KB Securities, the securities arm of the KB Financial Group, is looking for a further push into the Indonesian financial industry as it waits for the regulatory approval of its acquisition of the Indonesian brokerage platform.
It is seen as a move to enter into one of the largest markets in South East Asia though no details have been shared as to the name of the brokerage firm that it is looking to acquire. It is estimated that it has invested around 50 billion won for this acquisition and an agreement on terms of the deal about share transfer and new shares have already been decided and the deal is waiting for approval from the financial authority in Indonesia.
It is also reported by the South Korean newspapers that the target of the acquisition could be Valbury Sekuritas Indonesia which is one of the companies owned by the Valbury Group which is into currency exchange services as well. Once this deal goes through, it is likely to be a massive growth for the South Korean group as it would provide it an entry into the Indonesian market which is already growing at a very fast pace and has always been known to be a strong market in South East Asia for financial firms. KB Securities already operates companies in the US, Hong Kong, and Vietnam as well and this Indonesia arm would be another feather in its cap.
It is not the first entry of the KB Group into Indonesia as already five of its group companies, KB Kookmin Bank, KB Insurance, KB Kookmin Card, KB Capital, and KB Data Systems have units in Indonesia. Once this acquisition goes through, it is likely to be the sixth financial services firm from South Korea to set foot in Indonesia. The financial industry in different parts of Asia has been undergoing a lot of churns and big companies and investors are looking to enter into various sectors of the industry as they realize that this industry is set to boom in the coming years. Regions like Europe and the US are likely to get saturated which means that Asia, Middle East, and Africa are going to be the regions where the companies and financial firms are going to focus their attention in the future in a bid to maximize their presence and ensure that they are in the prime position when the growth and expansion in the region begins.