Seoul-based consumer loan provider KB Kookmin Card said on April 27 that it had signed a deal to buy a controlling 50.99 percent stake in J Fintech, a Thailand-based personal loan provider, for 650 million baht ($20 million).
This marks the first acquisition deal that allows a South Korean credit card company to enter the Thai financial market since the Asian financial crisis in 1997.
KB Kookmin Card CEO Lee Dong-cheol holds a copy of an agreement at the company`s headquarters during an online signing ceremony with Jaymart Group Chairman Adisak Sukumvitaya on April 27. (KB Kookmin Card) |
The deal is awaiting approval from the financial authorities in Korea and Thailand. The credit card company expects it to be closed by the end of 2020.
J Fintech is a financial subsidiary of mobile phone distributor Jay Mart. Engaging in the business of lending money under the brand “J Money,” collecting bad debt and writing off nonperforming loans, J Fintech recorded a 67 million baht net profit in 2019.
Jay Mart currently holds 95.65 percent of shares in J Fintech. KB Kookmin Card will buy J Fintech’s newly issued shares.
As Korea’s third-largest credit card company, KB Kookmin Card has made inroads into the consumer loan service market in Southeast Asia since Lee Dong-chul took the top post in 2018. KB Kookmin Card took over a Tomato Specialized Bank deal in Cambodia in 2018 and signed a deal to acquire Indonesian lender Finansia Multi Finance in 2019.
“The deal will serve as a cornerstone for financial units under the umbrella of KB Financial Group, including KB Kookmin Bank, to enter into Thai market” the consumer lender said in a statement.
KB Kookmin Card is a wholly owned arm of KB Financial Group, Korea’s largest banking group by total assets. The net profit of KB Kookmin Card in 2019 rose 10.5 percent on-year to 316.55 billion won ($257.1 million).
By Son Ji-hyoung(consnow@heraldcorp.com)