The International Finance Corporation (IFC) on Monday announced a $150-million financing package initiative with KB Kookmin Card Co. (KBC), a major South Korean credit card issuer, to expand financial support for small and medium enterprises (SMEs) in Indonesia and enhance digital inclusion in Thailand.
IFC said the funds will be split between two of KBC’s subsidiaries in these countries.
In Indonesia, IFC will lend approximately $100 million in the local currency to PT KB Finansia Multi Finance (KB FMF), a multi-finance company with a majority stake held by KBC. This funding will primarily aid micro, small, and medium enterprises with supply chain finance loans.
Meanwhile, in Thailand, the IFC is extending about $50 million in the local currency to KB J Capital Co. Ltd (KBJ), a non-bank finance company also majority-owned by KBC. This loan will support installment financing for mobile phones, particularly targeting less developed areas of the country. KBJ has been the exclusive financier for Samsung mobile devices in Thailand since 2022.
KB Kookmin Card managing director Moon Cheol Kang highlighted that the investment would enable both KB FMF and KBJ to serve underserved markets more effectively in their respective countries, facilitating growth in regions where access to finance is most lacking.
“As a multi-finance company, KB FMF is well positioned to develop their supply chain finance programs, especially for smaller businesses, where financing gaps are the widest. In Thailand, IFC’s funding will send a positive signal, attracting funding and allowing KBJ to expand financing for mobile phones in the country’s underdeveloped regions,” he said.
This investment builds on a continuing partnership between IFC and KBC to support MSMEs. Notably, in December 2020, during the COVID-19 pandemic, IFC provided funds to KB FMF to sustain its lending activities to MSMEs.
In fiscal year 2023, IFC committed a record $43.7 billion to private companies and financial institutions in developing countries.