LOTTE Finance Company Profile

Background

Overview

LOTTE Finance Vietnam Co., Ltd. (LOTTE Finance) is a wholly foreign-invested financial services company operating in Vietnam. Established as a subsidiary of LOTTE Card, a leading South Korean credit card issuer, LOTTE Finance commenced operations in Vietnam in December 2018. The company received its business license from the State Bank of Vietnam in September 2018, marking LOTTE Card as the first South Korean credit card company authorized to operate in Vietnam.

Mission and Vision

LOTTE Finance aims to become a leading consumer finance services provider in Vietnam by leveraging advanced technology to develop convenient financial products and enhance customer satisfaction. The company is committed to contributing to Vietnam's economic development by expanding access to financial services, creating jobs, and improving the standard of living for Vietnamese people.

Primary Area of Focus

LOTTE Finance focuses on providing a range of financial services, including consumer loans, installment loans, car loans, buy now pay later options, and credit card issuance. The company also offers financial services tailored for corporate clients and small-to-medium enterprises, addressing the growing demand for financing solutions in the Vietnamese market.

Industry Significance

As a subsidiary of LOTTE Card, LOTTE Finance benefits from the extensive experience and technological expertise of its parent company, enabling it to introduce innovative financial products and services to the Vietnamese market. The company's entry into Vietnam reflects the growing interest of South Korean financial institutions in Southeast Asia and contributes to the diversification of financial services available to Vietnamese consumers.

Key Strategic Focus

Core Objectives

Establish a strong presence in the Vietnamese consumer finance market.

Develop and offer a diverse range of financial products tailored to local consumer needs.

Leverage advanced technology to enhance risk management and customer experience.

Expand the company's service network to reach a broader customer base across Vietnam.

Specific Areas of Specialization

Consumer loans: Providing accessible financing options for personal needs.

Credit cards: Offering various credit card products with competitive benefits.

Corporate financing: Supplying financial solutions for businesses, including small-to-medium enterprises.

Key Technologies Utilized

LOTTE Finance employs advanced credit management technologies, including fintech and big data analytics, to develop effective underwriting processes and customer information appraisal systems. These technologies enable the company to make informed lending decisions and respond swiftly to market changes.

Primary Markets or Conditions Targeted

LOTTE Finance primarily targets the Vietnamese consumer finance market, focusing on middle-income earners and small-to-medium enterprises seeking accessible and convenient financial solutions. The company aims to address the growing demand for consumer financing and contribute to the development of a healthy financial market in Vietnam.

Financials and Funding

Funding History

LOTTE Finance is a wholly owned subsidiary of LOTTE Card, which acquired a 100% stake in Techcom Finance, a Vietnamese consumer finance company, in March 2018. This acquisition marked the beginning of LOTTE Finance's operations in Vietnam.

Total Funds Raised

Specific details regarding the total funds raised by LOTTE Finance are not publicly disclosed. However, the company's establishment and operations are supported by the financial resources and expertise of its parent company, LOTTE Card.

Notable Investors

As a subsidiary of LOTTE Card, LOTTE Finance benefits from the backing of LOTTE Corporation, a leading South Korean conglomerate with diverse business interests, including finance, retail, and manufacturing.

Intended Utilization of Capital

The capital invested in LOTTE Finance is utilized to establish and expand the company's operations in Vietnam, develop and offer a range of financial products, and invest in technology infrastructure to enhance risk management and customer service capabilities.

Pipeline Development

Key Pipeline Candidates

LOTTE Finance's product pipeline includes:

Consumer Loans: Accessible financing options for personal needs.

Credit Cards: Various credit card products with competitive benefits.

Corporate Financing: Financial solutions for businesses, including small-to-medium enterprises.

Stages of Clinical Trials or Product Development

As a financial services company, LOTTE Finance does not engage in clinical trials. The company focuses on the development and launch of financial products tailored to the Vietnamese market.

Target Conditions

LOTTE Finance aims to address the financial needs of Vietnamese consumers and businesses, focusing on providing accessible and convenient financing solutions.

Relevant Timelines for Anticipated Milestones

Since its official launch in June 2019, LOTTE Finance has been expanding its service network and product offerings. The company plans to continue this expansion, aiming to establish a significant presence in the Vietnamese consumer finance market.

Technological Platform and Innovation

Proprietary Technologies

LOTTE Finance has developed its own credit rating model and established a "Risk Based Pricing" system that provides differentiated interest rates according to customer creditworthiness.

Significant Scientific Methods

The company employs advanced credit management technologies, including fintech and big data analytics, to develop effective underwriting processes and customer information appraisal systems. These technologies enable LOTTE Finance to make informed lending decisions and respond swiftly to market changes.

Leadership Team

Key Executive Profiles

Mr. Kim Min Geun: Chairman

Mr. Kong Sung Sik: CEO

Professional Backgrounds

Mr. Kim Min Geun: Specific details regarding Mr. Kim's professional background are not publicly disclosed.

Mr. Kong Sung Sik: Specific details regarding Mr. Kong's professional background are not publicly disclosed.

Key Contributions or Roles Within the Company

Mr. Kim Min Geun: As Chairman, Mr. Kim provides strategic direction and oversight for LOTTE Finance's operations in Vietnam.

Mr. Kong Sung Sik: As CEO, Mr. Kong is responsible for the day-to-day management and operational execution of the company's business strategies.

Competitor Profile

Market Insights and Dynamics

The Vietnamese consumer finance market is experiencing significant growth, driven by increasing household consumption and a large young population. This presents opportunities for financial institutions to offer a range of products tailored to local consumer needs.

Competitor Analysis

LOTTE Finance faces competition from both local and international financial institutions operating in Vietnam. Key competitors include:

Techcom Finance: A Vietnamese consumer finance company offering similar financial products.

Home Credit Vietnam: A subsidiary of Home Credit Group, providing consumer loans and credit cards.

FE Credit: A leading consumer finance company in Vietnam, offering personal loans and credit cards.

Strategic Collaborations and Partnerships

LOTTE Finance has established partnerships with various entities to enhance its product offerings and expand its customer base. Notably, the company has collaborated with local e-commerce and electronic wallet companies to expand its Buy Now, Pay Later (BNPL) services.

Operational Insights

LOTTE Finance differentiates itself through its advanced credit management technologies and a customer-centric approach, aiming to provide accessible and convenient financial solutions tailored to the Vietnamese market.

Strategic Opportunities and Future Directions

LOTTE Finance plans to continue expanding its service network and product offerings, aiming to establish a significant presence in the Vietnamese consumer finance market. The company is committed to leveraging its technological capabilities to enhance risk management and customer service, contributing to the development of a healthy financial market in Vietnam.