The state-run Korea Development Bank said on Wednesday that it has recently completed the process to acquire the Indonesian company Tifa Finance.

The latest takeover, which is in line with the government’s drive to beef up economic and geopolitical relations with countries in Southeast Asia, is aimed at expanding operations in the local market.

In December, the Korean bank signed a contract to acquire an 80.65 percent stake in the Indonesian financial company from DSU Group, a manufacturing and financial services firm. Although the bank faced difficulty in carrying out field inspections and in-person negotiations due to the coronavirus pandemic, it has continued engaging in the acquisition deal for the past few months.

With the new acquisition of the local financial firm, the Seoul-headquartered bank plans to offer corporate financial and development finance services in Indonesia, whose economy has been gaining steam with its gross domestic product growing at a rate of some 5 percent annually for the past years.

Founded in 1989, Tifa Finance is specialized in corporate loans while providing a range of financial services such as lease financing and installment financing.

In a bid to serve customers in the largest Muslim country in the world, the local financial firm also offers Sharia-compliant finance, banking and financing activity that abides by the Islamic law.

“While utilizing its competitive edge in venture capital for the Indonesian market, KDB will try to advance the existing services of Tifa Finance, such as corporate financing and infrastructure financing, and to build a platform that helps the bank to offer financial services to global corporate partners,” a KDB official said.

The Korean bank has been expanding global branches despite the ongoing coronavirus crisis this year by launching branches in other nations, including Myanmar. It also plans to operate a venture capital business in Silicon Valley and a new office in Hanoi, Vietnam.

By Kim Young-won (wone0102@heraldcorp.com)