Lotte Card’s Vietnamese Subsidiary Converts into a General Finance Company, First Among Financial Firms Operating in Vietnam

[Financial News] Lotte Card is making a full-scale push into Vietnam’s corporate finance market. As its local subsidiary, LOTTE FINANCE VIETNAM, converts into a general finance company, it is expanding beyond individual consumer finance into corporate loans and leasing. The move is significant because it is the first such conversion among both Korean financial companies and local consumer finance companies operating in Vietnam.
According to Lotte Card on the 7th, LOTTE FINANCE VIETNAM received approval from the State Bank of Vietnam (SBV) on the 28th of last month to convert from a consumer finance company into a general finance company.
With the approval, the company’s target customers will expand from individuals to corporations and business operators. It can now expand credit and collateral-backed loans for financially sound companies, as well as commercial vehicle financing, creating new sources of revenue.
In particular, as electric vehicle adoption accelerates under the Vietnamese government’s environmental policies, the company plans to develop financing for commercial electric vehicles as a new growth area.
The company will also enter the leasing business. In addition to its existing personal loan and credit card operations, it will be able to offer leasing services. It plans to first target the automobile leasing market and later expand its financial services into growth industries such as medical equipment and construction machinery.
The company’s legal name will also be changed to “Lotte General Finance Vietnam.” The new name will be applied sequentially at branches and other business locations.
In line with the expansion of its corporate finance business, the company will strengthen its corporate credit-review organization starting next year. It plans to upgrade its review and risk-assessment systems for corporate customers and expand corporate lending, initially focusing on existing partners.
The Financial Services Commission (FSC), the Financial Supervisory Service, and the Embassy of Vietnam in Korea also supported the conversion process. LOTTE FINANCE VIETNAM explained that it secured approval for the conversion into a general finance company through continued consultations with Vietnamese authorities.
Jung Sang-ho, CEO of Lotte Card, said, “The conversion into a general finance company will allow us to expand our business portfolio and diversify our earnings base.” He added, “We expect the growth of our Vietnamese subsidiary to contribute to enhancing Lotte Card’s corporate value.”

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