Feb 13, Vientiane Capital – As a part of its regional expansion strategy, the KB Financial Group, a South Korean financial holding company, has brought its tremendous international resources and know-how to invest in the Lao leasing market. After a year of preparation, its local incarnation KB Kolao Leasing has finally obtained official approval from local authorities to operate in Laos. KB Kolao Leasing is a business venture between the following entities: KB Financial Group (KB Capital and KB Kookmin Card, the largest credit card company in South Korea) and Laos-based Kolao Group.
KB Capital holds a 51 percent equity (3,060,000 shares) in the new enterprise, with KB Kookmin Card taking 29 percent and Kolao Group holding 20 percent.
KB Kolao Leasing celebrated the launch of its operations in Laos with a fantastic grand opening at the newly opened Landmark Riverside Hotel. Honored by the presences of Deputy Prime Minister Sonexay Siphandone, Deputy Governor of the Central Bank Sonexay Sitphaxay, South Korean Ambassador to Laos Yun Kang Hyeon, Chairman of Kolao Group Oh Sei Young, KB Financial Group Chairman Yoon Jong Kyoo, other distinguished guests and members of the press.
The Kolao Group is a Laos-based corporation that has interests in a diverse range of businesses including construction, banking, leisure, logistics, media, furniture, agriculture, car manufacturing and assembly, and second hand vehicles distribution. With its ever popular Hyundai, Kia and Daehan cars in high public demand, Kolao owns 50% of the Lao domestic car market.
KB Kolao Leasing shall offer financial services for clients via the Indochina Bank network and will be expanding in Laos through collaboration among partners of the KB Financial Group while taking advantage of the solid networks of the Kolao Group.
KB Financial Group Chairman Yoon Jong Kyoo stated in his opening speech that “KB Kolao Leasing is a cooperation between the KB Financial Group and Kolao Group, with the latter holding the title of the company with the highest number of car sales in Laos. I hope that at the outset, KB Kolao Leasing will capitalize on its vast network and resources readily provided by its two parent companies and add value to the growing economy of Laos. I wish the new company much success.”
KB Kolao Leasing has immediate plans to offer financing for new vehicles sold by the Kolao Group. Once its operations gain steam, the former plans to move into the second-hand vehicles financing market.
There are currently 166 financial institutions licensed by the central bank of Laos, of which 29 are leasing companies.
Event managed by Sengdara Communications