이 기사는 2022년 03월 23일 08:15 thebell 에 표출된 기사입니다.

KB Kookmin Card has recently agreed to provide a 205 billion won ($168 million) loan guarantee for its Thai unit, KB J Capital, as the South Korean card company continues efforts to expand into one of the fastest growing countries in Southeast Asia.

The loan guarantee is up by 50 billion won, or about 32%, from the previous 155 billion won. It will mature on December 31, 2027, with a 0.40% guarantee fee.

KB J Capital, formerly J Fintech, will use funds raised by using its parent company’s loan guarantee to expand its operations and market share in Thailand, where many South Korean financial services firms have long sought to venture for higher profits.

South Korean financial groups have had difficulties in getting a business license from Thailand’s financial authorities since many of them exited the country in the aftermath of the 1997 Asian financial crisis.

Thailand has a larger gross domestic product than other Southeast Asian countries such as Vietnam and Cambodia where South Korean financial services firms have expanded their footprint in the past years for new growth opportunities.

In February 2021, KB Kookmin Card acquired a 49.99% stake – which represents 50.99% voting power – in J Fintech from Thailand’s JayMart Group. The deal marked the first entry by a South Korean financial services firm into the Thai consumer financial market since the Asian financial crisis.

KB J Capital was awarded A-, one the highest credit ratings, from Thai credit rating agency Tris Rating last month. This will enable the firm to raise money through bond issues, helping diversify its funding sources.

Meanwhile, KB Kookmin Card reduced its loan guarantee for its Cambodia unit from 215 billion won to 198.5 billion won and for its Indonesia unit from 368.9 billion won to 367.4 billion won, although its overall investment exposure to the two countries remains unchanged.

“We made some adjustment to our overseas business portfolio, leading to a 30 billion won increase in the total loan guarantee for our subsidiaries abroad,” an official at KB Kookmin Card said. “We will continue to pursue diversification efforts in overseas markets to enhance profits.”

The contribution of KB Kookmin Card’s overseas operations to profitability is still small. In 2021, KB J Capital recorded 1.4 billion won in net profit while the card company’s Cambodia and Indonesia units generated net profits of 8.4 billion won and 6.1 billion won respectively. (Reporting by Gi-wook Lee)