SK Corp. Secures 65 Billion KRW Investment for Socar Malaysia

Local Multinational Company Saimdabi Secures Eastbridge Investment
Socar Malaysia Becomes No.1 in Car Sharing Market 3 Years After Entry
Aiming to Grow as Southeast Asia's Leading Car Sharing Platform

[Asia Economy Reporter Hwang Yoon-joo] Socar Malaysia, whose largest shareholder is SK Inc., has attracted an investment totaling 65 billion KRW (55 million USD). Socar Malaysia is the first overseas expansion model of the Korean-style car-sharing business, and SK Inc. became the largest shareholder by acquiring additional shares in Socar in 2020, leading the local business.

On the 16th, SK Inc. announced that it received an investment of 65 billion KRW from two entities: the global private equity firm East Bridge Partners and the Malaysian multinational company Sime Darby.

SK Inc. established the joint venture Socar Malaysia with Socar in 2017 and started car-sharing services in Malaysia from January 2018. Socar Malaysia aims to surpass Malaysia's top companies and expand its business into major Southeast Asian markets, growing into a leading mobility platform company in Southeast Asia.

In the early stages of the business, SK Inc. recruited local car-sharing business experts as executives to focus on localizing the Korean-style car-sharing platform. Additionally, through nearly double the aggressive vehicle expansion compared to competitors and rapid service expansion to major metropolitan areas such as Kuala Lumpur, Socar Malaysia grew into the largest local car-sharing operator within about two years of its launch.

Having surpassed 1 million members and secured over 90% market share, Socar Malaysia has firmly established its position as the number one in Malaysia. In December last year, it also entered the Indonesian market, securing about 100,000 members within six months, thereby establishing its presence as a leading car-sharing company.

Malaysia is evaluated as a market with very high potential demand for car-sharing services in Southeast Asia due to its high population density and relatively weak public transportation infrastructure. Since 2017, the Malaysian car-sharing industry has experienced nearly double growth annually in terms of vehicle supply, currently operating about 7,000 vehicles. Indonesia, with a population of approximately 300 million, is the largest market in Southeast Asia and has recently achieved an average annual GDP growth rate of 5%, indicating immense growth potential in the mobility sector.

In particular, this investment recognized the high growth potential of ‘Trevo,’ a peer-to-peer (P2P) car rental platform launched by Socar Malaysia in Malaysia and Indonesia in 2020. Trevo was developed as a Southeast Asia market-tailored platform based on SK Inc.'s investment capabilities in the global leading P2P company, the U.S.-based Turo, and is attracting attention for its rapid growth.

SK Inc. plans to accelerate the expansion of its P2P business into Indonesia, which ranks fourth in the world by population and has high growth potential, further solidifying its position as a leading mobility platform in Southeast Asia.

Shin Jung-ho, Head of the Digital Investment Center, said, "SK Inc. will continue its path as an investment-specialized company that creates a virtuous cycle by proving the growth potential of platform businesses, successfully recovering its investment portfolio in the future, and reinvesting in high-growth digital fields such as AI and autonomous driving."

Meanwhile, SK Inc. has been investing in rapidly growing new mobility services, starting with Socar, and including Grab, Turo, and Otonomo, which are the number one car-sharing and mobility technology companies in their respective global regions.

This content was produced with the assistance of AI translation services.