Korea's KB financial group enters the Lao market
Korea's KB financial group enters the Lao market
KB Financial Group from the Republic of Korea is making a full-scale entry into the Lao market centred on auto finance.
The grand opening ceremony of KB Kolao Leasing Co., Ltd. took place recently in Vientiane in the presence of Deputy Prime Minister Mr Sonexay Siphandone, Deputy Governor of the Bank of the Lao PDR Mr Sonexay Sitphaxay, Deputy Minister of Planning and Investment Dr Khamlien Pholsena, Chairman of Kolao Group Mr Oh Sei Young, along with guests and staff.
At the event Chairman of KB Financial Group Mr Yoon Jong Kyoo said the launch of KB Kolao Leasing Co., Ltd. is a joint venture between KB Capital Company, KB Kookmin Card Co., Ltd and Kolao Group.
KB Capital holds a 51 percent stake in the joint venture, with KB Kookmin Card Co., Ltd holding 29 percent and Kolao Group holding 20 percent.
KB Kolao Leasing Co., Ltd. will provide financial services for customer through Indochina bank and is expanding in the country through collaboration among affiliates within KB Financial Group while utilising the strong network of Kolao Group.
KB Kolao leasing hoped the venture would become a successful model for the Group's overseas expansion into Laos, which it believes has high growth potential.
KB Kolao Leasing Company will first provide installment financing for new cars distributed by the Kola Group in the local market, and if the business stabilises it will expand into the used car finance market.
According to the firm, it planned to gradually advance into the Southeast Asian instalment financing market in the near future, such as Indonesia, Vietnam and Cambodia, based on its global management experience and workforce pool secured by non-banking subsidiaries acquired through the KB Kolao leasing project.
The Lao government has issued guidance to promote various aspects of the financial sector, particularly leasing.
At present, there are 166 financial institutions registered with the Bank of the Lao PDR which includes 29 leasing companies.
According to KB Kolao Leasing Co., Ltd its investment in Laos would contribute to boosting Korean business confidence and attract further investors from that country.
Meanwhile, Mr Sonexay wished the company success in their local business operations.
