Hyundai Capital
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| File:Hyndai Capital Logo.png | |
| Industry | Consumer Finance |
|---|---|
| Founded | 1993 |
| Headquarters | Seoul, South Korea |
Key people | Chung Tae Young, CEO |
| Products | New Car Financings Used Car Financings Auto Lease Personal Loan Mortgage |
| Revenue |  KRW 860 bn (2010 1Q) |
| KRW 214 bn (2010 1Q) | |
| KRW 170 bn (2010 1Q) | |
| Website | www.hyundaicapital.com/english |
Hyundai Capital Services (Hyundai Capital) is a South Korean consumer finance company providing a range of auto financing, auto leasing service, personal loans and home mortgages. Hyundai Capital is a joint venture between Hyundai Motor Company (56.48%) and GE Capital (43.30%).
Established in 1993, Hyundai Capital claims to be the biggest auto financing provider in Korea. Hyundai Capital is also a major player in the auto lease market. Hyundai Capital is advancing into overseas markets such as China, Europe and the U.S. It claims its innovative corporate culture is bench-marked by various Korean companies and government agencies, including Seoul Metropolitan Government and Korea’s National Tax Service.[citation needed]
Overview
Hyundai Capital is a joint venture between Hyundai Motors and GE Capital and is a leading financial services company in Korea. As of March 31, 2010, Hyundai Motors and GE Capital owned 56.48% and 43.30% of Hyundai Capital’s outstanding shares, respectively.[citation needed] Hyundai Capital’s principal business areas are as follows:
• Automotive Finance: Hyundai Capital provides automotive financing to purchasers of new and used vehicles, arranged as either installment financing or loans; • Automotive Leasing: Hyundai Capital provides automotive leasing to individual and corporate customers, including maintenance and accident management services and arrangement of third-party automobile insurance; and • Personal Loans: Hyundai Capital provides unsecured and unguaranteed personal loans and mortgage loans to individuals and small business owners. Hyundai Capital utilizes its extensive distribution channels to cross-sell its personal loan and mortgage loan products to its existing automotive financing and automotive leasing customers.
Hyundai Capital recorded operating revenue and net income of W1,045.7 billion and W141.3 billion, respectively, in the 1st quarter of 2009, and W859.6 billion (US$760.2 million) and W169 billion (US$149.5 million), respectively, in the 1st quarter of 2010. As of March 31, 2010, on a reported basis, Hyundai Capital had total assets of W16,004.9 billion (US$14,153.6 million) and shareholders’ equity of W2,112.6 billion (US$1,868.2 million). Hyundai Capital services automotive financing receivables securitized in ABS transactions, as well as 60-day overdue and wholly written-off receivables from its affiliate, HyundaiCard. As of March 31, 2010, Hyundai Capital had total managed assets of W16,634.8 billion (US$14,710.6 million).[citation needed]
History
Hyundai Capital was incorporated in December 1993 as Hyundai Auto Finance Co., Ltd. Hyundai Capital subsequently changed its trade name to Hyundai Financial Services Co. in April 1995. In January 1996, Hyundai Capital was licensed as an installment financing company by the Ministry of Strategy and Finance of Korea. Shortly thereafter, Hyundai Capital commenced its housing and automotive installment financing businesses and began providing automotive financing to purchasers of new Hyundai Motors vehicles and used vehicles.
In October 2004, Hyundai Capital and Hyundai Motors entered into a strategic alliance with GE Capital whereby GE Capital, through its wholly-owned subsidiary, General Electric Capital International Holdings Limited, acquired a 38.0% equity interest in Hyundai Capital. In November 2005, GE Capital increased its equity interest in Hyundai Capital to 43.0%. In conjunction with its initial share acquisition, GE Capital also transferred the consumer finance (excluding mortgage loan business) and used vehicle installment financing businesses of its subsidiary, GE Capital Korea, to Hyundai Capital. Since forming the strategic alliance with GE Capital, Hyundai Capital has launched joint products with GE Capital. See “Certain Relationships and Related Party Transactions”. In June 2006, Hyundai Capital purchased GE Capital Korea’s mortgage loan business pursuant to an asset 86 sale agreement under which GE Capital Korea agreed to continue ownership and management of the balance of mortgage outstanding at the time the sale was consummated and Hyundai Capital agreed to own and manage all new mortgages thereafter. Subsequently, in September 2007, Hyundai Capital acquired W150.0 billion of non-mortgage assets from GE Capital Korea in a direct loan purchase and also purchased W156.0 billion of mortgage-backed assets securitized by mortgage assets of GE Capital Korea.
In February 2010, Hyundai Capital and Santander Consumer Bank AG (“SCB”) entered into a joint venture to create Hyundai Capital Germany GmbH (“Hyundai Capital Germany”).