South Korean Shinhan Bank is acquiring a 40% stake in Bank Metro Express, a private Indonesian bank, for 700 billion rupiah ($53.84 million). The acquisition will be completed once it secures a permit from Indonesia’s Financial Services Authority. The move follows an agreement reached by authorities from both countries – the FSA and South Korea’s Financial Supervisory Services. In line with the reciprocal nature of the agreement, South Korea’s FSS has also granted a permit to Indonesia’s state-owned Bank Negara Indonesia to open a branch in the country. Foreign banks are required to have around $30 million in capital to open a branch in South Korea. BNI is preparing to invest $100 million to open its branch in South Korea this year.
