KB Kookmin Bank buys 8.3 percent of Tmap for $149 million

KB Kookmin Bank purchased 8.3 percent of Tmap for 200 billion won ($149 million), becoming the fourth-largest shareholder of the navigation service provider.

Lee Jong-ho, left, Tmap Mobility CEO, and Lee Jae-keun, KB Kookmin Bank CEO, pose for a photo during a signing ceremony held in Jongno District, central Seoul, Friday. [KB KOOKMIN BANK]

KB Kookmin Bank purchased 8.3 percent of Tmap for 200 billion won ($149 million), becoming the fourth-largest shareholder of the navigation service provider.

SK Square owns 60.1 percent of the company.

Tmap said this is the first time in which a major financial institution has invested in a mobility company at such a scale.

The funds will be used for business expansion and hiring.

KB Kookmin Bank and Tmap aim to seek new business opportunities together by combining financial services, such as insurance and payments, with transportation services. Another goal is to introduce loan products.

The companies are considering cooperation in future growth sectors, such as autonomous driving, carbon mileage-related services and urban air mobility.

KB Kookmin Bank and Tmap formed a strategic partnership in December last year with a focus on the environment, social and governance businesses.

"We expect the collaboration with KB Kookmin Bank will help us become a mobility platform that everyone can easily use," said Lee Jong-ho, Tmap Mobility CEO.

"We consider this cooperation with Tmap Mobility, a mobility industry leader, to be very significant," said Lee Jae-keun, KB Kookmin Bank CEO.

In 2020, Tmap Mobility said that it will go public by 2025 and reach annual sales of 600 billion won. The company reported quarterly sales of 45.1 billion won for the April-June period, up 301 percent on year.

SK Square's other subsidiaries — SK shieldus and One store — recently scrapped their plans for initial public offerings this year due to the unfavorable market situation.

BY SHIN HA-NEE [shin.hanee@joongang.co.kr]