Indonesia's Financial Services Authority granted South Korea-based KB Kookmin Bank approval to be a controlling shareholder of PT Bank Bukopin Tbk, The Jakarta Post reported Aug. 5, citing a statement from the financial regulator.

The move comes after the Indonesian lender concluded a rights issue, wherein KB Kookmin Bank injected 1.46 trillion Indonesian rupiah into Bank Bukopin to bolster its capital and support its business.

The capital injection hiked KB Kookmin's stake in Bank Bukopin to 33.9% from 22%, making it the latter's controlling shareholder along with PT Bosowa Corporindo, which owns a 23.4% stake in the bank.

The rights issuance also resulted in the Indonesian government's stake in Bank Bukopin falling to 6.37% from 8.92%, while the public's ownership was reduced to 36.33% from 45.69%, the publication reported.

The KB Financial Group Inc. unit reportedly plans to raise its stake in Bank Bukopin to 67%.

As of Aug. 5, US$1 was equivalent to 14,499 Indonesian rupiah.