SOUTH Korea’s Lotte Group will in May complete its acquisition of KT Rental, a major domestic company in the car rental sector, for about one trillion won (US$906 million) as part of its efforts to diversify its portfolio.
The auto rental company is being sold by KT Corp, South Korea’s second-largest mobile communications provider, which has been struggling financially in recent months.
Han Bo-young, a spokesman for Lotte, told TTG Asia e-Daily: “Considering recent consumption trends in Korea and overseas, we believe that the auto rental and sharing services will show high growth in the long run. We also expect it to create synergy with our diverse businesses, from retail to tourism and financial services.”
International and domestic travellers are prime targets for Lotte, which plans to dramatically increase its car rental outlets through its existing retail facilities, but the company also intends to tap into the growing trend for long-term car rental services among local residents.
The new venture will help make Lotte a more influential player in the inbound tourism market by providing a range of connected services for tourists.
It also has its eyes firmly on overseas markets. KT Rental and Lotte already have separate presence in Vietnam, Han pointed out, which creates more opportunities for collaboration in the future.