South Korea’s KakaoBank to buy 10% stake in Superbank backed by Singtel, Grab

SINGAPORE - South Korea’s KakaoBank is joining Grab, Singtel and Emtek Group to invest in Indonesia’s Superbank by acquiring a 10 per cent stake in the upcoming digital bank through the issuance of new shares.

The move comes ahead of Superbank’s planned launch of its app to the public in 2023.

Superbank was previously known as Bank Fama International, which was majority owned by Indonesia-listed media and technology conglomerate Elang Mahkota Teknologi, or Emtek Group.

Grab and Singtel own a combined 32.5 per cent interest in Superbank after acquiring around 2.4 billion new shares in then Bank Fama for about US$70 million (S$95.5 million) in January 2022.

In a joint statement on Tuesday, KakaoBank and Superbank highlighted Superbank’s strength in its ecosystem of prominent entities such as Grab, Singtel and Emtek Group, known for their market penetration across diverse sectors.

With KakaoBank as the latest addition to Superbank’s investors, the South Korean mobile bank plans to actively collaborate in developing the upcoming digital bank’s products and services.

Its investment in and collaboration with Superbank also mark the first step of its global business, said KakaoBank chief executive Yun Ho-young.

“KakaoBank’s innovative mindset and expertise as a trailblazer in digital banking will boost Superbank’s proposition for consumers and businesses, and we look forward to the customised and unique banking experiences that Superbank will bring to market later this year,” said Ms Ang Hwee Huang, a vice-president at Singtel.

She is also a director at Singtel Alpha, a shareholder of Superbank.

KakaoBank’s investment is an affirmation of Superbank’s potential and “the enormous growth opportunity for financial services in Indonesia”, she said.

Shares of Singtel closed three cents higher at $2.41 on Tuesday.

THE BUSINESS TIMES