Hyundai Construction Equipment develops financial instruments for customers in Asia
Hyundai Construction Equipment has signed a memorandum of understanding with South-Korea-based DGB Financial Group to develop financial products that customers in Asia can use to buy construction equipment.
The signing ceremony was attended by Kwon Ki-hyeong, executive vice president and CFO of Hyundai Construction Equipment; Oh Sung-ho, head of Group Strategy at DGB Financial Group; and Suh Jung-dong, CEO of DGB Capital.
Construction equipment is usually high-priced, with the average price of an excavator going close to 100 million won ($85,000); so, many purchasers depend on financial products such as leases and installment payments.
Based on the agreement, the two companies plan to launch their first construction equipment leasing financial product in Cambodia next month and expand related businesses throughout Asia.
Hyundai Construction Equipment plans to increase sales in the Asian market where financial programs are not yet advanced by linking the financial products to be developed jointly with DGB to equipment sales.
DGB Financial Group, which has been making efforts to expand its share of the Asian market, starting with Laos in 2016, and then Cambodia, Myanmar and Vietnam, also expects the agreement to further strengthen its business portfolio in Asia.