Hyundai Card to en­ter Viet­namese mar­ket

The Korea Times - - FINANCE - By Park Jae-hyuk [email protected]­re­

Hyundai Card will make in­roads into the Viet­namese mar­ket, join­ing Korean card is­suers that have sought new in­come sources in South­east Asia, the com­pany said Tues­day.

This is the first time that Hyundai Card has made a di­rect en­try into a for­eign mar­ket.

On Mon­day, the credit card unit of Hyundai Mo­tor Group signed a con­tract with Fi­nance Com­pany Limited for Com­mu­nity (FCCOM) to buy a 50 per­cent stake in the Viet­namese con­sumer fi­nance firm for 49 bil­lion won ($41.9 mil­lion).

FCCOM, a sub­sidiary of Viet­nam Mar­itime Com­mer­cial Joint Stock Bank (MSB), mainly deals with per­sonal loans.

After Hyundai Card’s ac­qui­si­tion of the stake in FCCOM, the card firm and MSB will op­er­ate FCCOM as a joint ven­ture.

Hyundai Card will fo­cus on shar­ing its know-how of fi­nan­cial prod­ucts, mar­ket­ing, risk man­age­ment and digital fi­nance, while MSB, which is fa­mil­iar with the lo­cal mar­ket, will be in charge of sales and ev­ery­day op­er­a­tions.

Ac­cord­ing to Hyundai Card, the new joint ven­ture will be­gin its op­er­a­tion start­ing from the sec­ond half of 2020, as it is ex­pected to get ap­proval from fi­nan­cial au­thor­i­ties in Korea and Viet­nam within the first quar­ter of 2020.

Hyundai Card plans to deal with credit cards, auto loan and cor­po­rate fi­nanc­ing in Viet­nam.

The com­pany has paid spe­cial at­ten­tion to the growth of Viet­nam’s fi­nan­cial mar­ket and the pop­u­lar­ity of Hyundai and Kia au­to­mo­biles there.

The per­sonal loan mar­ket in Viet­nam has shown a 60 per­cent an­nual growth rate on av­er­age, and the num­ber of credit card users reached 7.4 mil­lion in 2018, up 27 per­cent from a year ear­lier.

Also, Hyundai and Kia cars took the top spot in the Viet­namese car mar­ket in terms of mar­ket share in 2018, ac­count­ing for 32 per­cent of the mar­ket.

Their sales dou­bled from three years ago.

Hyundai Card said it will max­i­mize the syn­ergy ef­fect in the Viet­namese mar­ket through joint mar­ket­ing with Hyundai Mo­tor and Kia Mo­tors.

“Given that our en­try into Viet­nam is our first ex­pan­sion into the over­seas mar­ket, it has a sig­nif­i­cant mean­ing for us,” a Hyundai Card of­fi­cial said. “Based on the Viet­namese mar­ket, we will ex­pand our pres­ence in the South­east Asian mar­ket.”

Over the past few years, Korean card firms have made ef­forts for over­seas ex­pan­sion to boost their prof­itabil­ity through mar­ket di­ver­si­fi­ca­tion.

In July, Shin­han Card started a busi­ness in Viet­nam, after ac­quir­ing Pru­den­tial Viet­nam Fi­nance in Jan­uary 2018 and launch­ing Shin­han Viet­nam Fi­nance.

KB Kook­min Card es­tab­lished its first for­eign sub­sidiary in Cam­bo­dia in Septem­ber 2018.

Lotte Card launched its Viet­namese sub­sidiary Lotte Fi­nance in June and Woori Card has a lo­cal sub­sidiary named TUTU Fi­nance in Myan­mar.

Hyundai Card Vice Chair­man and CEO Chung Tae-young

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