KB PRASAC Bank Plc – the new commercial bank formed through a strategic merger between Kookmin Bank Cambodia and PRASAC Microfinance Institution – was officially launched in Phnom Penh on February 23, 2024.
And in a testament to the bank's pledge of being a trusted lifetime financial partner for all customers, the official inauguration was graced by the presence of Lok Chumteav Dr Chea Serey, Governor of the National Bank of Cambodia (NBC).
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In her speech, Lok Chumteav Dr Chea Serey offered congratulations on the successful merger of the financial institutions into a large, new commercial bank by highlighting the importance of the development to strengthening the institution's stability and resilience by increasing assets and deposits.
The merger would enable greater access to more convenient and diverse financial sources, reduce expenses, expand the market and diversify products and services for customers, particularly SMEs, she added, thus further improving financial inclusion in Cambodia.
Lok Chumteav Dr Chea Serey said she would encourage KB PRASAC Bank Plc to continue to contribute to the support and development of communities, as well as promoting financial inclusion, and in particular, the innovation of financial services for SMEs.
The new financial institution should also continue to focus on customer protection and transparency in the provision of financial services, as well as the promotion of financial literacy in society; provide loans at affordable rates; and promote access to women's financing and green loans in line with customer needs.
In his address, Yang Jong Hee, Chairman and CEO of KB Financial Group Inc, emphasised the importance of the relationship between South Korea and Cambodia, one strengthened with the foundation of an "Economic Partnership" with the implementation of a Free Trade Agreement (FTA) in 2022.
He also hailed the increase in investment, the creation of job opportunities for the Kingdom's young people and human resource development through the acceptance of Cambodian students to work and study in Korea.
“In line with the group’s market expansion strategy and seeing the potential of the Kingdom’s rapid economic growth, KB Financial Group penetrated the Cambodian market by establishing Kookmin Bank Cambodia in 2009.
"KB Daehan Specialized Bank Plc [KDSB] was established in 2018, while we welcomed PRASAC Microfinance Institution into the KB Financial Group family in 2021.
“Following in these steps, Kookmin Bank Cambodia and PRASAC Microfinance Institution merged in August 2023 to form a commercial bank named KB PRASAC Bank Plc, leading to today's official grand opening,” said Yang Jong Hee.
KB Financial Group is a leading financial group in Korea, while KB Kookmin Bank is a large Korean commercial bank and a parent company of KB PRASAC Bank.
Together they will bring banking experience, state-of the art of information technology, digital solutions and financial support to Cambodia with the merged bank, with KB PRASAC Bank not only providing banking services, but also assisting in the decision-making of customers with financial consultations.
Yang Jong Hee added: “Our customers will always be first, and KB PRASAC Bank will offer the best financial products tailored to suit their diverse lifestyles as it aspires to become their trusted lifetime financial partner.”
Oum Sam Oeun, President and CEO of KB PRASAC Bank, expressed enthusiasm for the journey ahead.
“We are so excited to have united under the banner of KB PRASAC Bank Plc, which has empowered us even more to be able to fulfill our important mission of enhancing financial inclusion and driving economic growth in Cambodia.
"We now have greater ability to provide innovative, cutting-edge and unparalleled services to meet the evolving needs of customers through a combination of expertise, information technology and digital capabilities in answering to demands of all types of customers – whether an individual, a company or an SME.
“KB PRASAC Bank is committed and stands ready in the implementation of our core strategy on customer-centric focus and ensuring that every decision we make is guided by the best interests of our customers," said Oum Sam Oeun.
He also highlighted the new bank's goal of being the bank for every member of Cambodian society.
"KB PRASAC Bank aims to be the bank for all segments of society, from micro-businesses in rural areas to international enterprises, and we pledge to provide comprehensive financial services that cater to everyone.
"I would like to express my sincere gratitude to the NBC and the Cambodian Ministry of Commerce, as well as the regulators and local authorities, for their astute advice.
"And I would especially like to thank all the valued customers who have given their support and chosen KB PRASAC Bank as their lifetime financial partner," said Oum Sam Oeun.
About KB PRASAC Bank
KB PRASAC Bank Plc, has a commercial licence from the NBC and received official approval from the Cambodian Ministry of Commerce to conduct banking operations in August 2023.
An affiliate of KB Kookmin Bank – Korea, perfect synergy leverages the strength of PRASAC's nearly 30 years of experience in the microfinance sector and the world-class financial innovations of Kookmin Bank in banking.
This will allow the merged bank to deliver more comprehensive and innovative banking services and products to customers in Cambodia's banking market.
The bank has consolidated total assets of US$5.7 billion, a deposit balance of $3.1 billion, a total loan portfolio of $5 billion, 192 branch offices and more than 10,000 staff.
It is dedicated to promoting financial inclusion, driving economic growth and providing innovative banking solutions to its diverse clientele.
