KB Prasac Bank Supports Payment Services At ‘Emart24’ In Cambodia
The first branch of the South Korean retail convenience outlet, ‘Emart24’, held its grand opening in Phnom Penh’s Boeung Keng Kang 1 (BKK1) district on June 21, 2024, with payment services provided by KB Prasac Bank.
Supporting the financial infrastructure of Emart24's operations in Cambodia marks KB Prasac Bank's entry into the local payment market.
Emart24’s opening ceremony was attended by David Sambo, CEO of Saison Group; Park Jin-soon, Chairman of Hanlim Architecture Group; Kang In-seok, Executive Director of Emart24; Om Sam Eun, President of KB Prasac Bank; and Kim Hyun-jong, Vice President of KB Prasac Bank, along with approximately 200 other related personnel.
The Merger That Created KB Prasac Bank
KB Prasac Bank, a subsidiary of South Korea's KB Kookmin Bank, has been strategically expanding in the Cambodian market since 2009. First entering the local market as KB Cambodia Bank, by 2021, the bank fully acquired Prasac Microfinance as its wholly-owned subsidiary.
In July 2023, KB Kookmin Bank obtained approval from the National Bank of Cambodia (NBC) to merge Prasac Microfinance and KB Cambodia Bank, leading to the launch of KB Prasac Bank in August of the same year.
Emart24’s Entry Into Cambodia
The launch of the Emart24 convenience store chain in Cambodia was announced in August 2023. Operated by Shinsegae Group, Emart24 reportedly chose to expand its overseas operations into Cambodia due to the country’s economic potential and annual GDP growth rate. Emart24 already runs 29 stores in Singapore and three in Malaysia.
In February 2024, KB Prasac Bank signed a business agreement with Saihan Partners, a joint venture between Hanlim Architecture Group and Saison Group, to facilitate financial service connections for Emart24's entry into Cambodia. This partnership aimed to leverage KB Prasac Bank's advanced financial services to support Emart24's operations.
The first Emart24 store in Cambodia is located in Phnom Penh’s BKK1 district, a central area that is known for its many restaurants, marts and food options, including many Korean stores.
Saihan Partners plans to open 10 Emart24 stores within the year, and 100 stores within five years.
Kookmin Bank To Expand Payment Services In Cambodia
Om Sam Eun, President of KB Prasac Bank, highlighted the bank's future plans to expand in the Kingdom's payment market.
"Starting with this first Emart24 store, we plan to sequentially apply advanced K-financial services such as QR payment systems, virtual account services, and firm banking to Emart24, thereby expanding our coverage in the Cambodian payment market,” he stated.
Kang Nam-chae, Vice President of KB Kookmin Bank's Global Business Group, emphasised the strategic importance of this initiative.
He emphasised:
Securing low-cost deposits through the expansion of the QR payment market share is a key strategy for becoming the No. 1 commercial bank in Cambodia. Supporting Emart24's payment services will be the first step in internalising KB Financial's advanced digital capabilities and leading the Cambodian payment market.
As of 2023, KB Prasac Bank is among the largest banks in Cambodia, reporting consolidated total assets of USD $5.7 billion, a deposit balance of USD $2.9 billion, a total loan portfolio of USD $5 billion, 192 branch offices, and more than 10,000 staff.
Initially more focused on rural customers, KB Prasac Bank is now adapting its services to urban areas following the merger.