Hyundai Capital Services Inc., the consumer finance unit of the world’s third-largest automaker Hyundai Motor Group, plans to establish subsidiaries in Indonesia and Australia to expand its overseas business.
South Korea’s Hyundai Capital on Wednesday completed the acquisition of an Indonesian financial firm for the business in Southeast Asia’s largest economy while securing a financial business license from the Australian authorities last month, according to the company.
“Hyundai Capital aims to create a new K-wave in the global consumer finance market,” said CEO Mok Jin-won.
The company completed the takeover of PT Paramitra Multifinance to establish PT Hyundai Capital Indonesia in the country, which is set to start operation in April 2025.
The South Korean firm agreed to buy a 75.1% stake in Paramitra last October, although they did not provide other details such as the deal’s value.
FOR HYUNDAI MOTOR GROUP BUSINESSESIndonesia is a key hub for the Hyundai Motor Group's future mobility strategy. Hyundai Motor Co., South Korea’s top automaker, is manufacturing
the IONIQ 5 crossover, its flagship electric vehicle, at
its newly built plant in the Deltamas Industrial complex in Bekasi Regency, about 40 kilometers (25 miles) east of Jakarta.
Hyundai Capital plans to improve its local financing competitiveness and establish sales networks in key Indonesian cities based on its partnership with Sinar Mas Group, the country’s No. 4 conglomerate, and South Korean Shinhan Bank’s subsidiary there.
Sinar Mas Group’s financial arm PT Sinar Mas Multiartha Tbk and the PT Bank Shinhan Indonesia agreed to hold a 15% stake and a 9.9% in Paramitra when Hyundai Capital signed the acquisition deal.
In Australia, Hyundai Capital is set to begin partial operations of its wholly owned unit in July with a plan to expand its business across the country from November.
The subsidiary Hyundai Capital Australia plans to provide local customers of Hyundai Motor Co. and its affiliate Kia Corp. with financial products and services tailored for their vehicle purchases.
Write to Mi-Hyun Jo at
mwise@hankyung.com
Jongwoo Cheon edited this article.
