SK Networks to sell car rental business to Affinity for $610M

SK Networks is selling SK Rent-a-Car, a car rental company, to Hong Kong-based Affinity Equity Partners for around 850 billion won ($610 million).

SK Rent-a-Car's used car center in Hwaseong, Gyeonggi. [JOONGANG ILBO]

SK Networks is selling SK Rent-a-Car, a car rental company, to Hong Kong-based Affinity Equity Partners for around 850 billion won ($610 million).

The company is now under negotiation after the private equity firm was chosen as the preferred bidder for the sale, SK Networks said in a regulatory filing on Tuesday.

"SK Networks signed a legally binding memorandum of understanding with Affinity Equity Partners for the sale on Tuesday," it said. "The sale price is about 850 billion won, the 100 percent share SK Networks owns for SK Rent-a-Car."

SK Rent-a-Car is currently the No. 2 car rental company in Korea after Lotte Rental. It posted 122 billion won in operating profit last year, up 28 percent on year with 1.4 trillion won in revenue, up 12.5 percent on year.

SK Networks in 2019 acquired 42 percent of AJ Rent-a-Car for 300 billion won and merged the company with its car rental business to form SK Rent-a-Car the following year.

SK Networks will likely spend the raised funds on the AI business as the company has selected this as its major business focus. SK Networks said earlier it would log 700 billion won of operating profit from AI businesses in 2026, a threefold jump from last year.

BY SARAH CHEA [chea.sarah@joongang.co.kr]