First Central Asia foothold targets auto-finance expansion
Full acquisition of Korky Credit and Korky Leasing
Kyrgyzstan draws attention with annual GDP growth topping 10%
JB Financial Group is moving into the Central Asian market by acquiring two financial companies in Kyrgyzstan, aiming to diversify its overseas presence beyond Southeast Asia and tap the local market using JB Woori Capital's auto-finance capabilities.
JB Woori Capital, a subsidiary of JB Financial Group, announced Thursday that it has signed an agreement with Epoke — the parent company of Kyrgyzstan-based Korky Credit and Korky Leasing — to acquire 100 percent stakes in both firms.
The group plans to complete the acquisition by year-end, pending approval and registration with local financial regulators. Once the process is finalized, both companies will become wholly owned subsidiaries of JB Woori Capital.
The deal will give JB Financial its fifth overseas base, following earlier expansions into a commercial bank in Cambodia, a microfinance firm in Myanmar, a securities firm in Vietnam and a credit finance company in Indonesia. JB Woori Capital received approval from Indonesian financial regulators for the Indonesia acquisition in August.
JB Financial said it was drawn to Kyrgyzstan's economic growth trajectory and the potential of its financial market. About 70 percent of the country's population is under 30, and real GDP growth has recently exceeded 10 percent annually.
Local operations will center on auto finance, combining JB Woori Capital's domestic track record in the sector with on-the-ground business networks to deliver services tailored to customer demand. In Indonesia, the company plans to launch credit loans targeting motorcycle riders in the second half of next year. Over the medium to long term, JB Financial aims to diversify its revenue base beyond its existing retail-focused model and strengthen its position in local markets.
"This acquisition is a strategic decision to extend our financial network beyond Southeast Asia into Central Asia," a JB Financial Group official said. "We will leverage JB Woori Capital's auto-finance competitiveness and a thorough localization strategy to establish a successful presence in the Kyrgyzstan market and build a foundation for sustainable growth."
forest@heraldcorp.com
