Will Get Additional Capital, Bukopin Asked KB Financial Group To Transform Into A Digital Banking

Bukopin Building. (Photo: Doc. Antara)

JAKARTA - KB Financial Group through KB Kookmin Bank continues to strengthen PT Bank KB Bukopin Tbk. This time, the financial giant company from South Korea has prepared KB Bukopin to carry out a transformation towards digital banking.

Through a synergy with the affiliated KB Financial Group company network, KB Bukopin is expected to soon have the ability of digital banking services with very high competitiveness.

In addition to banks, types of companies affiliated with KB Financial Group that can synergize with KB Bukopin in providing digital banking services include securities, insurance, credit cards, financial investment, as well as data system companies and credit information.

"By utilizing the network of affiliated companies in a very large KB Financial Group, we hope that KB Bukopin will be able to make a big leap towards the era of digital banking," said Deputy President Director Robby Mondong in his statement, Monday 12 December.

KB Financial Group itself is a major player in the digital-based financial services industry in Korea, which is able to meet the needs of technology-selected consumers by utilizing innovative digital technology. Therefore, through a better technology transfer process and management system, KB Financial Group is expected to make KB Bukopin a bank with reliable and international standard digital service capabilities.

The existence of KB Financial Group through KB Kookmin Bank as the main shareholder can make KB Bukopin have stronger capital, especially after the rights issue which will be implemented in early 2023. KB Financial Group's plan to improve and strengthen KB Bukopin's performance through the addition of capital by KB Kookmin Bank with the rights issue scheme has been approved at the Extraordinary General Meeting of Shareholders (EGMS) at the KB Bukopin Headquarters on November 30, 2022.

As the largest financial business group in Korea with total assets reaching $560.1 billion and supported by a customer base that reaches 70 percent of the Korean population, KB Financial Group has enormous carrying capacity to encourage the development and progress of KB Bukopin. Moreover, KB Financial Group has a very good reputation with the highest credit rating among Korean banks, and is known as the most profitable, solid, and stable financial business entity.

The plan is for the addition of KB Bukopin's capital to be carried out through a Limited Public Offering (PUT VII) with the Pre-emptive Rights (HMETD) scheme or rights issue by issuing a new share of series B of up to 120 billion shares. Through this additional capital, KB Bukopin will receive an injection of fresh funds that are useful for maintaining capital adequacy while supporting sustainable business expansion.

With the addition of the new capital, KB Bukopin will remain consistent in business development, especially in the SME and Retail segments. Accompanied by support from the development of IT digitization, in the medium term, it is hoped that the business growth of Bank KB Bukopin will be more stable and lead to sustainable profitability.