South Korea's KB Kookmin Bank is finalizing its acquisition of Indonesia's PT Bank Bukopin Tbk, The Jakarta Post reported June 15, citing a statement from Indonesia's Financial Services Authority, or OJK.

The South Korean lender is completing the legal and administrative part of the acquisition after obtaining principal approval from the OJK to become Bank Bukopin's majority shareholder, the regulator said. It added that KB Kookmin Bank deposited US$200 million into an escrow account on June 11 as part of its commitment to acquiring the stake.

Adhi Brahmantya, operations and IT director at Bank Bukopin, said in written statement published June 11 that KB Kookmin Bank’s acquisition process was ongoing as it was still coordinating with regulators in Indonesia and South Korea.

The next step in the deal process is for Bank Bukopin to hold a shareholders meeting to officiate KB Kookmin Bank as its majority shareholder, OJK's statement said.

KB Kookmin Bank currently holds a 22% stake in Bank Bukopin, while PT Bosowa Corporindo holds a majority stake in the lender with a 23.39% stake.

The OJK's support of the acquisition stems from Bank Bukopin's capital issues over the years, with its third-party deposits declining by 15.67 trillion Indonesian rupiah since December 2019, the publication reported, citing OJK data.

KB Kookmin Bank is a unit of KB Financial Group Inc.

As of June 15, US$1 was equivalent to 14,268.00 Indonesian rupiah.