JB Financial taps into Indonesia with KB Bank subsidiary acquisition

JB Financial Group, a regional financial service provider based in South Korea, is set to acquire a controlling stake in Indonesian installment financing subsidiary PT KB Bukopin Finance, under a plan to expand its presence in the Southeast Asian country.

JB Woori Capital, a credit financing unit under JB Financial, will acquire an 85 percent stake in PT KB Bukopin Finance from KB Bank Indonesia at 29 billion won ($21 million), according to JB Financial Chair Kim Ki-hong’s announcement made at an earnings conference call held Thursday. The entities signed a stock purchase agreement on July 1.

PT KB Bukopin Finance, under KB Kookmin Bank’s troubled Indonesian unit KB Bank Indonesia, specializes in installment financing. It turned profitable last year, posting a 1.05 billlion won in net profit.

JB Financial also announced it is set to invest 15 billion won in Korean fintech company Aizen under a share subscription agreement sealed on Tuesday. It will acquire a 40 percent stake in the company's Indonesian unit.

Aizen ventured into the local market by agreeing to cooperate with Southeast Asian mobility platform giant Grab in providing an electric motorbike rental solution in 2023.

Based on a strategic partnership with PT KB Bukopin Finance and Aizen, JB Financial plans to expand its business portfolio in the country.

“With loans provided by Bukopin Finance, Aizen can purchase electronic bikes and vehicles and rent them to platform operators such as Grab and Gojek,” Kim said.

"The interest rate will likely be around 12 percent. Since the partnership involves major platforms, the risk is practically negligible, making it a very solid business model."

Kim further underlined that the group’s Indonesian expansion is meaningful as it seeks mutual growth with a fintech company.

“The entry into the Indonesian market goes beyond simply expanding overseas affiliates. It represents a meaningful step in building a co-growth model with a Korean fintech company that has boldly ventured into the global market,” Kim said.

The acquisitions require approval from Indonesian financial authorities, which is likely to take a year to be completed.

Currently, JB Financial’s overseas operations are limited to Cambodia, Vietnam and Myanmar.

“If JB Financial successfully settles down in Indonesia, we plan to implement the business model in Vietnam, Cambodia and Thailand, respectively. We are very interested in the Southeast Asian market,” Kim said.

At the conference call, JB Financial reported record-high results for both the first half of the year and the second quarter. It posted a net profit of 370 billion won in the first half of 2025, slightly higher than the previous year. In the April-June period alone, it logged 208 billion won in net profit, up 5.5 percent on-year.