KB Securities Acquires Indonesian Brokerage for 55 Billion Won... "Aiming to Enter Southeast Asia's Top 5"

Acquisition of 65% Stake in Balbury Securities Indonesia
Active Expansion into Southeast Asian Market

[Asia Economy Reporter Minwoo Lee] KB Securities is acquiring a mid-sized Indonesian securities firm for 55 billion KRW. Through this, it plans to actively target the Southeast Asian market.

KB Securities announced on the 12th that, following the Indonesian Financial Services Authority (OJK)'s approval of 'change of controlling shareholder and capital increase,' it will secure a 65% stake in the local 'Valbury Securities' for approximately 55 billion KRW. After the completion of the share acquisition transaction, it plans to launch the Indonesian corporation within the first quarter of this year. Valbury Asset Management, a subsidiary of Valbury Securities, will also be incorporated as a sub-subsidiary.

Valbury Securities is a mid-sized Indonesian securities firm established in 2000. As of the third quarter of last year, it recorded an annual return on equity (ROE) of 12.1%. It is known to have strengths in traditional brokerage (retail brokerage) with a nationwide network of 18 branches.

Through this acquisition, KB Securities plans to actively target the Southeast Asian region. Previously, KB Securities acquired the local Vietnamese securities firm KBSV in 2017. As of the end of November last year, this securities firm had grown to a capital of 196 billion KRW and total assets of 470 billion KRW. Based on this experience, KB Securities plans to leverage its excellent IT services and capital strength to elevate Valbury Securities into a top 5 securities firm leading the Indonesian and Southeast Asian financial markets.

Kim Seonghyun, CEO of KB Securities, said, "Indonesia is a leading country in Southeast Asia with growth potential, having a population of 270 million and the world's 15th largest gross domestic product (GDP). We expect rapid growth through synergy with four affiliates, including KB Kookmin Bank, which has already entered the market, and we will contribute to the development of the Indonesian capital market."

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