Hyundai Oilbank Advances to 2nd Place in Gas Station Market

[Asia Economy Reporter Park Soyeon] Hyundai Oilbank began operations on the 1st after acquiring the operating rights of over 300 SK Networks gas stations. On the same day, Hyundai Oilbank President Kang Dalho and employees visited one of the acquired gas stations, Ocheon Gas Station in Gangnam-gu, Seoul, to commemorate the start of operations and worked as daily gas station attendants.

Hyundai Oilbank has taken another leap forward 20 years after rising to third place in the industry by acquiring the operating rights of over 1,100 Hanwha Energy Plaza gas stations in 1999. After the acquisition, Hyundai Oilbank now operates about 2,500 gas stations nationwide, second only to SK with about 3,100 stations. GS has 2,352 stations, and S-Oil has 2,162 stations.

Last year, SK Networks' sale of gas stations attracted public attention as a major event that would cause a significant shift in market share. At that time, Hyundai Oilbank participated in the bidding together with Koramco Asset Trust and was selected as the final successful bidder. Koramco Asset Trust acquired SK Networks' assets, and Hyundai Oilbank leases and operates the gas stations.

The market evaluates that Hyundai Oilbank has greatly strengthened sales stability by increasing product supply channels through this acquisition. Compared to the export market, which is highly influenced by the global economy and geopolitical factors, the domestic light oil (gasoline, diesel, kerosene, etc.) market has a relatively solid demand base and smaller fluctuations. Securing a fixed supply channel of 20,000 barrels per day in such a market is significant.

In particular, it is attractive that more than half of the acquired gas stations, 159 stations, are located in the metropolitan area (Seoul, Gyeonggi, Incheon). Hyundai Oilbank's number of gas stations in the metropolitan area, where it was at a disadvantage compared to competitors, has increased by a remarkable 27%, from 591 to 750 stations. Securing a large number of gas stations in the metropolitan area, where the resident and floating population is absolutely large, is expected to contribute not only to sales but also to brand awareness.

Hyundai Oilbank plans to continuously expand the range of services customers can experience at gas stations, using the momentum of rising to second place in the gas station market. Currently, Hyundai Oilbank is conducting various public-private cooperative public interest projects such as women’s safety delivery service and unmanned book return boxes, as well as profit businesses like fast food, convenience stores, and warehouse rentals utilizing gas station spaces.

Among the acquisition targets, directly operated gas stations also participate in the 1% Sharing. Since 2014, Hyundai Oilbank has been donating 1% of the net profit from directly operated gas stations to the Hyundai Heavy Industries Group 1% Sharing Foundation.