South Korea's Hyundai gets ECB approval to open bank in Europe

South Korean carmaker Hyundai Motor Group announced Monday that it received approval from the European Central Bank (ECB) to open a new bank in Europe to offer car financing.

The bank is expected to start operation in December and will be based in the German financial capital of Frankfurt, the carmaker's financing arm, Hyundai Capital Services, said.

The bank, to be known as Hyundai Capital Bank Europe (HCBE), is expected to be "a major booster for Hyundai and Kia car sales in Europe," the company said.

Hyundai Motors and Kia Motors together make up the fifth largest carmaker in the world.

The bank plans to offer "direct auto financing services - dealer financing, installment financing, lease, insurance brokerage and others - to consumers."

The ECB issued the new bank's licence on September 23 after "a deep review" by German financial authority BaFin.

The new bank will be created from Hyundai Capital Germany GmbH, which the South Koreans set up in 2010 with Santander Consumer Bank AG to provide car financing.

Hyundai is planning other banks in Spain, France and Italy, with the Frankfurt-based bank acting as European headquarters, a spokeswoman said.

Last update: Mon, 17/10/2016 - 14:24

More from Business

Croatian Postal Bank posts record net profit of HRK 147.5 mln

The Croatian Postal Bank (HPB)'s net profit in the first nine months of 2016 was 38.1% higher compared to the same...

Apple earnings down, iPhone sales decline

Apple's latest results, posted Tuesday, showed a drop in revenue and declining iPhone sales.

Adris Group's Jan-Sept net profit HRK 570 mln

In the first nine months of 2016 the Adris Group generated a net profit of HRK 570 million while its total revenue...

Podravka Group posts net profit of HRK 142.2 mn

The Podravka food and pharmaceuticals group generated a net profit of HRK 142.2 million in the first nine months of...

IKEA Croatia increases turnover by 5.8%

IKEA Croatia has generated HRK 567.7 million (without Value Added Tax) in turnover or 72.4 million euro in the 2016 ...