[Alpha Biz= Reporter Kim Jisun] Lotte Card announced on the 2nd that it has completed a $68 million (approximately 937 billion won) capital increase in its Vietnam subsidiary, Lotte Finance Vietnam. This is the largest increase since entering the Vietnamese market in 2018, signaling a full-fledged expansion of its business in the Vietnamese market.
The capital increase reflects the company's assessment that its Vietnam operations have stabilized at a sustainable growth level. The investment will be used for restructuring the business framework and expanding operational assets.
Lotte Card entered the Vietnamese market in 2018 by acquiring Techcom Finance, a local consumer finance company in Vietnam. Despite the lack of systematic credit information in Vietnam, Lotte Card developed its own credit rating model and implemented a Risk Based Pricing (RBP) system, offering differentiated interest rates based on customer creditworthiness. Furthermore, it transitioned from traditional offline operations to a digital approach based on big data, reducing customer acquisition costs.
AlphaBIZ Kim Jisun(stockmk2020@alphabiz.co.kr)
