KakaoBank acquires slice of Indonesian bank to fortify Grab partnership

[KAKAOBANK]

KakaoBank is acquiring 10 percent of a small- and medium-sized bank in Indonesia in a bid to strengthen its partnership with Grab Holding.

The internet-only bank said on Tuesday it is acquiring the stake in PT Super Bank Indonesia, which is 28.1 percent held by Grab and 18.8 percent owned by Singtel, a Singapore-headquartered telecom operator. Emtek, the Indonesian media group, also holds 36.8 percent.

KakaoBank did not disclose the amount of funds invested.

[KAKAOBANK]

PT Super Bank Indonesia shut down its offline business in December 2021 to transform into a digital bank. The digital service is scheduled to be launched either this year or in the first quarter of next year.

KakaoBank will share its experience in the establishment of the Indonesian bank’s digital service, including its expertise in user interface and user experience.

The growing penetration rate of cell phones, the geographical fact of consisting of more than 18,000 islands and the mass population that is unbanked are some of the factors that make the Indonesian market attractive, according to KakaoBank.

The bank CEO Yun Ho-young said in a statement that KakaoBank will discuss ways to establish a network for a global digital bank through the latest investment.

Tigor M.Siahaan, PT Super Bank Indonesia CEO, said the bank expects to raise banking accessibility to financially excluded people through KakaoBank’s investment.

BY JIN MIN-JI [jin.minji@joongang.co.kr]