Shinhan Card, Kazakh auto dealer sign nearly $50M joint venture deal

Shinhan Card is forming a joint venture with a local car dealership in Kazakhstan in a bid to strengthen retail services.

Shinhan Card CEO Moon Dong-kwon, right, and Aster Group Chairman Alexey Bakal pose for a photo after signing a deal to establish a joint venture at Shinhan Card headquarters in central Seoul on Wednesday. [SHINHAN CARD]

Shinhan Card is forming a joint venture with a local car dealership in Kazakhstan in a bid to strengthen retail services.

The Seoul-based card operator said Thursday it and Kazakh auto dealer Aster would invest 31 billion won ($24 million) each over the next five years to turn the Korean company's Kazakhstan-based entity, Shinhan Finance, into a 62 billion won joint venture.

Shinhan Card will own 50.1 percent of the joint venture, leaving Aster with 49.9 percent.

Established in November 2014, Shinhan Finance posted annual growth of 55 percent over the past three years. It offers loans for cars and credit.

Shinhan Card CEO Moon Dong-kwon said in a statement it would develop Shinhan Finance into a financial company specializing in retail loan services in Kazakhstan.

BY JIN MIN-JI [jin.minji@joongang.co.kr]