KB Kookmin Card Enters Thai Financial Market... "First Domestic Credit Card Company"

Thai Local Goddess Specialized Financial Company 'J Fintech'
Acquires 50.99% Voting Stake for 24.8 Billion KRW

[Asia Economy Reporter Ki Ha-young] KB Kookmin Card is the first domestic specialized credit finance company to enter the Thai consumer finance market.

On the 27th, KB Kookmin Card signed a Subscription Share Agreement (SSA) to acquire shares of 'J Fintech,' a Thai specialized credit finance company engaged in consumer finance businesses such as personal loans and auto loans. The total acquisition price is 24.8 billion KRW (6.5 billion baht), and KB Kookmin Card will hold 50.99% of the voting shares of J Fintech. KB Kookmin Card plans to officially incorporate J Fintech as a subsidiary by the end of the year at the earliest, after completing approval procedures with Korean and Thai financial authorities and finalizing the acquisition deal closing.

This contract was conducted via a video conference connecting Seoul and Bangkok online due to the impact of the COVID-19 pandemic.

J Fintech is a financial subsidiary of the 'Jaymart' group, which owns the top mobile phone distribution and debt collection companies in Thailand. Established in 2011, it has about 130 employees and 18 branches, with total assets of 151.6 billion KRW and a net profit of 2.6 billion KRW as of the end of last year, making it a mid-sized specialized credit finance company.

This contract marks the third overseas financial company acquisition following Cambodia and Indonesia since President Lee Dong-cheol took office. It is expected to accelerate the overseas business expansion strategy centered on Southeast Asian countries mentioned in the New Year's address earlier this year.

In particular, this entry is the first case since the 1998 International Monetary Fund (IMF) crisis for domestic banks and specialized credit finance companies to enter Thailand through new licensing or mergers and acquisitions. It is expected to serve as a foothold for other major KB Financial Group affiliates, such as KB Kookmin Bank, to enter the Thai market in the future.

The Thai consumer finance market is estimated to be about 410 trillion KRW as of 2018 and has maintained a stable growth rate of around 8% annually over the past five years. It has built one of the best credit infrastructures in Southeast Asia, and thanks to the government's cashless policy, the credit card market is also growing at an average annual rate of over 7%, making various credit businesses, including credit cards, highly accessible.

After incorporating J Fintech as a subsidiary, KB Kookmin Card plans to reduce borrowing costs through funding guaranteed by the headquarters and improve the soundness of existing assets, reorganizing its portfolio to focus on high-quality assets. To strengthen its business infrastructure and diversify sales channels, it will utilize 192 stores nationwide owned by 'Jaymart Mobile,' a subsidiary of the Jaymart group, as exclusive markets and continuously expand branches mainly in major regional hubs nationwide.

A KB Kookmin Card official said, "Based on the successful experience of entering Indochina Peninsula countries such as Cambodia and Laos, we will make the acquired company one of the top consumer finance companies in Thailand within 10 years," adding, "We will continue to extend KB Kookmin Card’s unique overseas expansion success story in major Southeast Asian countries."

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