Lotte Card's subsidiary in Vietnam is set to become the first domestic financial company to transition into a comprehensive finance firm. Moving beyond personal loans and credit cards, the company aims to expand its business scope to include corporate loans and leasing, thereby enhancing its local revenue base.
On September 7, Lotte Card announced that its Vietnam subsidiary, Lotte Finance Vietnam, received approval from the State Bank of Vietnam (SBV) on August 28 to change its status from a 'consumer finance company' to a 'comprehensive finance company.'
This marks the first instance of a domestic financial company in Vietnam transitioning to a comprehensive finance firm among consumer finance companies.
With this approval, Lotte Finance Vietnam can now broaden its target clientele from individual consumers to include businesses and entrepreneurs.
In particular, the Vietnamese government's eco-friendly policies are driving the adoption of electric vehicles, prompting the company to develop financing options for commercial electric vehicles as a new growth area.
Lotte Finance Vietnam will also enter the leasing business. After entering the automotive leasing market, the company plans to expand its offerings to include medical equipment and construction machinery in the future.
The name of Lotte Finance Vietnam will also be changed to Lotte General Finance Vietnam. Additionally, starting next year, the company plans to strengthen its corporate review organization to enhance its risk assessment system and increase corporate loans, focusing on existing partners.
Lotte Card explained that it received support from the Financial Services Commission, the Financial Supervisory Service, and the Vietnamese Embassy in South Korea during the approval process.
Jung Sang-ho, CEO of Lotte Card, stated, "This transition to a comprehensive finance company will allow us to expand our business portfolio and diversify our revenue base, establishing a foundation for long-term growth. We expect the growth of our Vietnam subsidiary to contribute to enhancing Lotte Card's corporate value as well."
* This article has been translated by AI.
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