South Korea`s KB Kookmin Bank said on Sunday it has launched a local currency remittance service for the Indonesian rupiah, the first banking service for individuals and enterprises after it acquired a stake in Bank Bukopin of Indonesia.

Customers can save exchange fees as they no longer have to change the Korean won into the U.S. dollar and then into the local currency for remittance from Korea to Indonesia.

About 41,000 Indonesians live in Korea and they represent a major customer group in the overseas remittance market.

In late July, KB Kookmin Bank acquired a 22 percent stake in Bank Bukopin of Indonesia, making it the second-largest shareholder of the lender. With the acquisition, the Korean bank re-entered the Indonesian market 10 years after it sold a controlling stake in Bank International Indonesia in 2008. Bank Bukopin is a mid-sized lender specialized in retailing banking services.

KB Kookmin Bank has stepped up its business in South Asia, upgrading its local office status to a banking branch in Vietnam and India.

By Chung Joo-won and Minu Kim

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