[Alpha Biz= Kim Sang Jin] T-money has withdrawn from its long-running overseas transport card operations by selling its stake in a Mongolian subsidiary, marking the end of more than a decade of direct international expansion in the sector.
According to its consolidated audit report disclosed on March 31, T-money sold its 55% stake in Ulaanbaatar Smart Card Co., LLC in May last year. While the transaction value was not disclosed, the company effectively exited the local business by transferring controlling ownership to the Mongolian government.
Launched in 2015 alongside the rollout of Ulaanbaatar’s public transportation payment system, the venture had been considered a flagship example of exporting Korea’s “Seoul-style” transit card model. T-money was responsible for building the fare payment infrastructure, issuing cards, and operating settlement platforms for the city’s bus system.
However, the Mongolian operation struggled to achieve profitability. Public transportation fares and card fee structures were largely dictated by government policy, limiting the company’s ability to independently design a sustainable revenue model. Fare increases were also infrequent, with only one adjustment over the past decade, leading to prolonged operating losses.
Over the past 10 years, the Mongolian subsidiary recorded cumulative comprehensive losses of approximately KRW 21.6 billion. T-money initially invested around KRW 16.5 billion in system development, with losses primarily stemming from ongoing operational deficits. On a consolidated basis, T-money’s share of the losses is estimated at around KRW 12 billion, making it the largest loss among its overseas ventures. The company noted that roughly KRW 4 billion of the losses were non-cash items, such as foreign exchange translation losses.
T-money had previously pursued aggressive global expansion under its “Vision 2020” strategy in the mid-2010s. However, with the closure of its U.S. business in 2016 and its Malaysia operations in 2023, the company has gradually scaled back its direct investment model. The divestment of the Mongolian unit is seen as effectively concluding its overseas direct operation strategy.
The company is now shifting its focus toward system integration and consulting services. In Wellington, New Zealand, T-money is involved in building and operating railway fare systems, while in Bogotá, Colombia, it is providing consulting services for an integrated transport payment system.
Rather than establishing and operating local subsidiaries, T-money is repositioning itself as a technology provider and advisory partner in global transit solutions.
AlphaBIZ Kim SangJin(ceo@alphabiz.co.kr)
