KB Capital Starts Operations in Indonesia... Second Overseas Subsidiary

Soonindo Gukmin Best Finance Starts Operations in Jakarta
Plans to Provide New and Used Car Financial Services

At the end of last year, Hwang Su-nam, CEO of KB Capital (center front row), is taking a commemorative photo with Kim Se-min, Head of Management Division at KB Capital (fourth from the left in the front row), Nugroho from Sun Motor Group (second from the left in the front row), and local subsidiary executives and employees.

[Asia Economy Reporter Ki Ha-young] KB Capital has obtained final approval for the establishment of its local subsidiary in Indonesia, 'Sun Indo Gukmin Best Finance,' and officially began operations in Jakarta, the capital of Indonesia, on the 2nd. This is the second local subsidiary following KB Koraorising in Laos.

Sun Indo Gukmin Best Finance plans to provide new and used car financing services by leveraging the network of Sun Motor Group, which operates automobile retail and hotel and real estate businesses throughout Indonesia. The company intends to gradually expand its business areas to include consumer goods installment plans, motorcycle installment plans, and rental cars in the future.

KB Capital acquired an 85% stake in Sun Indo Parama Finance, a multi-finance affiliate of Indonesia's Sun Motor Group, to establish the local subsidiary Sun Indo Gukmin Best Finance.

Indonesia sold approximately 1.03 million vehicles last year alone and is the largest automobile market in Southeast Asia, achieving stable economic growth at around 5% annually. It is regarded as a market with very high growth potential due to its population of about 270 million, the fourth largest in the world, and a young demographic with an average age of 29.

Additionally, KB Financial Group affiliates operating locally, such as Bukopin Bank (KB Kookmin Bank holds a 22% stake, the second largest shareholder), KB Insurance, and KB Kookmin Card Corporation, enable the establishment of a stable cooperative system in Indonesia.

Hwang Su-nam, CEO of KB Capital, stated, "Indonesia has growth potential not only in terms of its demographic structure but also industrially. However, since the economic slowdown caused by the COVID-19 pandemic is ongoing in Indonesia as well, we plan to actively utilize Sun Motor Group's captive market to ensure the rapid early stabilization of Sun Indo Gukmin Best Finance."

Meanwhile, KB Capital started operations of its local subsidiary KB Koraorising in Laos in February 2017 and achieved early profitability by mid-2018. It has now firmly established itself in the Laos market and continues to carry out steady business activities.

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