SEOUL: South Korean lender Shinhan Bank is set to acquire a 40% stake in Bank Metro Express, a private Indonesian bank, for 700 billion rupiah ($53.84 million). Shinhan’s acquisition will be completed once it secures a permit from Indonesia’s Financial Services Authority.
The move follows an agreement reached by authorities from both countries — the FSA and South Korea’s Financial Supervisory Services. FSA Chairman Muliaman Hadad, FSS Gov.
Zhin Woong Seob and Tark Yunsung, a director at South Korea’s Financial Commission, on Thursday signed a memorandum of understanding on setting up a cross-border supervisory facility for the financial sector.
In line with the reciprocal nature of the agreement, Zhin said, South Korea’s FSS has also granted a permit to Indonesia’s state-owned Bank Negara Indonesia to open a branch in the country. Foreign banks are required to have around $30 million in capital to open a branch in South Korea.
Achmad Baiquni, CEO of BNI, said the bank is preparing to invest $100 million to open its branch in South Korea this year.
