Total Financial Services for Corporate and Individual Customers in Myanmar

[Asia Economy Reporter Kangwook Cho] KB Kookmin Bank announced on the 10th that it has obtained a preliminary banking license from the Central Bank of Myanmar.

KB Kookmin Bank has been granted a preliminary license for a local subsidiary and is expected to obtain the final official license after a nine-month preparation period. Banks licensed as local subsidiaries can engage in corporate and retail banking, establish up to 10 branches, and are qualified to perform virtually all banking operations.

The Myanmar financial market is still infrastructure-deficient but has high growth potential, making it an attractive market for domestic banks and often referred to as the "post-Vietnam." It is one of the key countries in KB Financial Group's global strategy. KB Kookmin Bank, which has transferred housing finance know-how to Myanmar through its past Micro Finance Institution business, plans to contribute to Myanmar's emerging economic growth by providing a wider range of advanced financial services following the acquisition of the preliminary banking license.

In 2017, KB Kookmin Bank signed a tripartite Memorandum of Understanding (MOU) with Myanmar's Ministry of Construction and the Construction and Housing Development Bank (CHIDB) based on mutual cooperation. Prior to that, in 2014, KB Kookmin Bank formed a business partnership with the Construction and Housing Development Bank of Myanmar. The bank has continuously fostered consensus to discover collaboration models through workshops and support in banking and IT sectors. In March 2017, KB Microfinance Corporation was established, and since then, it has opened 17 branches, supporting housing finance and electricity-related loan products to expand affordable housing supply and improve living environments, which are key policy tasks of Myanmar's Ministry of Construction, maintaining strong growth.

The Myanmar government recently announced a policy goal to supply one million affordable housing units, raising expectations for the third phase of banking sector liberalization. In line with this, KB Kookmin Bank plans to focus on areas where it excels, leveraging its strengths in housing finance and retail banking developed in Korea.

A KB Kookmin Bank official explained, "By obtaining the preliminary banking license in Myanmar, we plan to expand our business to include digital banking services for local customers, housing subscription processes, mortgage loans, corporate finance, and infrastructure finance."

KB Kookmin Bank has also continued its corporate social responsibility (CSR) activities by supporting the remodeling of a Korean language CBT (Computer Based Test) exam center in Yangon, Myanmar, this year to improve convenience for Myanmar test-takers. The bank plans to support one-stop services using digital platforms to assist Myanmar workers in taking Korean language exams in the future.

A KB Kookmin Bank official stated, "Myanmar is a country with a high level of economic growth and potential among Southeast Asian nations and a geopolitical hub connecting China, India, and ASEAN. Through establishing a local subsidiary in Myanmar, we plan to provide more diverse and advanced comprehensive financial services and become a leading foreign bank in Myanmar's financial market."

This content was produced with the assistance of AI translation services.