Hyundai Card’s global business is drawing interest over whether the company will successfully debut in the U.S. credit card market.
CEO Ted Chung’s willingness to tap the world’s largest credit card market could also be meaningful as Hyundai Motor, the majority shareholder of Hyundai Card, has actively been expanding its presence in North America.
Ted Chung is a son-in-law of Hyundai Motor chairman Chung Mong-koo and also holds the post of Hyundai Capital CEO, which offers installment financing to buyers for Hyundai vehicles.
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Ted Chung |
As Hyundai Motor and its affiliate Kia Motors saw their combined market share approach 10 percent in the U.S. market, financial networks for sales have also become important, industry sources said.
In Korea, holders of Hyundai Card enjoy a discount when they purchase Hyundai-Kia vehicles, a research analyst said.
“Discount for VIP customers may be necessary amid keen sales competition with global automakers there.”
He said it is undeniable that the parent Hyundai Motor has played a significant role in pushing up Hyundai Card to the No. 2 position in the local credit card market.
Its advancement into the U.S., if successful, will likely be through a tie-up with an American commercial bank, sources said.
Most of U.S. credit card issuers are business units of commercial banks.
Hyundai Capital is jointly controlled by Hyundai Motor and U.S.-based GE Capital.
By Kim Yon-se (
kys@heraldcorp.com)
