Lotte Card Increases Capital by 93.7 Billion KRW in Vietnam Subsidiary... "Accelerating Local Market Penetration"

Lotte Finance Vietnam launched the 'Lotte Vietnam PLCC' card last month for customers using local Lotte Mall, Lotte Mart, and Lotte Department Store. [Image source=Yonhap News]

Lotte Card announced on the 2nd that it has completed a capital increase of $68 million (93.7 billion KRW) in its Vietnamese subsidiary, Lotte Finance Vietnam. This is the largest investment since starting its business in Vietnam in 2018.

With this capital increase, Lotte Card aims to accelerate business expansion in the Vietnamese market and achieve profitability within the year. The investment will be used to establish a foundation for business structure reorganization and secure stable growth capacity through operating funds for expanding business assets. The plan is to rapidly expand high-quality assets to grow its business in the Vietnamese consumer finance market and secure business stability in the mid-term.

Lotte Card entered the Vietnamese market in 2018 by acquiring the local consumer finance company Techcom Finance. Since then, it has built its own credit management model called the RBP (Risk Based Pricing) system and enhanced competitiveness by shifting its sales approach to big data-based digital methods. Additionally, it is expanding the BNPL (Buy Now Pay Later) service through cooperation with local companies and strengthening collaboration with Lotte Group affiliates operating in Vietnam.

A Lotte Card representative stated, “This investment reflects our confidence in the various experiences, know-how, and achievements gained through entering the Vietnamese consumer finance market,” adding, “We will strive to become a prominent finance company in Vietnam based on a stable business structure.”

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