Hyundai Capital
Encyclopedia
Hyundai Capital Services (Hyundai Capital) is a South Korea
n 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.
Korea. As of March 31, 2010, Hyundai Motors and GE Capital owned 56.48% and 43.30% of Hyundai Capital’s outstanding
shares, respectively. 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).
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
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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”).
South Korea
The Republic of Korea , , is a sovereign state in East Asia, located on the southern portion of the Korean Peninsula. It is neighbored by the People's Republic of China to the west, Japan to the east, North Korea to the north, and the East China Sea and Republic of China to the south...
n 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
Hyundai Motor Company
Hyundai Motor Company is a Korean multinational automaker based in Seoul, South Korea which, along with Kia, comprises the Hyundai Kia Automotive Group, the world's fourth largest automaker as of 2009. As of 2011, it is the world's fastest growing automaker for two years running...
(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.
Overview
Hyundai Capital is a joint venture between Hyundai Motors and GE Capital and is a leading financial services company inKorea. As of March 31, 2010, Hyundai Motors and GE Capital owned 56.48% and 43.30% of Hyundai Capital’s outstanding
shares, respectively. 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).
History
Hyundai Capital was incorporated in December 1993 as Hyundai Auto Finance Co., Ltd. Hyundai Capitalsubsequently 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”).