Hyundai Commercial teams up with Korea Investment Financial Group affiliates to expand corporate finance

Hyundai Commercial, which has roughly doubled its corporate finance assets over the past seven years, is joining forces with affiliates of Korea Investment Financial Group to accelerate further expansion. The two sides plan to broaden their business scope across corporate, real estate, non-performing loan (NPL) and infrastructure finance, collaborating at every stage from deal sourcing and fundraising to investment and portfolio management.

Hyundai Commercial announced Wednesday that it had signed MOUs on strategic partnerships in corporate finance with four Korea Investment Financial Group affiliates: Korea Investment Securities, Korea Investment Real Asset Management, Korea Investment Real Estate Trust and Korea Investment Private Equity. The signing ceremony was held Tuesday at Hyundai Commercial's headquarters in Yeouido, Seoul.

Through the partnership, the two sides plan to identify new business opportunities and diversify their portfolios across the full range of corporate finance — spanning corporate lending, real estate, NPLs and infrastructure — going beyond conventional loans and investments. They will cooperate throughout the entire corporate finance process, from deal sourcing and financial structuring to fundraising, investor recruitment, investment management and post-investment monitoring.

The partners will also establish a regular consultative body to share business intelligence and expertise in corporate finance, jointly identify new investment and financing opportunities, and diversify their revenue streams.

Hyundai Commercial has been rapidly expanding its corporate finance business in recent years. By increasing lending and investment in the corporate, real estate and NPL sectors, the company grew its corporate finance assets from about 2 trillion won ($1.49 billion) in 2018 to the 4 trillion won range last year, roughly doubling in size.

Total assets stood at 13.5 trillion won at the end of last year, up about 35 percent from 10 trillion won in 2021, while net profit for the period came to 226.1 billion won. Hyundai Commercial, which started out in industrial finance centered on commercial vehicles, has since expanded its business portfolio into corporate finance and investment banking.

"Korea Investment Financial Group is the only investment bank-centered financial holding company in Korea with a diversified portfolio spanning securities, asset management, private equity funds and real estate trust — and we believe it can generate strong synergies with Hyundai Commercial as we strengthen our corporate finance operations," a Hyundai Commercial official said. "We will pursue a wide range of collaborative initiatives through this strategic partnership."