Hanjin Co., Ltd. Sells Car Rental Business to Lotte Rental... Focusing on Core Business Competencies

Signed Asset Transfer Agreement Worth 60 Billion KRW
"Will Continue to Pursue Sale of Non-Core Business and Assets"

[Asia Economy Reporter Yoo Je-hoon] Hanjin Co., Ltd. has sold its rental car business to focus on its core business capabilities.

Hanjin Co., Ltd. announced on the 22nd that it signed an asset transfer contract worth 60 billion KRW, including about 3,000 rental cars, with Lotte Rental on the 21st.

Earlier, the two companies had been negotiating the main contract terms since February. Hanjin Co., Ltd. and Lotte Rental plan to complete the contract execution, including vehicle transfer and final sale price settlement, by May.

Hanjin Co., Ltd.'s sale of the non-core rental car business is part of the Hanjin Group's mid- to long-term vision and management development plan announced in February last year. Last year, Hanjin secured 40 billion KRW by selling Dongdaegu and Seodaegu bus terminals, and this year, it plans to actively sell low-utilization real estate such as the Busan Beomil-dong site and securitizable stocks, including the rental car business.

Hanjin Co., Ltd. also plans to use the proceeds from asset sales for investment in core businesses, establishment of IT operation systems, and securing financial soundness. Hanjin aims to achieve a 20% market share in the courier market and secure global supply chain management (SCM) capabilities by 2023.

A Hanjin representative stated, "We will continue to enhance management efficiency through bold restructuring, including focusing on nurturing core courier and logistics businesses and external sales of businesses with difficulties in securing competitiveness. While maintaining strong performance, we will devote all efforts to enhancing corporate value."

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