April 26, 2024

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[THE INVESTOR] Mercedes-Benz’s financial unit is moving to expand its business in Korea, backed by the growing popularity of its cars, according to a local media report on Nov. 24. 

Mercedes-Benz Financial Services Korea earlier this month decided on a 30 billion won (US$27.60 million) capital increase by issuing 590,000 new shares at its extraordinary general meeting. The new stocks will increase operating funds to meet the growing demand for financing services on the rise of Mercedes-Benz vehicle sales, according to the firm. 

It also amended its article of incorporation to add a clause that allows the firm to acquire and manage account receivables of other companies. 


“The change in the article is part of the preparations for different business opportunities, as the size of our firm is growing,” a spokesperson of Mercedes-Benz Financial Services Korea told The Investor. “We are considering many options, but nothing has been decided.” 

Mercedes-Benz Financial Services, which provides financing and leasing for customers, posted 51.4 billion won in net income from January to September, up 50 percent from 33.1 billion won in the same period last year. 

Meanwhile, Mercedes-Benz sold a total 54,067 units in the first three quarters this year, up 40.1 percent on-year, thanks to the popularity of E-Class and SUVs. 

It is expected to become the best-selling brand in the imported car market this year, beating its rival BMW for two years in a row.

By Ahn Sung-mi (sahn@heraldcorp.com)