Shinhan Card Kazakhstan arm attracts $24 mn investment

Shinhan Finance, a subsidiary of South Korea's Shinhan Card in Kazakhstan, has attracted a 31 billion won ($24 million) investment from local car dealer Aster, according to the company announcement on Thursday.

Shinhan Finance will be a joint venture (JV) of Shinhan Card and Aster. 

Shinhan Finance will be a joint venture with an equity capital of 62 billion. Astor plans to acquire a 49.9% stake in the JV.

The move signifies Shinhan Finance's goal of becoming a prominent retail-specialized financial company in Kazakhstan's retail banking landscape.

Founded in November 2014, Shinhan Finance operates in Kazakhstan's key cities: Almaty, Astana, and Shymkent. It currently ranks fifth among over 230 retail loan providers in the country. It deals in retail lending products such as auto finance and credit loans.

Over the past three years, the firm has demonstrated growth, averaging a 55% annual increase.

As of the third quarter of 2023, it boasts 79.6 billion won in handled amounts and 145.7 billion won in total assets, placing it among the top five lenders in the region's retail lending market, out of over 230 competitors.

Write to Mi-Hyun Jo at mwise@hankyung.com