SEOUL, Oct. 29 (Korea Bizwire) — Hyundai Card, a leading credit card issuer in South Korea, has agreed to launch a joint venture in Vietnam in its first direct overseas investment, the company said Tuesday.
The company has signed an agreement to purchase a 50 percent stake in Vietnam’s Finance Company Limited for Community (FCCOM) for 49 billion won (US$41.9 million).
FCCOM is a subsidiary of Vietnam’s leading commercial bank, Vietnam Maritime Commercial Joint Stock Bank.
The purchase will likely be completed within the first quarter of next year, with the joint venture to begin operating in the second half.
“The entry into the Vietnamese market has a significant meaning in that it will mark Hyundai Card’s first direct entry into a foreign market,” Hyundai Card said in a press release.
Vietnam is one of the world’s fastest growing markets.
Its market for individual loans is currently growing at an annual average of 60 percent, with the number of credit card holders surging 27 percent on-year to 7.4 million last year.
Hyundai Card said it plans to actively explore other Southeast Asian markets.