RoK’s Lotte Card injects US$68 million into Vietnamese unit

Saturday, May 04, 2024 09:52

Two Lotte Card products. — Photo Korea Time

Lotte Card Co., Ltd, No.5 credit card issuer in the Republic of Korea, said on May 2 that it has funneled 93.7 billion KRW (US$68 million) into its Vietnamese unit – Lotte Finance Vietnam – to expand its business in the Southeast Asian country.

This is the largest capital increase since the card issuer began its business there in 2018, which indicates that the firm will accelerate expansion in the nation as business there has stabilised to a sustainable level.

A Lotte Card official said that the firm aims to become a financial company with a strong foothold in Vietnam based on a stable business structure.

Lotte Card acquired Techcom Finance Co.,Ltd, a Vietnamese consumer finance service provider six years ago to make inroads into the market.

The Korean firm developed its own credit ratings model, and established a risk-based pricing system to offer customers in Vietnam interest rates tailored to their credit ratings.

Besides, it expanded a buy now, pay later (BNPL) service, a type of short-term financing that allows customers to make purchases and pay for them at a future date, often without interest. — VNS

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