KB Kookmin Bank Becomes Fourth Largest Shareholder of Tmap Mobility... Plans to Create Tmap Exclusive Insurance and Loan Products

200 Billion Won New Share Investment... Securing 8.3% Stake
For Substitute Drivers, Truck Drivers, etc.
Developing Customized Loans and Insurance for Financially Vulnerable Groups
Products Utilizing Data Such as Used Car Rental History

From the left, Jongho Lee, CEO of T map Mobility, and Jaegun Lee, President of KB Kookmin Bank, are posing for a photo at the subscription agreement signing ceremony for new shares to promote ultra-cooperation between mobility and finance, held on the 19th at T Tower, Euljiro, Jung-gu, Seoul. Photo by T map Mobility

[Asia Economy Reporter Minyoung Cha] T map Mobility, a mobility platform subsidiary of SK Square, has welcomed KB Kookmin Bank as its fourth largest shareholder. It is considered unusual for a major financial institution to make a large-scale investment in a domestic mobility platform. The two companies plan to launch insurance and loan products for platform full-time workers who were financially vulnerable, such as designated drivers and truck drivers, and will embark on a super-collaboration between finance and mobility.

KB Kookmin Bank secures 8.3% stake with 200 billion KRW investment

On the 22nd, T map Mobility announced that KB Kookmin Bank acquired new shares of T map Mobility worth 200 billion KRW, resulting in an 8.3% stake. This is the fourth highest shareholding after major shareholders SK Square (60.1%), Apalma Capital (12.7%), and East Bridge (12.7%). T map Mobility was valued at 2.2 trillion KRW by KB Bank, more than doubling its corporate value compared to 2020 at the time of its spin-off.

This investment is significant as it is the first large-scale investment by a major financial institution in a domestic mobility platform company. The two companies have been discussing investment-related matters for six months since signing a strategic agreement for environmental, social, and governance (ESG) and win-win collaboration at the end of last year. It is also a successful case of SK Square's 'bolt-on investment.' Bolt-on investment is a strategy to acquire or collaborate with other companies that have strong business relevance to increase corporate value. The competitiveness of the T map platform, which has 14 million monthly active users (MAU), and the growth potential for future mobility such as autonomous driving and urban air mobility (UAM) were comprehensively considered.

Development of insurance and loan products for designated drivers and truck drivers

The two companies plan to introduce comprehensive mobility-related services tailored for T map platform workers, including insurance, loans, used cars, parking, and valet services. Specialized financial products targeting specific customer groups such as platform workers, smart parking services for offline branches, and used car businesses will start first. All KB Financial Group affiliates, including non-life insurance, capital, and card companies, will participate in this process. T map Mobility plans to intensify business cooperation with KB Kookmin Bank while investing resources in strengthening existing mobility business capabilities, expanding the ecosystem, and recruiting developers.

A representative service the two companies are planning is a small loan specialized for T map platform workers. Full-time workers such as designated drivers, truck drivers, and valets face significant restrictions in obtaining loans due to a lack of financial transaction history. To eliminate this financial blind spot, the focus will be on platform activity records such as the number of working days, work activities, and customer feedback instead of financial transaction history. Platform workers struggling with low credit scores are also expected to benefit from various financial advantages.

Cooperation in the insurance sector linked to T map services such as designated driving, valet, and delivery will also be pursued. Using the technology and data of both companies, services will be provided to T map users, and product development such as designated driving and delivery insurance for platform workers is under review. Safe drivers will also receive practical benefits such as discounts on insurance premiums to reduce costs.

New services for general users will also be introduced. By linking KB Kookmin Bank's know-how-based point system and payment services with T map, consumers will be able to use mobility services more efficiently. Cooperation in the used car business is also underway. By linking T map's driving score with KB Capital's used car platform 'KB ChaChaCha,' differentiated services such as providing the previous owner's driving score will be offered.

SK Square's behind-the-scenes efforts bear fruit

The success of this investment attraction is attributed to SK Square's accumulated investment banking (IB) industry network, ICT platform investment experience, and professional personnel. Beyond simple synergy between mobility and finance, the potential for cooperation with SK Square's ICT family in the future also had an impact.

In line with SK Square's investment portfolio plan, T map Mobility secured 400 billion KRW from domestic and foreign private equity funds (PEF) in April last year. With an additional 200 billion KRW raised this time, it has laid the foundation for growth. Based on this, it plans to accelerate innovation not only in the current mobility services but also in future mobility services such as urban air mobility (UAM) and autonomous driving.

Lee Jae-geun, CEO of KB Kookmin Bank, said, "We are very honored to work with T map Mobility, which leads the mobility market," adding, "Through the exchange of core competencies and asset bases that both companies possess, we hope to become finance and mobility that change the world beyond growth."

Song Jae-seung, MD of SK Square, said, "This investment attraction is an important starting point to strengthen competitiveness in the mobility market," and added, "SK Square will continue flexible profit realization and strive to enhance the value of the entire subsidiary portfolio."

Lee Jong-ho, CEO of T map Mobility, said, "The cumulative number of subscribers of T map Mobility and KB Kookmin Bank reaches 50 million," and added, "T map will evolve into a mobility platform that everyone can use easily and conveniently nationwide, while seeking ways to create a healthy market ecosystem and coexist with existing stakeholders."

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