South Korea’s state-run Industrial Bank of Korea (IBK) announced Monday that it has been cleared by the Financial Services Authority of Indonesia (OJK) to take over Indonesia’s publicly listed Bank Mitraniaga and Agris.
The state lender has initiated a work to merge the two Jakarta-based banks with an aim to launch IBK Indonesia within the first half of next year. Bank Agris running 23 sales networks in Indonesia has a license to conduct currency exchange business, so it can support export and import business of Korean small- and mid-sized firms doing business in Indonesia. Bank Mitraniaga has 13 marketing networks.
It would be the state bank’s first merger and acquisition of foreign banks. IBK CEO Kim Do-jin who has been emphasizing global business as its one of major growth engines has made efforts in setting up IBK Asia Finance Belt since he took office.
“The two banks are expected to create a synergy effect in attracting more customers by sharing their sales networks,” said an official from IBK. “We will strengthen our businesses in countries where many Korean companies have operation.”