Jung Tae-young's Overseas Drive... Hyundai Capital Signs Share Acquisition Agreement with German Company

HCBE, German Leasing Company 'Sixt Leasing' Share Acquisition Agreement

[Asia Economy Reporter Ki Ha-young] The overseas expansion strategy of Chung Tae-young, Vice Chairman and CEO of Hyundai Card and Hyundai Capital, who has attracted industry attention with his bold strategies, is gradually bearing fruit. It is evaluated that abandoning standardized frameworks and practices and driving overseas initiatives in his own unique way is paying off.

According to Hyundai Capital on the 24th, Hyundai Capital's German financial subsidiary, Hyundai Capital Bank Europe (HCBE), has signed a share acquisition agreement for the German rental car company 'Sixt' and its leasing subsidiary 'Sixt Leasing.' Through the strategic share purchase agreement, HCBE will secure 41.9% (8,644,638 shares) of the shares held by Sixt, becoming the largest shareholder of Sixt Leasing. The acquisition price is 18 euros per share.

Once this acquisition is completed, HCBE will secure Sixt Leasing's online customer-facing lease sales channels and used car utilization platforms. By leveraging Sixt Leasing's know-how in vehicle management services such as maintenance, insurance, and penalty handling, the company explains that it will establish a foundation to respond to future changes in the mobility market.

Under Vice Chairman Chung's directive to find new growth engines overseas, Hyundai Capital is rapidly expanding its territory worldwide. Starting in the United States in 1989, Hyundai Capital currently operates 11 overseas subsidiaries in 9 countries including China, the UK, and Germany. It has entered these markets in the form of financial subsidiaries and advisory firms that mediate financial products. In April last year, it officially launched its sixth overseas financial subsidiary, 'Banco Hyundai Capital Brazil (BHCB).' BHCB serves as Hyundai Motor's exclusive financial company in Brazil, providing automotive financial products and services locally.

The overseas proportion has also increased. Hyundai Capital employs about 2,500 people overseas, accounting for nearly half of its total workforce of approximately 5,300, including Korea. The asset size of overseas financial subsidiaries was about 43 trillion won as of the end of 2018. Hyundai Capital is seeking to expand further into Western Europe, including Spain, France, and Italy, beyond the European countries it currently operates in.

The success Hyundai Capital has achieved in overseas markets is attributed to thorough localization, global partnerships that support it, and a corporate culture called 'Global One Company.' In particular, Hyundai Capital judged that as its global business expands and the number of global employees increases, it is important to create a shared corporate culture that can move toward common goals as a 'Global One Company' alongside localization. Accordingly, since 2016, it has introduced and operated a uniform rank system called 'Global Band' applicable to all subsidiaries worldwide.