KB Kookmin Bank, one of Korea’s top five commercial lenders here, launched its new Cambodian unit, KB Prasac Bank, to tap deeper into the market by offering loan programs for small merchants and digital banking services.

KB Prasac Bank, Cambodia's fourth-largest commercial lender in terms of assets, held an opening ceremony in Phnom Penh on Friday (local time), according to the Korean firm.

More than 700 individuals attended the event, including KB Financial Group Chairman Yang Jong-hee, KB Kookmin Bank CEO Lee Jae-keun and the executives in charge of operating the global business of the firm and the lender, along with National Bank of Cambodia Governor Chea Serey and the Cambodian Ambassador to Korea Chring Botumrangsay.

“We will provide the best experience for customers with the recipe for balanced, mutual growth and co-existence,” Yang said at the ceremony. “We will become Cambodia’s ‘lifetime financial partner,’ prioritizing customers and providing the optimum financial service that tunes to their life cycles.”

The unit was established through a merger between KB's two affiliates -- Prasac Microfinance Institution and Kookmin Bank Cambodia -- which was approved by the local authorities in August.

Over the years, KB Kookmin Bank has been working to secure its footing in Cambodia. It launched its affiliate, KB Cambodia Bank, in the country in 2009. In 2021, it completed the acquisition of Prassac Microfinance Institution, a microfinance deposit-taking institution that focuses on small-scale lending.

“As the No. 4 commercial bank in Cambodia, KB Prasac Bank is to expand its business footing with some 190 sales networks and over 5,000 sales individuals,” an official from KB Kookmin Bank said.

“We will lead the financial market in Cambodia by narrowing down the gap with the leading bank through securing low-cost funding and expanding the market share for QR-code-based payments, strengthening the digital competence in the mid-to-long term.”