Accelerating Expansion in Emerging Markets, Starting with Indonesia
Aiming to Increase Market Share in Japanese- and Chinese-Dominated Regions
Strengthening Sales and Financial Support with Hyundai and Develon Brands
HD Hyundai Site Solutions is joining forces with KB Financial Group to accelerate its entry into the Southeast Asian construction equipment market. This move is seen as a strategic effort to increase market share in a region traditionally dominated by Japanese and Chinese companies.
HD Hyundai Site Solutions and KB Financial Group signed a "Financing Partnership for Southeast Asia Business Expansion" on the 4th at the HD Hyundai Global R&D Center. From the left in the photo, Cho Youngchul, President of HD Hyundai Site Solutions, and Lee Jaegun, Head of Global Business Division at KB Financial Group. Photo by HD Hyundai Site Solutions
HD Hyundai Site Solutions announced on the 5th that it had signed a "Financing Partnership for Southeast Asia Business Expansion" with KB Financial Group at the Seoul Global R&D Center. The signing ceremony, held the previous day, was attended by Cho Youngchul, President of HD Hyundai Site Solutions; Song Heejun, Head of Sales Strategy Division; Bae Yeonju, Head of Finance Division; Lee Jaegun, Head of Global Business Division at KB Financial Group; and Bin Jungil, President of KB Capital. Under this agreement, the two parties will pursue strategic collaborative projects in emerging markets such as Indonesia, Thailand, Vietnam, and India.
Southeast Asia is considered one of the "global top four" construction equipment markets, alongside Europe, North America, and China. Among these, Indonesia is a key region, with annual demand for approximately 20,000 units of equipment. With a population of 280 million and the world’s 16th largest economy, Indonesia has seen its construction demand surge, recording an average annual growth rate of 13% over the past five years.
Through this partnership, HD Hyundai Site Solutions aims to reduce the initial purchase burden for Indonesian customers and strengthen its competitiveness in a market dominated by Japanese and Chinese companies. Specifically, the company plans to expand its sales network and broaden the scope of financial support by leveraging its main brands, Hyundai and Develon. It also intends to enhance after-sales management by linking dealer and financial networks. The company’s goal is to increase annual sales in Indonesia by more than 20% from the current level of around 1,000 units.
Cho Youngchul, President of HD Hyundai Site Solutions, stated, "Tailored financial support is essential to secure an advantage in global competition," adding, "This partnership will serve as an opportunity to further strengthen our business capabilities in emerging markets." Lee Jaegun, Head of Global Business Division at KB Financial Group, commented, "We expect that the combination of construction equipment distribution channels and financial services will create a new type of overseas financial ecosystem," and added, "In the future, we will expand various collaborative models not only in emerging markets but also in advanced markets."
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