LINE Financial Asia acquired 20% of Bank KEB Hana shares

BANK - JAKARTA. LINE Financial Asia, a subsidiary of LINE Financial, said it had obtained permission from the Financial Services Authority (OJK) to acquire a 20% stake in Bank KEB Hana.

In its official statement on Sunday (10/28), LINE Financial Asia will become the second largest shareholder at KEB Hana Bank. This collaboration will provide several positive effects for LINE Financial Asia and KEB Hana Bank.

First, KEB Hana Bank will get potential customers from a high LINE user base. Second, bank deposit funds will increase at low interest through strengthening retail banking.

The third is strengthening digital marketing capabilities through LINE's brand strength, technology, content and skills.

"We believe that LINE's state-of-the-art digital technology and retail banking experience of KEB Hana Bank will be the future of the banking industry, and show a new financial model that starts in Indonesia," said PT Bank KEB Hana CEO Lee Hwa-Soo.

LINE Financial Asia will complete the cooperation agreement with Bank KEB Hana after receiving approval from the Financial Services Authority. The company also immediately prepares to launch digital banking services which are expected to be available in 2019.

Currently, KEB Hana Bank Korea has 89% shares of Bank KEB Hana. International Finance Corporation has 9.9% and Bambang Setijo owns 1% of the shares. (Translator: Barratut Taqiyyah Rafie)