'Crisis as a Bargain Buying Opportunity' KB Financial Considers Additional Acquisition of Southeast Asian Financial Firms

[Asia Economy Reporter Park Soyeon] KB Financial is actively seeking mergers and acquisitions (M&A) opportunities by identifying undervalued assets in the Southeast Asian market amid the COVID-19 pandemic crisis.

According to the investment banking (IB) industry on the 16th, KB Financial Group is pursuing global retail financial company M&As centered on Southeast Asia.

A KB Financial official stated, "We must seize opportunities when everyone hesitates because things are difficult," adding, "We are currently reviewing M&A activities."

After acquiring Baldris Securities, ranked among the top 10 securities firms in Indonesia last year, KB Financial is reportedly reviewing acquisitions of banks, card companies, and leasing firms in Southeast Asian regions such as Cambodia, Singapore, and Myanmar, placing them on their M&A list.

KB Financial is interpreted to have concluded that companies seeking new growth engines amid the prolonged COVID-19 pandemic and the Ukraine war must actively engage in M&A. Due to the prolonged pandemic, various assets have emerged in the Southeast Asian market, and especially as the financial market undergoes restructuring, domestic financial institutions are expected to increase acquisitions of undervalued M&A assets.

An IB industry official explained KB Financial’s proactive approach, saying, "When the economy is good, all institutions expand overseas and increase assets, leading to fierce competition and rising asset prices," adding, "They have learned from multiple past experiences that crises are opportunities to secure good assets." He further explained, "The intention is to proactively purchase undervalued assets globally."

Previously, KB Kookmin Bank became the second-largest shareholder by acquiring a 22% stake in Bank Bukopin, a mid-sized Indonesian bank, in 2018. In September 2020, it secured an additional 67% stake, becoming the largest shareholder. Besides Indonesia, it has expanded into Cambodia, Singapore, and Myanmar. Last year, Kookmin Bank acquired an additional 30% stake in its Cambodian local subsidiary Prasac Microfinance, making Prasac a 100% subsidiary of Kookmin Bank.

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