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Woori Card CEO Kim Jeong-ki Woori Card Co. is set to start the installment finance business in Indonesia, Southeast Asia’s largest economy as the credit card unit of South Korea’s Woori Financial Group is seeking new growth engines in overseas markets.Woori Card on Sunday announced that it has secured approval for the acquisition of PT Batavia Prosperindo Finance Tbk, an installment finance service company in Indonesia, from a local authority. Woori Card is scheduled to officially launch an entity in the country after changing its brand in the second half. In March, Woori Card signed a deal to buy an 85% stake in Batavia for 117.5 billion won ($91.5 million).“We plan to keep expanding the global network, focusing on overseas markets with expected growth potential,” said a Woori Card official.NEW GROWTH ENGINESIndonesia is the company’s second overseas market after Myanmar, which it entered in 2016. Woori Card has been seeking overseas businesses and diversifying portfolios as the South Korean market was already saturated.Batavia, specialized in heavy equipment lease and installment finance businesses, has a total asset of $92 million and about 1,100 employees, operating 72 branches across Indonesia. The firm’s net profit jumped 33% to $880,000 in the first quarter from a year earlier.The company, established in 1994, reported an average of $4 million in net profit in the recent five years.“We aim for the market there with various strategies such as launching new products with competitive interest rates based on our know-how on the installment finance in South Korea,” said the Woori Card official. “We will also work on measures to create synergy with the group’s other companies in Indonesia such as Bank Woori Saudara.”By Nan-Sae Binbinthere@hankyung.comJongwoo Cheon edited this article.
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