KB Capital Co., the automotive financing and leasing services arm of KB Financial Group, on Thursday signed a deal with Indonesia’s Sun Motor Group to acquire an 85 percent stake in its finance unit Sunindo Parama Finance in a bid to enter the country’s auto financing market.

Financial terms and other details were undisclosed.

Sun Motor Group is one of the biggest automotive dealers in Indonesia that also engages in car rental and hotel business since its inception 1974. It now supplies Mitsubishi, Suzuki, Nissan, Chevrolet, Toyota, and MAN Truck vehicles in the country.

KB Capital is planning to offer auto financing service for Sun Motor Group’s car leasing program. Once the acquisition process finishes, it would add more services for used cars and rental cars to expand its business in Indonesia.

KB Capital advanced into the Indonesian market in 2017. It hopes the latest addition would help it make headways into other burgeoning Southeast Asian countries.

“We’ll go all out to be a leader in the Indonesian financial market in cooperation with Sun Motor Group on top of local banks and insurers,” said Hwang Soo-nam, chief executive of KB Capital.

By Kim Gang-rae and Lee Ha-yeon

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