KB Kookmin Bank announced on March 8 that the bank acquired the final approval of the establishment of KB Micro Finance Myanmar (KB Myanmar) from local financial authorities and will start the operation of the first branch in Yangon in Myanmar beginning on March 15.
KB Myanmar is the first micro finance company to collaborate with the Myanmar government and NGOs to provide housing improvement and new construction funds to the low-income class with poor residential environments in Myanmar.
Earlier, Yoon Jong-kyu, president of KB Kookmin Bank, signed a memorandum of understanding (MOU) with the Construction and Housing Development Ministry of Myanmar and the Construction and Housing Development Bank in February this year when he visited the Southeastern country. During the signing ceremony, Yoon said that KB Kookmin Bank would actively cooperate for expanding the supply of housing for people, a major task of the Construction and Housing Development Ministry of Myanmar.
KB Kookmin Bank will expand its sales network to the administrative capital Naypyidaw and the second largest economic center Mandalay, starting with the first branch in Yangon, and will establish itself as a leading foreign institution in the Myanmar microfinance market through the establishment of a nationwide sales network in the future.
"The low-income bracket accounts for about 90 percent of Myanmar’s population. There is strong demand for petty loans for low-income people," a KB Kookmin Bank official said. “KB Myanmar is expected to grow rapidly based on Kookmin Bank's financing and housing finance know-how."