KB Kookmin Bank Acquires 100% Stake in Cambodia's Prasac Microfinance

Early Acquisition of Remaining Shares
Aiming to Become Cambodia's Leading Bank and a Strategic Hub in the Southeast Asian Market

[Asia Economy Reporter Park Sun-mi]KB Kookmin Bank announced on the 20th that it has completed the acquisition of the remaining shares of Prasac Microfinance in Cambodia, now holding 100% ownership.

After acquiring a 70% stake in Prasac in April last year and becoming the largest shareholder, KB Kookmin Bank has actively supported Prasac's overseas fundraising and risk management expertise. As a result, Prasac achieved a net profit of $109 million last year, a 5% increase compared to the previous year. Additionally, it secured the top position in the microfinance (MFI) loan market with a 44.6% market share and ranked 4th among all financial institutions.

Based on this experience of overcoming crises, the decision to acquire the remaining shares, initially scheduled for 2022, was brought forward. KB Kookmin Bank expects Prasac to play a pivotal role in leading global business growth as Cambodia's economy recovers, supported by a high vaccination rate. According to the Asian Development Bank (ADB), Cambodia's economic growth rate is projected to be 1.9% in 2021 due to the impact of COVID-19 but is expected to grow by 5.5% in 2022.

A KB Kookmin Bank official stated, “We plan to expand our business scope through Prasac's transition to a commercial bank and integrate KB's core competencies with Prasac's unique strengths.” He added, “Prasac will serve as a strategic key hub in KB's Southeast Asia business expansion, going beyond being Cambodia's leading bank.”