Well-Grown Subsidiary... Tmap Mobility's Corporate Value Doubles to 2.2 Trillion Won (Comprehensive)

SK Square Mobility Subsidiary Tmap Mobility
Doubles Corporate Value Since Spin-off in Late 2020
KB Kookmin Bank Invests 200 Billion KRW
Becomes Largest Shareholder as Strategic Investor

Lee Jong-ho, CEO of T map Mobility, is speaking at the first press conference held on the morning of the 22nd at the Suprex Hall on the 4th floor of the SKT Tower in Euljiro, Seoul. Photo by Cha Min-young

[Asia Economy Reporter Minyoung Cha] T map Mobility, a mobility platform subsidiary of SK Square, has been valued at 2.2 trillion KRW by KB Kookmin Bank. This is more than double the valuation at the time of its spin-off in November 2020. SK Square plans to continue growth strategies for T map Mobility and its other subsidiaries.

CEO Jongho Lee: "Result of Combined Efforts of T map Mobility and SK Square"

Jongho Lee, CEO of T map Mobility, stated at the first press conference held on the morning of the 22nd at the Suprex Hall on the 4th floor of SKT Tower in Euljiro, Seoul, "The valuation is more than twice what it was at the time of spin-off, and it is especially meaningful as it represents the first large-scale investment by a domestic financial institution in a domestic mobility platform company."

CEO Lee added, "Welcoming KB Financial as a new partner is not solely the result of T map Mobility's efforts. It is a meaningful achievement that combines SK Square's ICT platform investment know-how and the efforts of its experts."

T map Mobility was spun off as a specialized corporation from SK Telecom's mobility business unit in November 2020 and received an investment of 60 billion KRW from Uber in the U.S. in April last year. In May of the same year, it received investments of 20 billion KRW each from East Bridge and Apelma Capital, and this month it secured an additional 20 billion KRW investment from KB Kookmin Bank. KB Kookmin Bank will hold an 8.3% stake, becoming the fourth largest shareholder after SK Telecom, Apelma Capital, and East Bridge, and the largest strategic investor.

This investment is also a successful example of SK Square's 'bolt-on investment' strategy. Bolt-on investment is a strategy to increase corporate value by acquiring or collaborating with other companies that have strong business relevance. Beyond the simple synergy between mobility (T map Mobility) and finance (KB Kookmin Bank), the potential for future collaboration with SK Square's ICT family also influenced this decision.

Integrated Insurance Product First... Must Pass Financial Supervisory Authority's Approval

Lee Jaehwan, Head of Growth Strategy at T map Mobility, is explaining at a press briefing.

Taking this investment as an opportunity, the two companies plan to launch an integrated insurance product for T map platform workers within the year. Since discussions and approvals from the Financial Supervisory Authority are required, there are many hurdles to overcome. Having previously introduced UBI (Usage-Based Insurance) that determines premiums based on T map safe driving scores, they plan to actively discuss with the authorities again. They also plan to introduce comprehensive mobility-related services such as customized insurance, loans, used cars, parking, and valet services.

The flagship service is expected to be small loans specialized for T map platform workers. Full-time workers such as designated drivers, freight drivers, and valets face significant restrictions in obtaining loans due to a lack of financial transaction history. To eliminate this financial blind spot, alternative credit evaluations will use platform activity records such as days worked, work activities, and customer feedback instead of financial transaction history. Platform workers who previously struggled with low credit scores in traditional credit evaluations are expected to benefit financially.

They are also planning B2B loan products for partner companies. Jaehwan Lee, head of growth strategy, cited the example of a freight brokerage platform partner company that had difficulty obtaining loans based on past performance or profits but was able to secure reasonable loans using KB Kookmin Bank's platform loan. This company significantly shortened the settlement cycle for vehicle owners through the platform loan, and the increased working capital burden was managed using KB Kookmin Bank's platform loan. It was also highlighted that while the general corporate loan limit is 3 billion KRW, using the platform loan can increase it up to 10 billion KRW.

Furthermore, they plan to promote cooperation in insurance areas linked to T map services such as designated driving, valet, and delivery. Utilizing the technologies and data of both companies, they aim to provide services to T map users and are reviewing the development of products like designated driving and delivery insurance for platform workers. Safe drivers will also receive practical benefits such as premium discounts to reduce costs.

Providing Previous Owner's Driving Score When Buying Used Cars

New services for general users will also be introduced. By linking KB Kookmin Bank's know-how in point systems and payment services with T map, consumers will be able to use mobility services more efficiently. Cooperation will also be pursued in the used car business. By linking T map's driving scores with KB Capital's used car platform 'KB ChaChaCha,' differentiated services such as providing the previous owner's driving score will be offered.

Since the customer bases of the two companies do not overlap, it is expected to increase customers for both. Jaehwan Lee, head of growth strategy, said, "T map has 13.6 million users, and KB Kookmin Bank has 9.5 million customers, with a non-overlapping user rate of 57.7%. This means we can cross-secure about 10 million monthly users from both companies."

Additionally, plans are underway to use KB Kookmin Bank's assets to grow T map Mobility services, known as the 'smart parking' service. Jaehwan Lee explained, "For example, bank branches close and become quiet in the evening, whereas the mobility market is busy at night. We are discussing the possibility of utilizing bank branch spaces for parking, valet, designated driving, and charging services."

SK Square: "Continuing Growth Strategies for Subsidiaries"

SK Square, the parent company, plans to continue growth strategies for subsidiaries including T map Mobility despite various uncertainties. Due to increased interest rates from the U.S. and the Russia-Ukraine war, subsidiaries such as One Store and SK Shielders have withdrawn their IPO plans. T map Mobility, which had set a mid-term goal for IPO in 2025, is also not in a safe zone.

Regarding this, Jaeseung Song, Managing Director of SK Square, said, "It is premature to comment on the timing of T map Mobility's listing," but added, "One Store and Shielders have postponed their plans, and currently, the global economic situation seems most important. Since it cannot be done with willpower alone, investment sentiment and macroeconomic conditions are crucial."

He continued, "Each company will need a certain 'live time' (rest period) to develop new growth engines and re-enter the market. The shareholders will work with the companies to consider growth strategies and partnerships to find the optimal timing."