KB Investment, a venture capital subsidiary of KB Financial Group, is promoting the establishment of a US$30 million joint fund with MDI Ventures, the No. 1 venture capital (VC) company in Indonesia, to invest in promising Southeast Asian startups.
KB Investment is planning to establish the fund within this year with full-scale investment scheduled to begin in the first quarter of next year.
MDI Ventures is an investment arm of Telcom Indonesia Group, Indonesia's largest telecommunications and digital business group. The group is known for pursuing innovative growth by collaborating with various tech companies. MDI Ventures is a large investment company operating a venture investment fund worth US$140 million. It invests in 10 countries around the world. The company is investing in startups in various fields that will change the market in the future including consumer technology, fintech and big data.
The establishment of the fund is meaningful in that KB Financial Group, the largest financial group in Korea, and Telcom Indonesia Group, the largest telecommunications group in Indonesia successfully took the first step toward a partnership and win-win growth.
KB Financial Group is also accelerating its entry into Indonesia. Kookmin Bank acquired a 22 percent stake in Bukopin Bank, an Indonesian bank, last year, becoming its second largest shareholder. Kookmin Card also decided to take over a 80 percent stake in Financia Multi Finance (FMF) last month.
"This investment will lay the foundation for synergies between KB Financial Group's subsidiaries that are planning to enter Southeast Asia and promising startups in Indonesia," a financial industry official said.