Hyundai Capital to fully operate in Indonesia by 2025

Hyundai Capital expanded its global presence by acquiring Indonesia's Paramitra Multifinance for $17.8 million and obtaining an operation for financial services in Australia.

Hyundai Captial said Thursday that it had completed the acquisition of an Indonesian company on Wednesday and earned an operation license from Australia in March. [HYUNDAI CAPITAL]

Hyundai Capital is ramping up its presence in the global market. Its latest destinations: Indonesia and Australia.

The firm said Thursday that it had completed the acquisition of Paramitra Multifinance, a Jakarta, Indonesia-based financial firm. The deal is worth $17.8 million, according to its regulatory filing.

The company plans to rebrand its subsidiary and begin full operations in the Southeast Asian country in April 2025. Indonesia, a fast-emerging economy with an on-year growth rate of over 5 percent, is one of the region's key markets for Hyundai Motor, which is Hyundai Capital's parent company.

Hyundai aims to enhance its funding capabilities and set up a business network in Indonesia in collaboration with Sinar Mas, one of the country's largest conglomerates, and Bank Shinhan Indonesia.

Meanwhile, Hyundai Capital was granted an operation license from Australian authorities for financial services in March. It plans to establish Hyundai Capital Australia, which will be a wholly owned subsidiary of Hyundai Motor Group and provide financial services for Hyundai car owners in Australia.

“Hyundai Capital has secured a competitive edge in marketing, digitization and such through fierce competition in the domestic car financing market,” said Hyundai Capital CEO Mok Jin-won.

“Such capabilities have become a significant forte unique to Hyundai Capital when we compete against local players in overseas markets,” said Mok.

Hyundai Capital currently has a presence in 14 countries including the United States, Canada, Britain, Germany and Brazil.

BY SHIN HA-NEE [shin.hanee@joongang.co.kr]