"Entry into Cambodia Rice Market"… KB Kookmin Card Acquires Local Company

Expanding Scope from Installment Financing to Leasing

[Asia Economy Reporter Minwoo Lee] KB Kookmin Card is expanding into the leasing market following its entry into the installment finance market in Cambodia.

On the 12th, KB Kookmin Card announced that it completed the acquisition of shares in the local Cambodian leasing company 'iFinance Leasing (IFL)' at the end of last year and finalized its incorporation as a subsidiary.

Established in 2014, IFL is a mid-tier leasing company in Cambodia operating motorcycle and three-wheeler leasing businesses with four branches in Phnom Penh and major provincial cities. As of the end of 2021, it had total assets of approximately $12.5 million (about 15.6 billion KRW), equity capital of $2.15 million, and 98 employees.

KB Kookmin Card acquired 100% of IFL's shares together with its subsidiary 'KB Daehan Special Bank' and will begin full-scale operations starting this year.

In the short term, the company plans to ▲secure new customers by diversifying products such as motorcycles, automobiles, and agricultural machinery ▲reduce procurement costs and strengthen price competitiveness by utilizing KB Kookmin Card’s payment guarantees ▲improve soundness through the establishment of a credit evaluation system ▲expand the proportion of high-quality assets through optimized loan screening.

In the mid to long term, KB Kookmin Card plans to integrate the leasing company into 'KB Daehan Special Bank,' expand its sales areas to provinces, and provide a 'one-stop' service for installment finance and leasing products.

A KB Kookmin Card official said, "With the new business expansion in the Year of the Black Rabbit, we have secured additional provincial branches in Cambodia and laid the foundation for sustainable growth through business diversification. We will further solidify our position as the number one specialized credit finance company in Cambodia."

Lee Chang-kwon, President of KB Kookmin Card (left), is taking a commemorative photo with Sok Chamroeun, Chairman of the Board of Directors of iFinance Leasing, after signing a stock purchase agreement for acquiring shares of iFinance Leasing in Phnom Penh, Cambodia, on October 18 last year. (Photo by KB Kookmin Card)

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