KB Kookmin Bank Ends Legal Battle with Indonesia's Bukopin Bank

Bukopin Bank Normalization Efforts Gain Momentum

[Asia Economy Reporter Park Sun-mi] As Indonesia's Bosowa Group withdrew its damage compensation lawsuit against KB Kookmin Bank, the normalization process of KB Bukopin Bank managed by Kookmin Bank gained further momentum.

According to the financial sector on the 9th, Kookmin Bank signed an agreement to withdraw the damage compensation lawsuit with Bosowa Group, the former largest shareholder of Bukopin Bank, at the Ritz-Carlton Hotel in Jakarta on the 7th. Kookmin Bank has made efforts, including contacting high-level officials of Bosowa Group, to reach an amicable resolution.

The main agreement contents include ▲ withdrawal of all lawsuits against KB Kookmin Bank ▲ no future lawsuits related to KB Bukopin Bank investments ▲ cooperation for the development of KB Bukopin Bank.

Cho Nam-hoon, Head of KB Kookmin Bank's Global Business Group (Executive Vice President), said, "The lawsuit issue with Bosowa Group has been well resolved, and a cooperation agreement has been signed," adding, "We will now focus on the normalization of KB Bukopin Bank."

KB Kookmin Bank, which has been evaluated as a ‘successful entry into Indonesia’ through the acquisition of Indonesia's Bukopin Bank, was unexpectedly caught up in a large-scale lawsuit battle earlier this year. The claimed damage compensation amount was about 1.6 trillion KRW, twice the capital of Bukopin Bank at 800 billion KRW.

Bosowa Group, the second-largest shareholder of Bukopin Bank, filed a damage compensation claim of 1.6295 trillion KRW against Kookmin Bank and the Indonesian Financial Services Authority (OJK), arguing that Kookmin Bank's acquisition of Bukopin Bank's management rights violated local Indonesian laws and regulations, and that they must compensate for the resulting monetary damages (such as stock acquisition costs) and non-monetary damages (such as time loss and loss of market trust).

KB Kookmin Bank invested a total of 400 billion KRW to acquire 67% of Bukopin Bank's shares in Indonesia last August, becoming the largest shareholder and securing management rights. Bosowa Group was demoted to the second-largest shareholder with an 11.6% stake through this process.

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