Shinhan Card expands into Southeast Asia for breakthrough

[Courtesy of Shinhan Card]

South Korea’s Shinhan Card Co., is seeking to expand its overseas operations in Southeast Asia, including Indonesia and Myanmar, as a breakthrough to navigate industry-wide challenges posed by high-interest rates.

According to industry sources on Wednesday, PT Shinhan Indo Finance, Shinhan Card’s Indonesian subsidiary, launched a local auto installment finance business in January. Previously, the company focused on heavy machinery installment finance, leveraging the booming local construction industry. However, it has now added retail automotive finance, considering the recent establishment of auto plants by the Hyundai Motor Group in Indonesia and the growing local demand for cars.

The auto installment finance business is carried out in collaboration with the local car dealer group, Indomobil Group. Shinhan Card provides installment finance services for cars sold by Indomobil Group, which has a partnership with Kia Corp. and sells Korean-made cars.

Shinhan Microfinance Co., Shinhan Card’s Myanmar subsidiary, is also planning to resume operations. The company, which has been effectively in a closed state due to the local environment, plans to focus on areas where operations are feasible, primarily in the capital and central regions, after restructuring the local branches.

It is reported that the company is currently preparing for financing, with a goal to generate profits this year.

With the expansion of these operations, Shinhan Card’s overseas subsidiaries are expected to gain momentum, building on the growth trend observed each year after entering foreign markets.

Shinhan Card has local subsidiaries in Indonesia, Kazakhstan, and Vietnam, with the assets of these overseas subsidiaries reaching 1.03 trillion won ($775 million) at the end of the third quarter last year, up from 533.3 billion won at the end of 2020.

“To enhance profitability this year, we plan to expand our auto installment finance business and actively pursue opportunities not only domestically but also in overseas markets,” said the company.