Obtained Australian Financial License
Completed Acquisition of Indonesian Local Financial Company
Initiated New Market Expansion
Hyundai Capital is accelerating its entry into new markets by preparing to establish subsidiaries in Australia and Indonesia.
On the 18th, Hyundai Capital announced that following its acquisition of a financial business license from Australian financial authorities last month, it has completed the acquisition of a local financial company to enter the Indonesian market.
Hyundai Capital is currently speeding up the establishment of ‘Hyundai Capital Australia.’ Hyundai Capital Australia is a captive financial company wholly owned (100% stake) by Hyundai Motor Group. After partially commencing operations in July this year, it plans to operate nationwide across Australia starting in November.
Hyundai Capital Australia plans to provide optimized financial products and services tailored to each vehicle for local customers who have not been able to use captive financial services when purchasing Hyundai Motor Group vehicles. In addition to basic products, it will introduce a 'residual value guaranteed' product that defers part of the vehicle price until maturity to reduce monthly installment burdens. It will also offer a 'grace period' product, allowing customers to pay only interest during an initial period and repay the remaining principal and interest during the remaining installment period. Fast and convenient digital financial services will also be introduced. Utilizing a global IT system independently developed by Hyundai Capital, the usual 2-3 day local review time will be drastically reduced to within 30 minutes. Furthermore, systems to respond to various local customer inquiries through AI chatbots and real-time chat consultation services will be established.
On the 17th, Hyundai Capital also completed the acquisition of 'Paramitra Multifinance,' a local credit-specialized financial company, to establish a subsidiary in Indonesia. Through follow-up procedures, the company plans to rename the subsidiary as 'Hyundai Capital Indonesia' (tentative) and officially start local operations from April next year.
Indonesia is a rapidly growing emerging market, recording economic growth rates in the 5% range for two consecutive years. It is considered a strategic hub for Hyundai Motor Group as it hosts production and sales bases in Southeast Asia. Hyundai Capital plans to target local customers by combining strategies optimized for the Indonesian market with advanced digital finance.
Hyundai Capital intends to strengthen local funding competitiveness and establish a sales network in major Indonesian cities based on a triangular partnership with the SINARMAS Group, ranked 4th in Indonesia’s business circles, and Shinhan Indonesia. It plans to launch various new products, including automobile leasing, to meet the diverse needs of local Hyundai Motor Group customers.
The new digital services to be introduced locally are also noteworthy. ‘Hyundai Capital Indonesia’ (tentative) will operate a dedicated application that allows dealers to conveniently handle quotation calculations and review tasks on smartphones or tablets. A digital automatic approval system will be introduced to significantly reduce processing procedures and time.
Mok Jin-won, CEO of Hyundai Capital, said, “We are preparing to officially start operations by completing the establishment of new products, services, and business systems that will set new standards in Australia and Indonesia, where we are newly entering,” adding, “We will bring a new wave of ‘K-Finance’ to the global consumer finance market.”
Currently, Hyundai Capital operates a total of 17 subsidiaries and 2 branches in 14 countries worldwide, including the United States, Canada, the United Kingdom, Germany, and Brazil.
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