2018.10.28 Corporate Announcement
• Partnership aims to integrate digital banking services with LINE users in Indonesia
• With KEB Hana Bank’s large global network, this agreement positions LINE as a digital finance leader
• LINE now recruiting global talent to lead its fintech services in Indonesia
TOKYO – October 28, 2018 – LINE Corporation announced today that its subsidiary LINE Financial Asia will acquire 20 percent of PT Bank KEB Hana Indonesia (PT Bank KEB Hana) through a Share Subscription Agreement, a move designed to expand LINE’s digital banking services in Indonesia. At a signing ceremony held in Seoul on October 26, executives from both companies expressed their commitment to work together to become a leader in the digital finance market in Indonesia and the rest of Asia.
With the agreement, LINE Financial Asia is set to become the second-largest shareholder in PT Bank KEB Hana, adding digital banking to LINE’s broad range of services and contents enjoyed by its user base in Indonesia. LINE is one of the most popular messaging platforms in Indonesia, and PT Bank KEB Hana is a foreign bank that has successfully localized for the Indonesia market.
With a population of 260 million people living on some 18,000 islands, Indonesia lacks banking services that can cover the entire country. However, Indonesia also has more than 100 million smartphone users and a very high rate of social media usage, creating a large potential market for digital banking.
For PT Bank KEB Hana, this deal is expected to produce a range of positive effects, including:
• adding LINE’s large user-base as potential customers,
• expanding the volume of low-interest deposits and improving the bank’s product portfolio by growing its retail banking services, and
• strengthening its digital marketing capabilities through LINE’s brand power, technology, contents and know-how.
For LINE Financial Asia, the deal improves the company’s positioning in Indonesia and globally as it looks to grow as a fintech and digital banking provider. Together, the two companies are also looking to create deposit/microcredit products, and remittance & payment services for Indonesia, as well as implement and improve credit rating models through projects with local and international credit rating agencies, creating an identity verification process (e-KYC) optimized for local regulations, and other measures.
“Through this partnership with PT Bank KEB Hana, we will launch easy-to-use and innovative banking services in Indonesia,” said LINE Financial Asia CEO In Joon Hwang. “This agreement is an important step toward becoming a leader in mobile banking and expanding our fintech services.”
“I believe LINE’s advanced digital technology and KEB Hana Bank’s retail banking experience will prove to be the future of the banking industry, demonstrating a new financial model that begins in Indonesia.” said PT Bank KEB Hana President Director Lee Hwa-Soo.
LINE Financial Asia will officially close the deal with PT Bank KEB Hana after receiving approval from Indonesia’s financial authorities, with the digital banking service expected to launch in 2019.
With LINE expanding its fintech operations in Indonesia, the company is currently on the lookout for global talent to join us, with positions open in such areas as business development, service planning, and management. Details on the available positions and applications can be found on LINE’s Careers page.
About LINE Financial Asia
LINE Financial Asia is a wholly owned subsidiary of LINE Financial, tasked with developing and investing in a range of financial services, with a focus on Southeast Asia. It was established in August 2018 and is based in Hong Kong.
About LINE Corporation
Based in Japan, LINE Corporation (NYSE:LN/TSE:3938) is dedicated to the mission of “Closing the Distance,” bringing together information, services and people. The LINE messaging app launched in June 2011 and since then has grown into a diverse, global ecosystem that includes AI technology, fintech and more.
LINE Global PR: email@example.com