Government-owned Korea Development Bank (KDB) is seeking M&A with Indonesian financial firms to expand its presence in Southeast Asia, according to an industry source. The development bank is reportedly interested in an Indonesian financial firm offering various financial services, including leasing, consumer financing and credit card financing, with Deloitte Korea as its agent. The source said it is easier to acquire financial companies in Indonesia as there are fewer regulations than for buying a commercial bank, which is tied to tighter rules and requires huge capital.
KDB is said to be a late player in the Southeast Asian financial market. This new move is part of its goal to expand beyond Korea’s saturated financial market, where commercial and policy banks are currently struggling to generate positive cash flow amid low interest rates. KDB has offices in Bangkok, Ho Chi Minh City, Yangon and Manila, which it runs out of its office in Hong Kong. The bank also established a representative office in Indonesia in February.
Source: Asia-First.com | 1 August 2019