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KB Kookmin Bank. (Photo courtesy of KB Kookmin Bank) |
[Alpha Biz= Kim Jisun] The Indonesian subsidiary of KB Kookmin Bank has decided to close several branches in Indonesia, drawing market attention. The bank said the move targets mainly small-format branches and forms part of a broader distribution-channel innovation strategy focused on digital services and higher value-added activities.
According to a regulatory filing released on Tuesday by KB Kookmin Bank’s Indonesian unit, the Tambusai branch was closed on February 11. The Surabaya Renmark branch is scheduled to cease operations on March 30, followed by the ABDA and Indramayu branches on April 6.
In an interview with local media, Kunardy Lee, CEO of KB Bank Indonesia, said the branch network adjustment is “part of KB Bank’s distribution innovation strategy, implemented in a measurable and sustainable manner.”
He added that the bank is repositioning branch functions toward higher value-added activities such as advisory services, lending, and business development, in response to the growing share of transactions conducted through digital channels.
Lee also said the Indonesian unit is evaluating its branch network based on a comprehensive review of market conditions, regional growth potential, branch productivity, and changes in customer behavior. In some areas, nearby branches will be consolidated to improve operational efficiency while maintaining customer access to banking services.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
