South Korea's Hyundai Construction Equipment Co. Ltd. has joined hands with Hyundai Commercial, a company specializing in industrial and corporate financing, to support installment financing needed for the purchase of construction equipment.
Hyundai CE said on Thursday that it had signed an installment financing partnership agreement at the Hyundai Commercial building in Seoul's Yoido on the previous day, attended by key officials of both companies, including Hyundai CE Sales Head Moon Jae-young and Hyundai Commercial CEO Jang Byeong-shik.
Under the terms of this agreement, Hyundai Commercial will offer low-interest financial products exclusively for Hyundai CE customers.
Hyundai CE will in turn introduce services provided by Hyundai Commercial to its customers and promote joint marketing campaigns.
With the collaboration, the two companies plan to lower the barrier for potential customers to purchase construction equipment by lowering the interest rate below that offered by non-banking lenders.
For months, it has been difficult for buyers to purchase new equipment, with the new vehicle installment rates reaching up to 12% due to the recent hike in the benchmark rate and the deteriorating bond market situation.
"With this agreement, we will be able to provide financial products custom-tailored to our customers, such as launching low-interest products through Hyundai Commercial and easing the lending requirements," said an official of Hyundai CE.
Write to Seo-Woo Jang at
suwu@hankyung.com
