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| KB Capital CEO Hwang Soo-nam |
By Lee Kyung-min
KB Capital, a car lease and rental services affiliate of KB Financial Group, has signed a deal to acquire an 85 percent stake in Sunindo Parama Finance, a car lease financing unit under Sun Motor Group, a leading automotive dealer in Indonesia, the company said Friday.
The acquisition is part of a continued push by KB Financial to expand its presence in the Southeast Asian country.
Following the deal, KB Capital will provide lease and financing services for cars sold by Sun Motor Group there.
Upon acquisition, the firm will seek to expand lease and long-term financing programs to include not only new cars but also used cars, rental cars and other high-price commodities.
In order for the firm to better settle there, KB Financial will seek cooperation from its established business channels there including Bank Bukopin and a corporate entity of KB Insurance.
KB acquired a 22 percent stake Bank Bukopin and became its second-largest shareholder in July 2018.
The entrance into the Southeast Asian country is expected to boost success of KB Capital which posted 2.1 billion won ($1.8 million) in net income in 2018, a "stunning" recovery from a net loss of 1.1 billion won a year earlier.
Its sales jumped to 87.4 billion won in 2018, nearly double from a year earlier.
The success came only a year after it set up a joint venture with KOLAO Group, a Laos-based company whose businesses include car leasing and banking.
Established in 1974, Sun Motor Group specializes in the car rental and hotel business. Its business partners include Mitsubishi, Suzuki, Nissan, Chevrolet, Toyota, and MAN Truck vehicles there, according to its website.
