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Hyundai card, Hyundai Capital Company report english
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Hyundai Life
Hyundai Capital
Hyundai Card
Hyundai Com
mercial
Thinking about numbers
With Numbers
Contents
CEO’s Letter 02
History 06Redefining the financial industry
Location 10Hyundai Card, Life, Capital, and Commercial Korea and in abroad
Directors & Executives 18Innovative leadership in a systematic organization
Financial Highlights 24Financial performance in 2011 and robust financial health in assets
Products 36Well-structured product portfolio
Partnership 44Synergy from successful partnerships
Press Coverage 50Hyundai Card, Life, Capital and Commercial in the media
03CE
O’s Letter
With N
umbers
Hyundai Life
Hyundai Capital
Hyundai Card
Hyundai Com
mercial
“ We are obsessive about number. In order to earn good numbers, we run our company with disciplines.”
CEO’s Letter
At Hyundai Card, Hyundai Life, Hyundai Capital and Hyundai Commercial, we are obsessed with numbers. Numbers are a matter of life and death for any company - especially one in the financial sector. To achieve robust data, we have managed our company according to conservative principles while maintaining an acute sensitivity to the trends that are redefining our industries. Our rock-solid foundation in numbers have enabled us to invite global pop stars, world class orchestras and sports stars, take new steps in design and firmly ground our pioneering culture and work environment in Korea’s black-suited corporate world. In short, Hyundai’s ground-breaking innovation is founded upon our strength in numbers.
2011 was a challenging year. In Korea, disputes about merchant fees heightened while rising household debt resulted in a further loss of confidence in the financial industry. Tension intensified in both the credit card and capital markets as our competitors rearmed. In addition, the auto financing market became more cutthroat as retail and savings banks rushed in.
Looking beyond the turbulence of these crises, we focused on fortifying our fundamentals in financial services. As a result, Hyundai Card, Capital and Commercial earned a record KRW 1.7 trillion in combined operating incomes, up 10% from 2010 when excluding one-off earnings.
Without relying on external financing, Hyundai Card, Capital and Commercial all have sufficient operating capital for the next six months in terms of cash flow and credit lines. In addition, rather than in short-term, high-risk financial services, the majority of our assets lie in credit purchase and auto financing which guarantee long-term, stable revenues. I’m especially proud of how we were able to preserve dynamism in our businesses over the years while maintaining the industry’s lowest delinquency rate.
Hyundai Life
Hyundai Capital
Hyundai Card
Hyundai Com
mercial
CEO’s Letter
At Hyundai Card, Hyundai Life, Hyundai Capital and Hyundai Commercial, we are obsessed with numbers. Numbers are a matter of life and death for any company - especially one in the financial sector. To achieve robust data, we have managed our company according to conservative principles while maintaining an acute sensitivity to the trends that are redefining our industries. Our rock-solid foundation in numbers have enabled us to invite global pop stars, world class orchestras and sports stars, take new steps in design and firmly ground our pioneering culture and work environment in Korea’s black-suited corporate world. In short, Hyundai’s ground-breaking innovation is founded upon our strength in numbers.
2011 was a challenging year. In Korea, disputes about merchant fees heightened while rising household debt resulted in a further loss of confidence in the financial industry. Tension intensified in both the credit card and capital markets as our competitors rearmed. In addition, the auto financing market became more cutthroat as retail and savings banks rushed in.
Looking beyond the turbulence of these crises, we focused on fortifying our fundamentals in financial services. As a result, Hyundai Card, Capital and Commercial earned a record KRW 1.7 trillion in combined operating incomes, up 10% from 2010 when excluding one-off earnings.
Without relying on external financing, Hyundai Card, Capital and Commercial all have sufficient operating capital for the next six months in terms of cash flow and credit lines. In addition, rather than in short-term, high-risk financial services, the majority of our assets lie in credit purchase and auto financing which guarantee long-term, stable revenues. I’m especially proud of how we were able to preserve dynamism in our businesses over the years while maintaining the industry’s lowest delinquency rate.
As a financial company, our overriding concern is managing risk. There can be no loopholes or compromises in this. To sustain momentum, we have devoted our energies towards marketing, but only on the firm foundation provided by thorough risk management. Our goal is not to achieve stability, but sustainable growth. We found that scientific approaches to marketing can revitalize the market and its players and provide new experiences and positive value to consumers while simultaneously contributing to risk management. Marketing that targets specific customers can better accommodate customer needs while preventing costs incurred from defaulting accounts by securing high-value customers.
Our marketing strategies are deeply grounded in scientific research. Instead of relying on assumptions and trailing behind the needs of our customers, we take a preemptive approach. Success stories in marketing include our well-defined credit card portfolio from “M to ZERO” and MY BUSINESS, an integrated service solution providing not only capital, but also operational support to business owners.
The competencies of our group also lie in successful partnerships. In 2004, we established a solid partnership with GE that helped to strengthen our infrastructure by sharing corporate cultures and business know-how. In our overseas business, Hyundai Capital America recorded USD 200 million in net profit and has gradually secured its position as a major auto financing provider for American customers of Hyundai and Kia Motors. In Europe, we joined hands with the Consumer Finance sector of Europe’s largest bank Santander and established a joint company in the UK to expand our presence in the European market.
2012 will present even more difficult challenges. KRW 900 trillion in Korean household debt indicates that the business climate next year will be burdened by heavy regulation. However, as we have in the past, we will commit to our principles and find new growth opportunities by pioneering new markets.
This year, we welcomed a new addition to the Hyundai family: Hyundai Life. Now our retail-financing arm is complete with credit card and consumer finance, commercial financing services, and life insurance. The insurance market will provide endless growth engines and business opportunities. Moreover, we expect visible results in our overseas business initiatives in China and the UK. I’m confident that 2012 will be a year of innovation and new growth for us at Hyundai Card, Hyundai Life, Hyundai Capital and Hyundai Commercial.
Ted Chung
CEO: Hyundai Card; Hyundai Capital; Hyundai Commercial
Chairman of the Board: Hyundai Life
Hyundai Life
Hyundai Capital
Hyundai Card
Hyundai Com
mercial
History “ From Hyundai Auto Finance in 1993 to Hyundai Life in 2012, our history is one of growth.”
07H
istoryW
ith Num
bers
Hyundai Life
Hyundai Capital
Hyundai Card
Hyundai Com
mercial
09H
istoryW
ith Num
bers
1993 20051995
2006 2012
1999
2007
2001 2002 2003 2004
2011
06 |Launched Hyundai
Card Platinum 2 08| Hyundai Commercial
hits KRW 3 trillion in assets
10|Hyundai Card &
Hyundai Capital opened MY BUSINESS portal
11|Hyundai Card &
Hyundai Capital held MY BUSINESS Success Conference
|Hyundai Capital launched secured auto loan
|Hyundai Card launched Android Mobile Card
| Launched Hyundai Card ZERO
2010
03| Hyundai Commercial
was named Power Brand Company in the Lease Financing Category by Seoul Economic Daily
07|Hyundai Capital
launched Direct Loan 09|Hyundai Card &
Hyundai Capital opened corporate blog
11|Hyundai Card
launched Platinum 3 Series
| Hyundai Capital issued JPY 30 billion in Samurai bonds
| S&P upgraded Hyundai Capital’s credit rating to BBB+ (stable)
| Fitch upgraded Hyundai Card’s credit rating to BBB+ (stable)
12 |Hyundai
Commercial’s domestic credit rating upgraded to AA- (stable)
|Hyundai Card’s credit rating upgraded to AA+ by Korea Investor Service
2008
01|Hyundai Capital
secured KRW 1.65 trillion credit line
03|Hyundai Capital
ranked No. 1 in Korean Industrial Brand Power in the Capital Category by Korea Management Association Consulting
11| Hyundai Capital
issued USD 500 million in Yankee bonds
12| Japan’s largest credit
rating company JCR revised Hyundai Capital’s rating outlook to “stable”
| Hyundai Card ranked No. 1 in National Customer Satisfaction Index (NCSI) in the credit card category for fifth consecutive year in a row
| Hyundai Card received Korea’s Best Website Award
|Hyundai Capital launched used car leasing
01 | Hyundai Capital
introduced Plus Membership
|Hyundai Capital issued JPY 47 billion in Samurai bonds
03|Hyundai Capital
received AA1(Positive) rating from RAM
04|Hyundai Capital
issued USD 155 million in syndicated floating rate notes
09|Hyundai Capital
recorded one million used car financing customers
10 |Hyundai Card & Hyundai
Capital received consumer information protection certification (ISO 27001)
12 |Hyundai Capital
successfully raised KRW 185 billion in foreign capital
02| Launched Hyundai
Card the Purple
| Launched Hyundai Card’s service brand PRIVIA
|Hyundai Card was named Most Respected Company in Korea in the Credit Card Category by Korea Management Association Consulting
08|Opened Hyundai
Card-Hyundai Capital Finance Shop
12|Hyundai Card
Received BBB credit rating from S&P
04| Launched Hyundai
Card DIRECT 05| Established
Hyundai Life
01|Launched Hyundai
Capital’s Pro Volleyball Team Cheonan Hyundai Skywalkers
02| Launched Hyundai
Card the Black 08| Formation of
strategic alliance between Hyundai Card & GE Capital
09|Launched Hyundai
Capital’s Prime Mortgage Loan
10|Foundation of joint
venture between Hyundai Card and GE Capital
11|Hyundai Card
awarded Korean Finance Innovation Award
12|Launched Hyundai
Capital’s integrated personal financing brand Prime Loan
02 | Hyundai Card
awarded Korea Ethical Management Grand Prix in Cultural Management
03|Hyundai Commercial
established to take over industrial services from Hyundai Capital
04|Hyundai Card issued
USD 400 million in overseas bonds; first of its kind in Korea
06| Hyundai Capital
launched loan waiver program
08 | Hyundai Card
opened offline M-point Shop as the first of its kind in Korea
10|Hyundai Capital
opened used car financing portal Auto Inside
06| Hyundai Capital
launched Mortgage Loan
08| Formation of
strategic alliance between Hyundai Capital & GE Capital
09| Hyundai Card ranked
No. 1 in Service Quality Index by Korea Management Association Consulting
10|Foundation of joint
venture between Hyundai Capital and GE Capital
| Launched Hyundai Capital’s auto-leasing brand KlassAuto
|Launched Hyundai Capital’s installment financing brand Autoplan
|Hyundai Capital named No. 1 in installment financing by Korea Consumer Satisfaction Index (KCSI)
03|Launched Hyundai
Card M 11|Hyundai Capital
selected Best in Customer Service Innovation Category, Customer Satisfaction Management Awards by Korea Management Association Consulting
06|Hyundai Card
introduced Save Point System
10|Hyundai Capital
named No. 1 in Installment Financing by Korean Customer Satisfaction Index (KCSI)
04|Headquarters moved
to Yeouido 07|Hyundai Capital
launched auto leasing services
08| Hyundai Capital
acquired Diners Club, Inc.
10| Diners Club Card
changed name to Hyundai Card, Inc.
01|Company name
changed to Hyundai Capital Services, Inc.
04|Company name
changed to Hyundai Financial Services, Inc.
12|Founded as Hyundai
Auto Finance, Inc.
2009
Hyundai Life
Hyundai Capital
Hyundai Card
Hyundai Com
mercial
Location
11Location
With N
umbers
“ We started as a company headquartered in Yeouido, Seoul. Now you can find us all around the world.”
Hyundai Life
Hyundai Capital
Hyundai Card
Hyundai Com
mercial
13Location
With N
umbers
The National Assembly Building
National Assembly subway station Exit no. 1
National Assembly subway station Exit no. 2
Headquarters 1
Headquarters 2
Headquarters 3 (under construction)
Headquarters
200mThe National Assembly Building
Yeongdeungpo subway station
Boramae Park
National Assembly subway stationHeadquarters 2
Headquarters 1
Headquarters 3 (under construction)
Hyundai Life
Yeongdeungpo Office
Hyundai Life
Hyundai Capital
Hyundai Card
Hyundai Com
mercial
15Location
With N
umbers
Hongik University Office: Hyundai CardHyundai CapitalHyundai Commercial
Yangjae Offcie: Hyundai CardHyundai Capital
Suwon Office: Hyundai CardHyundai CapitalHyundai Commercial
Daejeon Office: Hyundai CardHyundai CapitalHyundai Commercial
Gwangju Office: Hyundai CardHyundai Capital
Daegu Office: Hyundai CardHyundai CapitalHyundai Commercial
Busan Office: Hyundai CardHyundai Capital
Ulsan Office: Hyundai CardHyundai CapitalHyundai Commercial
Yeongdeungpo Office: Hyundai CardHyundai Capital
Hannamdong Office: Hyundai Card
Seoul Auto Gallery: Hyundai Capital
Headquaters:Hyundai CardHyundai CapitalHyundai Commercial
Headquaters:Hyundai Life
Seoul Offices Regional Offices
Hyundai Life
Hyundai Capital
Hyundai Card
Hyundai Com
mercial
17Location
With N
umbers
Hyundai Capital provides financial consulting services for Hyundai and Kia Motors in Brazil
Hyundai Motor Brazil Montadora A-LTDA Av. Ibiraquera 2120, 3 Andor Bairro Indianopolis, CEP 04028-001 Sao Paulo, Brazil
HCA Atlanta Operating Center
7775 The Bluffs Suite A Austell, GA 30168, U.S.AHCA Dallas Operating Center
6100 W Plano Pkwy, Plano, TX , U.S.A
Hyundai Capital provides financial consulting services for Hyundai and Kia Motors in Australia
350 Parramatta Road Homebush NSW 2140, Sydney, Australia
Hyundai Capital America
3161 Michelson Drive, Irvine CA, 92612, U.S.A
HCA Irvine Operating Center
210 Commerce Irvine, CA 92602, U.S.A
Hyundai Capital, Hyundai Card& Hyundai Commercial Headquarters
3, Llisadangdae-ro, Yeongdeungpo-gu Seoul, Korea, 150-706
Hyundai Capital Beijing Representative Office
16F Guan Cheng Tower, Taiyanggongzhong Road, Chaoyang District, Beijing, China (100028)
Hyundai Capital New Delhi Representative Office
6th floor, Corporate One, Plot No. 5, Non-Hierarchical Commercial Centre,Jasolar, New Delhi 100 076, India
Hyundai Capital Germany GmbH
Theodor HeussAllee 11, 60486 Frankfrut am Main, Germany
Hyundai Capital Europe GmbH
Theodor HeussAllee 11, 60486 Frankfrut am Main, Germany
Hyundai Capital Russia LLC
Testovskaya 10, North Tower 15F, 123317, Moscow, Russia
Hyundai Capital UK Ltd.
3 Princess Way, Redhill, RH1 1SR, United Kingdom
Global Offices
Hyundai Life
Hyundai Capital
Hyundai Card
Hyundai Com
mercial
Directors & Executives
19D
irectors & E
xecutivesW
ith Num
bers
“ Hyundai Card, Life, Capital and Commercial are winning success and building a leading corporate culture with their systematic organization.”
Hyundai Capital
Hyundai Life
Hyundai Card
Ted ChungPresident
Hyun-Seok ShinDirector
Yoo-No HwangDirector
Yong-Bae LeeDirector
Ciaran BarrDirector
Chan-Woo JeongOutstanding Director, Audit Committee Member
Sang-Yong LeeOutstanding Director, Audit Committee Member
Sung-Tai HongOutstanding Director, Audit Committee Member
Xavier DurandOutstanding Director
Robert MorimotoOutstanding Director
Bhupesh GuptaOutstanding Director
Ted ChungChairman of the Board
Jin-Hwan ChoiPresident
Myung-Sik ChangDirector, Audit Committee Member
Byung-Chul ChoiDirector
Kyung-Yup KimOutstanding Director
Kwang-Woo ParkOutstanding Director
Ui-Myung ParkOutstanding Director
Sung-Pyo HongOutstanding Director
Ted ChungPresident
Byeong-Hee KimDirector
Won-Hee LeeDirector
Ju-Hyuk LeeDirector
Jwa-Jin ChoDirector
Directors Executives Directors DirectorsExecutives Executives
Hyundai Commercial
Directors Executives
Ted Chung CEO
Sung-Moon KimAuditor
Byeong-Hee Kim Executive Vice President | Vice President
Jwa-Jin ChoExecutive Vice President | Strategic Planning Division
Byung-Doo KimExecutive Vice President | Risk Management Division
Gun-Woo Kim Senior Vice President | IT Department
Ick-Jin Park Senior Vice President | Strategic Planning Division
Jeong-Hak Son Senior Vice President | Investment Financing Department
Kwan-Sun Ahn Vice President | Strategic Planning Department
Myong-Su Lee Vice President | Business Innovation Department
Byung-Sik Jang Vice President | Risk Management Department 1
Yeon-Woong Baek Vice President | Collections Department
Hwan-Jun Yang Vice President | IT Innovation Department
Byeong-Ku Jeon Vice President | Corporate Management Department
Kyu-Sik KimVice President | Business Legal Affairs Department
Kil-Ho JunVice President | Industrial Financing Department
Ki-Hwa Jang Vice President | Corporate Finance Department
Ted ChungPresident
Hyun-Seok ShinDirector
Won-Hee LeeDirector
Yong-Bae LeeDirector
Ciaran BarrDirector
Bernard van BunnikDirector
Matthew Richard SusserDirector
Woon-Chul JungAuditor
Ted ChungCEO
Ciaran BarrDeputy CEO | Financial Business Representative
Hyun-Seok ShinSenior Executive Vice President | Auto Business Division
Yoo-No HwangSenior Executive Vice President | Corporate Services Division
Won-Jong SangAdvisor
Woon-Chul JungAuditor
Byeong-Doo KimExecutive Vice President | Risk Management Division
Ju-Hyuk LeeExecutive Vice President | Financial Business Representative
Keun-Bae JungExecutive Vice President | Auto Business Division
Jwa-Jin ChoExecutive Vice President | Strategy Planning Division
Gun-Woo KimSenior Vice President | IT Division
Jung-In KimSenior Vice President | Operation Division
Jin-Tae KimSenior Vice President | Brand Division
Ted ChungCEO
Ciaran BarrDeputy CEO | Financial Business Representative
Hyun-Seok ShinSenior Executive Vice President | Auto Business Division
Yoo-No HwangSenior Executive Vice President | Corporate Services Division
Jung-Hoe KimAdvisor
Byeong-Doo KimExecutive Vice President | Risk Division
Suk-Joon WonExecutive Vice President | Marketing Division
Ju-Hyuk LeeExecutive Vice President | Financial Business Representative
Jin-Moon JungExecutive Vice President | Card Sales Division
Jwa-Jin ChoExecutive Vice President | Strategy Planning Division
Gun-Woo KimSenior Vice President | IT Division
Jung-In KimSenior Vice President | Operation Division
Jin-Tae KimSenior Vice President | Brand Division
Jin-Hwan Choi CEO
Myung-Sik Chang Auditor
Ho-Sung Suh Executive Vice President | Asset Management Division
Beom-Jin Kim Senior Vice President | Managing Division
Woo-Jin Lee Senior Vice President | Operation Division
Dae-Kyung Kim Senior Vice President | Sales Division
Chang-Geun Yang Vice President | IT Department
Joong-Il Kim Vice President | Asset Management Department
Jin-Bong Han Vice President | Corporate Service Department
Ick-Jin ParkSenior Vice President | Strategy Planning Division
Sang-Hyuk SuhSenior Vice President | Overseas Business Department
Eun-Gu JangSenior Vice President | Corporate Business Division
Sung-Won JinSenior Vice President | Cross-sell Business Department
Heather ValterisVice president | Finance Management Representative
Niclas NeglenVice President | Finance Representative
Gwi-Ho KangVice President | Auto Finance Department 2
In-Hwan KwakVice President | Collections Department
Dae-Kyoon KwonVice President | Corporate Services Division
Gyu-Sik KimVice President | Business Legal Affairs Department
Deok-Hwan KimVice President | Finance Planning Department
Sang-Woo KimVice President | Underwriting Department
Sung-Moon KimVice President | Audit Department
Soo-Kyung KimVice President | Corporate Management Department
Yoon-Tae KimVice President | Finance Division
In-Ju KimVice President | Yeongnam South Auto
Hyun-Joo KimVice President | Risk Representative
Hong-Kyun KimVice President | Beijing Representative Office
Soo-Jeong BaekVice President | Brand Department 1
Ick-Jin ParkSenior Vice President | Strategy Planning Division
Eun-Gu JangSenior Vice President | Corporate Business Division
Sung-Won JinSenior Vice President | Cross-sell Business Department
Dae-Kyoon KwonVice President | Corporate Services Division
Seong-Uk KwonVice President | Fee Business Department (Fee Biz)
Gyu-Sik KimVice President | Business Legal Affairs Department
Deok-Hwan KimVice President | Finance Planning Department
Sang-Woo KimVice President | Underwriting Department
Sung-Moon KimVice President | Audit Department
Yoon-Tae KimVice President | Finance Division
Chang-Han KimVice President | Jungbu Card Regional Headquarters
Soo-Jeong BaekVice President | Brand Department 1
Yeon-Woong BaekVice President | Collections Department
Dae-Geum Kang Vice President | Customer Support Department
Sean Park Vice President | TM Sales Department
Bo-Yoon Kang Vice President | Product R&D Department
Young-Wan Ko Vice President | Audit Department
Seung-Ryoung Kang Vice President | Seoul Headquarter
Myuoung-Joo Kang Vice President | DongBu Headquarter
Yeon-Woong BaekVice President | Collections Department
Kwan-Sun AhnVice President | Strategic Planning Department
Hwan-Jun YangVice President | IT Innovation Department
Joon OhVice President | Design Department
Hwan-Bin YongVice President | Finance Sales Department
Gyo-Chang LeeVice President | CS Department
Myong-Su LeeVice President | Business Innovation Department
Byung-Hui LeeVice President | Auto Finance Department 3
Yoon-Seok LeeVice President | Corporate Services Department
Joon-Suk LeeVice President | SME Business Department
Dai-Gyu LimVice President | Jungbu Auto Regional Headquarters
Byung-Sik JangVice President | Risk Management Department 1
Sung-Weon ChoiVice President | HR Department
Kwan-Sun AhnVice President | Strategic Planning Department
Hwan-Jun YangVice President | IT Innovation Department
Joon OhVice President | Design Department
Hwan-Bin YongVice President | Finance Sales Department
Gyo-Chang LeeVice President | CS Department
Myong-Su LeeVice President | Business Innovation Department
Mee-Yong LeeVice President | CLM Department
Yoon-Seok LeeVice President | Corporate Services Department
Joon-Suk LeeVice President | SME Business Department
Byung-Sik JangVice President | Risk Management Department 1
Sung-Weon ChoiVice President | HR Department
Yong-Teak HwangVice President | Marketing Department
Hyundai Life
Hyundai Capital
Hyundai Card
Hyundai Com
mercial
Financial Highlights
25Financial H
ighlightsW
ith Num
bers
“ Hyundai Card, Life, Capital and Commercial are stronger when facing the challenges. This is proven by the financial results.”
Hyundai Life
Hyundai Capital
Hyundai Card
Hyundai Com
mercial
These words of wisdom are grounded in a company that understands when it is time for growth and when it is time for security. Hyundai Card, Life, Capital, and Commercial have become icons of innovation and creativity in our industries. However, when it comes to risk management, we adhere to principles that are the most conservative among financial companies. Risk management must be run strictly by the book and allow zero margin for error. Effective risk management requires ongoing, consistent monitoring, not just in times of crisis. When a company initiates risk management only when crises emerge, such efforts will be insufficient in saving companies from harm.
At Hyundai Card, Life, Capital, and Commercial, we have a comprehensive risk management processes and systems. Compromising our CEO and executives from GE, Hyundai Card, Hyundai Capital, the risk management committee pulls the plug on unprofitable products that incite overzealous marketing.
From capital sourcing to credit and default rate management, we are thorough across all financial indicators in that we are able to operate our companies without external funding for the next six months. In addition, we are prepared to respond to any forthcoming financial crises with diversified sources of long-term borrowing, asset liability management, triple safety mechanisms to minimize risk exposure, and ethical sales practices against dumping.
The impending business climate is projected to be highly challenging with market decline, increasing household debt, and other potential crisis factors. In crisis preparation, we will invest more resources in further developing our risk management processes and execute close monitoring to respond to market shifts with speed and flexibility.
At Hyundai Card, Hyundai Life, Hyundai Capital, and Hyundai Commercial, our strategy for rapid growth is to focus on finance. We refer to our core competency as “financial engineering.” As a financial company, it is critical to secure stable, long-term profit to earn the trust of our customers and achieve sustainable growth.
In 2011, we achieved financial growth from the previous year while maintaining the best level of financial health in our industry with over KRW 1.1 trillion in operating profit. 2011 surpassed 2010 in terms of performance and set a model example for successfully achieving both growth and stability.
Backed by a robust financial performance and market share, Hyundai Capital is emerging as the market leader in new car installment plans and used car leases. Hyundai Card is solidifying its No. 2 position in the credit card market, boasting soundness in assets and strong loyalty among card members. In addition, Hyundai Commercial is dominating the industrial financing market as No. 1. In 2012, Green Cross Life Insurance was newly launched as Hyundai Life, generating high expectations for growth moving forward.
Our stable growth in profits was the result of our focus on fundamentals. Strong fundamentals allow for a much wider score of possibilities for future growth. If businesses pursue excessive expansion and obsess over short-term gains, they will soon crumble.
“ Finance is an art of discipline. A financial company must have self-restraint and know when to stop or else it will reach a cliff rather than a downhill slope. Finance is also an art of stop-loss.”
Finance is an art of discipline.
27Financial H
ighlightsW
ith Num
bers
Hyundai Life
Hyundai Capital
Hyundai Card
Hyundai Com
mercial
2011 Hyundai Card
Operating Income
Unit: In billions of KRW
2011 Hyundai Card
Assets Unit: In billions
of KRW
324
10,852
371
10,446
286
7,291
258
5,671
73
4,645
2011
2011
2010
2010
2009
2009
2008
2008
2007
2007
Operating Revenue
Operating Income
Net Income
Assets
Shareholders' Equity
2011
2,409
324
239
10,852
1,997
2009
1,841
286
213
7,291
1,483
2010
2,337
371
278
10,446
1,767
2008
1,594
258
202
5,671
1,234
2007
1,121
73
234
4,645
1,123
Unit: In billions of KRW
FinancialHighlights
Assets
Cash and Bank Deposits
Investment Financial Assets
Card Assets
Loans
Property and Equipment
Other Financial Assets
Other Non-Financial Assets
Liabilities
Borrowings
Retirement Benefit
Other Financial Liabilities
Other Non-Financial Liabilities
Shareholders' Equity
Share Capital
Capital Surplus
Retained Earnings
Reserves
Non-controlling Interest
2011 (17th)
10,851,933,716
863,054,403
1,766,970
9,374,266,682
469,647
187,398,080
144,007,180
280,970,754
8,855,250,685
7,071,760,496
17,774,550
1,291,498,924
474,216,715
1,996,683,031
802,326,430
57,704,444
1,148,396,656
(11,764,319)
19,820
2010 (16th)
10,446,113,805
820,178,772
1,776,386
9,005,768,456
992,292
152,515,808
124,568,967
340,313,124
8,679,464,372
7,176,172,090
9,608,547
1,033,192,395
460,491,340
1,766,649,433
802,326,430
57,704,444
909,749,074
(3,150,335)
19,820
Unit: In thousands of KRW
Hyundai Card
Unit: In thousands of KRW
Operating Revenue
Operating Expenses
Operating Income
Income before Income Tax
Income Tax Expense
Income for the Period
Other Comprehensive Income for the Period
Total Comprehensive Income for the Period
2011 (17th)
2,409,378,515
2,085,761,177
323,617,338
323,617,338
84,969,756
238,647,582
(8,613,984)
230,033,598
2010 (16th)
2,336,851,431
1,966,009,794
370,841,637
370,841,637
92,778,914
278,062,723
(40,673,472)
237,389,251
Consolidated Statements of Financial
Position
Consolidated Statements of
Comprehensive Income
29Financial H
ighlightsW
ith Num
bers
Hyundai Life
Hyundai Capital
Hyundai Card
Hyundai Com
mercial
5
3,438
5
2,988
17
2,499
-7
2,080
6
1,822
2011
2011
2010
2010
2009
2009
2008
2008
2007
2007
Operating Revenue
Operating Income
Net Income
Assets
Shareholders' Equity
2011
1,151
5
4
3,438
166
2009
890
17
15
2,499
146
2010
1,012
5
5
2,988
144
2008
741
-7
-11
2,080
103
2007
633
6
5
1,822
133
Unit: In billions of KRW
Assets
Cash and Deposit
Financial Assets at Fair Value through Profit or Loss
Available-for-sale Securities
Held-to-maturity Securities
Assets of Derivative Securities for Risk Aversion
Loans Receivable
Non-Financial Assets
Seperated Account Assets
Liabilities
Insurance Contract Liabilities
Investment Contract Liabilities
Policyholders Equity Adjustment
Liabilities at Fair Value through Profit or Loss
Assets of Derivative Securities for Risk Aversion
Borrowings
Other Financial Liabilities
Non-Financial Liabilities
Seperated Account Liabilities
Shareholders' Equity
Common Stock
Capital Surplus
Accumulated Other Comprehensive Income
and Expenses
Retained Earnings
2011 (9th)
3,438,235,364
740,354,840
71,736,496
1,212,990,576
0
0
1,056,009,222
235,844,305
121,299,926
3,272,196,600
3,048,185,256
0
14,815,892
0
0
35,000,000
20,462,366
30,485,226
123,247,860
166,038,764
98,273,150
44,573,571
4,756,965
18,435,078
2010 (8th)
2,987,729,641
124,259,620
84,321,799
618,815,681
999,203,131
0
788,319,712
243,624,283
129,185,414
2,843,504,324
2,585,722,351
0
7,335,289
17,756,297
40,261
35,000,000
33,690,050
28,076,720
135,883,356
144,225,317
98,273,150
44,573,571
289,731
1,088,866
Unit: In thousands of KRW
Hyundai Life
Unit: In thousands of KRW
Operating Revenue
Operating Expenses
Operating Income
Income before Income Tax
Income Tax Expense
Net Income
Other Comprehensive Income for the Period
Total Comprehensive Income for the Period
2011 (9th)
1,150,617,423
1,145,934,436
4,682,987
4,682,987
215,752
4,467,235
17,346,213
21,813,448
2010 (8th)
1,011,532,218
1,006,130,732
5,401,487
5,401,487
213,634
5,187,853
(2,700,217)
2,487,636
2011 Hyundai Life
Operating Income
Unit: In billions of KRW
2011 Hyundai Life
Assets Unit: In billions
of KRW
FinancialHighlights
Consolidated Statements of Financial
Position
Consolidated Statements of
Comprehensive Income
31Financial H
ighlightsW
ith Num
bers
Hyundai Life
Hyundai Capital
Hyundai Card
Hyundai Com
mercial
659
21,919
630
20,749
541
15,854
505
16,068
476
13,771
2011
2011
2010
2010
2009
2009
2008
2008
2007
2007
Operating Revenue
Operating Income
Net Income
Assets
Shareholders' Equity
2011
3,331
659
507
21,919
2,656
2009
2,989
541
411
15,854
2,156
2010
3,274
630
489
20,749
2,237
2008
4,330
505
377
16,068
1,650
2007
2,245
476
333
13,771
1,414
Unit: In billions of KRW
Hyundai Capital
Unit: In thousands of KRW
Operating Revenue
Operating Expenses
Operating Income
Non-operating Income
Non-operating Expenses
Income before Income Taxes
Income Tax Expense
Net Income
Other Comprehensive Income, Net of Income Taxes
Total Comprehensive Income
2011 (19th)
3,331,478,739
2,672,055,986
659,422,753
3,968,443
0
663,391,196
155,987,584
507,403,612
16,531,004
523,934,616
2010 (18th)
3,274,235,376
2,644,489,382
629,745,994
9,663,274
197,390
639,211,877
150,226,317
488,985,561
(61,901,469)
427,084,092
Assets
Cash and Deposits
Securities
Loans Receivable
Installment Financial Assets
Lease Receivables
Leased Assets
Property and Equipment
Other Assets
Liabilities
Borrowings
Other Liabilities
Shareholders' Equity
Common Stock
Capital Surplus
Accumulated Other Comprehensive Income
and Expenses
Retained Earnings
Non-controlling Interest
2011 (19th)
21,918,909,868
1,455,442,105
70,219,821
10,848,062,443
5,021,193,711
2,278,593,960
1,123,078,387
265,432,868
856,886,572
19,262,420,761
17,772,367,761
1,490,053,000
2,656,489,107
496,537,175
407,539,067
(50,840,571)
1,803,144,426
109,010
2010 (18th)
20,748,601,993
1,224,891,146
69,059,856
10,218,437,556
5,056,781,720
1,778,437,624
1,286,036,744
242,369,629
872,587,718
18,511,754,875
17,043,685,527
1,468,069,349
2,236,847,118
496,537,175
407,539,067
(67,371,575)
1,400,013,621
128,830
Unit: In thousands of KRW
2011 Hyundai Capital
Operating Income
Unit: In billions of KRW
2011 Hyundai Capital
Assets Unit: In billions
of KRW
FinancialHighlights
Consolidated Statements of Financial
Position
Consolidated Statements of
Comprehensive Income
33Financial H
ighlightsW
ith Num
bers
Hyundai Life
Hyundai Capital
Hyundai Card
Hyundai Com
mercial
86
3,467
57
2,720
28
1,629
14
1,127
10
861
2011
2011
2010
2010
2009
2009
2008
2008
2007
2007
Assets
Cash and Deposits
Securities
Loans Receivable
Installment Financial Assets
Lease Receivables
Property and Equipment
Other Assets
Liabilities
Borrowings
Other Liabilities
Shareholders' Equity
Common Stock
Capital Surplus
Accumulated Other Comprehensive
Income and Expenses
Retained Earnings
Non-controlling Interest
2011 (5th)
3,466,721,212
276,018,119
174,388,198
2,391,270,400
468,115,734
84,053,398
2,908,667
69,966,697
3,117,364,395
3,022,623,350
94,741,045
349,356,817
125,000,000
74,608,060
3,262,306
146,466,632
19,820
2010 (4th)
2,719,698,430
99,949,903
150,818,918
1,777,627,055
565,051,542
40,950,641
2,516,343
82,784,027
2,539,080,674
2,478,641,754
60,438,920
180,617,756
100,000,000
0
(862,281)
81,470,128
9,910
Unit: In thousands of KRW
Hyundai Commercial
Operating Revenue
Operating Income
Net Income
Assets
Shareholders' Equity
2011
324
86
73
3,467
349
2009
163
28
28
1,629
109
2010
236
57
57
2,720
181
2008
136
14
14
1,127
74
2007
58
10
8
861
70
Unit: In billions of KRW
Unit: In thousands of KRW
Operating Revenue
Operating Expenses
Operating Income
Non-operating Income
Non-operating Expenses
Income before Income Taxes
Income Tax Expense
Net Income
Other Comprehensive Income, Net of Income Taxes
Total Comprehensive Income
2011 (5th)
324,364,278
237,983,469
86,380,809
13,220,846
0
99,601,655
26,241,601
73,360,054
4,124,587
77,484,641
2010 (4th)
235,759,298
178,293,377
57,465,921
15,754,203
0
73,220,124
15,950,861
57,269,263
1,069,115
58,338,378
2011 Hyundai
Commercial Operating
Income Unit: In billions
of KRW
2011 Hyundai
Commercial Assets
Unit: In billions of KRW
FinancialHighlights
Consolidated Statements of Financial
Position
Consolidated Statements of
Comprehensive Income
35Financial H
ighlightsW
ith Num
bers
Hyundai Life
Hyundai Capital
Hyundai Card
Hyundai Com
mercial
Products Hyundai CardFrom Hyundai Card ZERO to the BlackThe first comprehensive brand portfolio in the credit card industry
Hyundai LifeA provider of reliable insurance products and services that customers can choose with confidence
Hyundai CapitalA leader in Korea’s consumer finance with a differentiated product line-up
Hyundai CommercialA reliable financial partner with optimized corporate finance products for corporate clients striving for success
37P
roductsW
ith Num
bers
Hyundai Life
Hyundai Capital
Hyundai Card
Hyundai Com
mercial
We have created many “first” products and services. These are the results of our persistent efforts to become market pioneers.
Our principle to maintain the top spot in the finance industry clearly differentiates Hyundai Capital from latecomers to the market. Hyundai Capital does not regard financial services as simply loans. At Hyundai Capital, our approach was to conceptualize financial products - such as car installment plans and leases - as brands. By branding intangible services, Hyundai Capital has earned the confidence of customers. In turn, our trust in our customers is also a point of differentiation. Hyundai Capital runs a Plus Membership system with various services such as providing consolation funds in cases of car accidents as well as installment waivers. In addition, Hyundai Capital refuses to remain content with its No.1 position and strives to provide new services to customers by developing innovative financial products such as used car installment plans and MY BUSINESS to support individual business owners.
Hyundai Commercial presents a new paradigm in corporate finance. With an optimal business line in corporate finance to satisfy the diverse needs of corporate clients, Hyundai Commercial has solidified its position as a market leader in commercial vehicle financing. Instead of convoluted insurance products, Hyundai Life offers insurance plans and services that are easily accessible to allow our customers to choose with confidence. Our scientific approach to product development and marketing does not rely merely on intuition, experience or market research. By closely observing our markets, Hyundai Card, Life, Capital, and Commercial are bringing changes to the market and to the rules of the game.
At Hyundai Card, Hyundai Life, Hyundai Capital, and Hyundai Commercial, it is our constant endeavor to redefine the financial industry; we believe a financial company can add value by offering new experiences to its customers. By newly defining goals for our industry, we were able to pursue more imaginative thinking and create infinite possibilities. Our products have become more detailed and refined, and our data-based approach to marketing has challenged industry standards.
Starting again from the ground up, we abandoned conventional assumptions about financial products and re-evaluated which kinds of products would be truly useful to our customers. Many of our products have been firsts in the industry, firsts in Korea and even firsts in the world. We did not create these precedents in order to show off; they reflect how the markets failed to prove products that fully met the needs of customers and how we succeeded in pioneering these markets with perseverance.
By launching Hyundai Card M, Hyundai Card brought a paradigm change in the credit card market, moving from a reliance on corporate branding to branding through individual products. With the launch of the Black, Hyundai Card introduced the concept of VVIP to Korea. Our “firsts” are the result of thinking first and foremost about our customers from the birth of Platinum 3 Series after close analysis of card member spending patterns to Hyundai Card DIRECT, a financial product with direct access. With our focus on customer needs, our product planning and launch preparation processes have been considered just as pioneering and innovative as our successful products in the market. In addition, we have a comprehensive product portfolio ranging from M to ZERO. Our brand strategy is the only approach in the industry offering a card portfolio that maximizes benefits by developing card products through card member segmentation.
39P
roductsW
ith Num
bers
Commercial Vehicle and Construction
Equipment Installment Plans
Corporate Loans Real Estate Financing
Private Equity Investment
Fixed Income Investment
Corporate Leasing Factoring Specialized HMC Group Products
Used Commercial Vehicle and Construction
Equipment Loans
Machine Equipment Leasing/Installment
Plans
Financial Services
Industrial Finance
Corporate Finance
Investment Finance
No. 1 in domestic commercial vehicle and construction equipment installment plans. The official installment plan for Hyundai and Kia Motors and Hyundai Heavy Industries
Loans for funds with credit rating/assets as collateral
Large-scale corporate loans for real estate development with future profits as collateral
Efficient method for securing working capital and capital for equipment & facility investment or corporate acquisition
Solution for financial needs for all stages of growth through systematic risk analysis
Financial product for facilities and equipment for start-up businesses and expansion
Trade bills or accounts receivables discounts
Customized corporate finance products for subcontractors of Hyundai Motor Group
Installment plan for corporate clients purchasing used commercial vehicles and construction equipment or in need of operating capital
Lease/installment plan for corporate clients in need of capital to purchase machine equipment
Specialized services for Hyundai Commercial clients
Hyundai Commercial
A Diners Privilege Service Card with access to all Diners Air Lounges around the world
A debit card for reasonable credit spending
A specialized service debit card for economic spending
Diners
C Point
C Discount
A premium card for business owners with powerful rewards and practical benefits
With multi-point benefits and platinum services, a platinum card for practical business owners
With upgraded benefits of the M and Korea’s best discounts in cars and gas, a premium card for business owners
A multi-point card for business owners with countless benefits from auto to cars, dining, air, and shopping
An auto lifestyle card for business owners with discounts for all gas stations and LPG charging stations
A debit card for business owners for reasonable credit spending
the Red
M2
M3
M
O
C Point
A new concept discount card with no conditions or limits
A cash-back card for anytime point accumulation and balance reduction
ZERO
DIRECT
The first ever VVIP card made exclusively for Korea’s top 0.05%
The most recognized VIP card for Korea’s top 5%
A premium card with powerful rewards and practical benefits
the Black
the Purple
the Red
Premium
With upgraded M benefits, Korea’s best discounts in cars and gas
With upgraded H benefits, Korea’s best discounts in family life
With upgraded R benefits, Korea’s best discounts in shopping
With upgraded T benefits, Korea’s best discounts in air and travel
With multi-point benefits and platinum services, a platinum card for practical users
A platinum card exclusively for women with M point benefits
A platinum card with Asiana Air mileage accumulation and platinum services
M3
H3
R3
T3
M2
M2 Lady
A2
A platinum card with Korean Air Mileage accumulation and platinum servicesK2
Platinum
A multi-point card with countless benefits from auto to cars, dining, air, and shopping
A card exclusively for women with discounts on shopping, beauty, and childcare on top of the benefits of M such as cars, gas and dining
A card with discounts for convenience stores, taxis and online shopping on top of discount chains and gas stations
A family lifestyle card with discounts for the entire family from academies, cell phone use, hospital and pharmacies
An auto lifestyle card with discounts for all gas stations and LPG charging stations
A card for shoppers with 10% of purchases accumulated in points for gift cards
A card for travelers with air mileage accumulation and travel benefits
M
M Lady
V
H
O
R
T
Alphabet
My BusINEss
Diners/Check
For card members with Platinum 2 or above, Hyundai Card’s Privilege Service with 10-20% on-site discount for over 700 luxury merchants such as hotels, top restaurants, cafes, beauty clinics, and spas
Hyundai Card’s exclusive service for cultural experiences and a luxury lifestyles
Hyundai Card Club Service
Hyundai Card PRIVIA
service
Basic
Hyundai Card
Auto Installment Plans
Used Car Loan
Direct Used Car Loan
Car Leasing
Long-Term Rental Car
Corporate Leasing and Rental Cars
Mortgage Loans
Bi-yearly Rental Loans
Auto Collateral Loans
PLUS+ Membership
Auto Inside
MY BUSINESS
Finance Shop
Auto Financing
Customer services
secured Loans
Credit Loans
Customized auto plan with terms chosen by customers
A reliable plan to finance used cars
An economical plan to purchase used cars with 5% discount in interest after DIRECT consultation
A comfortable lease plan with excellent management of cars
An economical and convenient plan to rent a car to suit your needs
An auto plan that takes into account time and cost cutting
A mortgage loan with a maximum limit of 85% of real estate prices
A rental loan providing up to 80% in held rental deposits
A fast, convenient loan with auto collateral
Customer finance protection service free of charge for Hyundai Capital Customers
A one-stop used car portal with used car listings, accident reports, pricing and auto financing information
Finance + Knowledge service for business owners
A customer space with easy access to Hyundai Card and Hyundai Capital’s financial services
A DIRECT credit loan without complicated paperwork or in-person consultations
A convenient credit loan with in-person consultations
Direct Loans
Prime Loan
Hyundai Capital
Life insurance plans for families to maintain financial stability in the case of death/accident
Health insurance plans to secure payment for treatment in the case of accident/illness
Pension plans to better prepare for economic stability and savings for the future
Investment plans for future savings
Insurance plans for children in case of accident/illness or for education/weddings
Insurance plans for corporations to provide workers’ welfare
Life Insurance (Universal)
Life Insurance (Dual)
Life Insurance (Silver)
Variable Life Insurance (Universal)
Term Insurance
Term Insurance (Income guaranteed)
Health Insurance
Cancer Insurance
Long-Term Care Policy
Critical Illness Insurance (Universal)
Variable Critical Illness Insurance (Universal)
Annuity Insurance
Variable Annuity Insurance
Pension Savings Insurance
Savings Insurance
Savings Insurance (Dual)
Variable Savings Insurance (Universal)
Child Health Insurance
Child Savings Insurance
Group Accident Insurance
Retirement Pension Insurance
Life/Term Insurance
Group/Corporate Insurance
Health/CI Insurance
Annuity Insurance
savings Insurance
Child Insurance
Hyundai Life
Hyundai Life
Hyundai Capital
Hyundai Card
Hyundai Com
mercial
Partnership “ By joining hands with the world’s best, we have developed our global capabilities to reach out to the world. ”
45P
artnershipW
ith Num
bers
Hyundai Life
Hyundai Capital
Hyundai Card
Hyundai Com
mercial
The partnerships entered into by Hyundai Card, Capital and Commercial are not limited to financial companies. We introduced magazines such as Martha Stewart Living and Monocle to Korean readers and continue to spread awareness about Korean cuisine and restaurants around the world through Zagat, the Bible of restaurant guides.
What kind of benefits would a partnership with a non-financial company bring? At Hyundai Card, Life, Capital and Commercial, we do not stop at providing financial services. Lifestyle is also a part of a larger category of financial services. Hyundai Card, Life, Capital and Commercial will never cease to think about bringing differentiated the experiences of sophisticated lifestyles to our customers.
Hyundai Capital and Hyundai Card successfully established strategic partnerships with global financial powerhouse GE Capital, a milestone towards entering the global market. Through joint ventures with GE, Hyundai Capital and Hyundai Card have gained a new competitive edge. Above all, GE brought our attention to the importance of compliance and corporate culture, especially in light of our efforts to overcome crisis and start anew. GE recognizes Hyundai Capital and Hyundai Card as its most successful joint venture partners. Beyond a simple business partnership, Hyundai Capital, Hyundai Card, and GE share a strong bond as role models for one another.
In addition to their long-term partnership with GE, Hyundai Capital and Hyundai Card also strengthened their alliance with Europe’s largest bank, Santander’s Consumer Finance. In 2009, starting in Germany, Hyundai Capital expanded throughout the European market with local ventures to handle auto-financing for Hyundai and Kia Motors by taking full advantage of Santander’s shared know-how. In 2011, Hyundai Card also joined hands with Santander by sharing marketing practices.
We extend our reach to overseas through working with leading partners
47P
artnershipW
ith Num
bers
Hyundai Life
Hyundai Capital
Hyundai Card
Hyundai Com
mercial
49P
artnershipW
ith Num
bers
Business Partnership : GE, SANTANdERBrand Partnership : MONOCLE, MoMA, MARTHA STEWART, TASCHEN, ZAGAT
2006.11 Opened exclusive online store MoMA
Korea after partnership with Hyundai Card (www.momaonlinestore.co.kr)
2008.11 Sponsored MoMA’s exhibition “Design:
Humble Masterpieces” in Korea
2009.02 Organised < Destination: Seoul>
with MoMA Retail to help domestic up-and-coming industrial designers to submit works to the international markets
2009.11 Sponsored <Bauhaus 1919-1933:
Workshops for Modernity> Exhibition in New York
2010.08 Launched three year partnership with
MoMA Internship program for Korean applicants: Opportunity to send nine interns each year
2010.09 Sponsored “Yeonghwa: Korean Film
Today” Film Festival in New York
2010.10 Sponsored <Abstract Expressionist New
York> Exhibition in New York
2010.10 <Hyundai Card Super Talk 01- Innovation
in Art> Lecture by Director of the MoMA Glenn Lowry and Chief Curator of Architecture and Design Barry Bergdoll
2011.07 Sponsored MoMA “Talk to Me” Exhibition
in New York
2011.11Hyundai Card-MoMA Curator Visit to Korea Program, Lecture by Paola Antonelli, Senior Curator, Department of Architecture and Design
2006.03 Introduced to the Korean market through exclusive partnership with Hyundai Card
2010.02 Published <Zagat Seoul Restaurants 2010>
2011.02Published <Zagat Seoul Restaurants 2011>
2012.02Published <Zagat Seoul Restaurants 2012>
2009.12 Exclusive publication of <Martha Stewart Living> in Korean
2011.06<Hyundai Card Super Talk 03 – Change Your Life> Lecture by Martha Stewart
2009.06Began domestic sales of Monocle through exclusive partnership with Hyundai Card
2010.04 Sponsored <Seoul: Monocle City Survey>
2011.04<Hyundai Card Super Talk 02 – Breaking the Trend, Making the Trend> - Lecture by Monocle Editor-in-chief Tyler Brûlé
2009.09
Establishment of Hyundai Capital Germany GmbH: joint venture between Hyundai Capital and Santander Consumer Finance
2010.05 Establishment of Hyundai Capital
Europe GmbH
2011.05 Establishment of partnership
between Hyundai Card and Santander
2011.12
Ceremony for the establishment of Hyundai Capital U.K. Ltd: joint venture between Hyundai Capital and Santander Consumer Finance
2004.08Strategic partnership between Hyundai Capital and GE Capital
2004.10Establishment of joint venture between Hyundai Capital and GE Capital
2005.08Strategic partnership between Hyundai Card and GE Capital
2005.10Establishment of joint venture by Hyundai Card and GE Capital
2006 GE Capital provided USD 600 million back-up credit line to Hyundai Capital
2007GE Capital provided USD 900 million in direct funding to Hyundai Capital
2009GE Capital increased its back-up credit line from USD 600 million to USD 1 bil (Total investment as of 4Q11: KRW 2.8 trillion)
2010 GE Capital provided USD 200 million back-up credit line (Total investment as of 4Q 11: KRW 741.2 billion) to Hyundai Card
2012 GE Capital extended its credit line to Hyundai Capital
2010.02Opening of <TASCHEN Online Book Store> after exclusive partnership with Hyundai Card
2010.08Opening of <TASCHEN Pop-up Store>
Hyundai Life
Hyundai Capital
Hyundai Card
Hyundai Com
mercial
Press Coverage
51P
ress CoverageW
ith Num
bers
“ Media articles on Hyundai Card, Life, Capital and Commercial. ”
53
12.15 / 2011
DATE
Joongang Ilbo
MEDIA
Hyundai Capital joins Hyundai Motor’s aggressive expansion in the u.K.Hyundai Capital established an auto financing joint venture with Santander in the U.K.
Hyundai Capital established Hyundai Capital U.K, with Europe’s largest bank, Santander, to provide auto financing for Hyundai and Kia Motors. Hyundai Motor Group and Santander are also expanding their partnership into several European markets.
The partnership aims to provide advanced auto financing for customers utilizing Santander’s strong network and know-how in Europe. Hyundai Capital’s support will contribute to Hyundai Motor Group’s continuing growth in the region.
55
12 / 2011
DATE
Forbes Korea
MEDIA
Install science and marketing into cards through alphabets, numbers and colorsHyundai Card’s innovative brand strategy
With ‘out of box’ thinking, Hyundai Card has become an icon of innovation in Korea. It completed a systematic product portfolio by building the three pillars of alphabets, numbers and colors. It created various cards which offer different benefits, lifestyles and
social status to its customers. The company doesn’t believe in customer surveys. Hyundai creates products which go beyond customers’ expectations and needs. Its brand image is an MIT guy in a Prada suit.
57
11.04 / 2011
DATE
Dong-a Ilbo
MEDIA
06.24 / 2011
DATE
Chosun Ilbo
MEDIA
Help small business create a smash success through comprehensive marketing support Hyundai Card & Hyundai Capital’s “My Business” service for small business
Unconventional thinking during the crisis opened foreign investors’ walletsHyundai Capital and Hyundai Card’s overseas bond issuance success story
As part of “My Business”, a comprehensive credit card and consumer finance service designed for small business, Hyundai Card & Hyundai Capital provide a popular report to their customers. By collaborating with a telecommunications provider
and governmental statistics agency, the companies offer in-depth market analysis on neighborhoods to small business owners. It gives smart tips to target customers and offers effective marketing tools.
When Hyundai Capital tried to hire a lead manager to issue its first bond in Japan in 2004, only one out of 10 banks returned the RFP because they didn’t think Hyundai Capital could raise money in Japan. Through steady IR activities which focus on a small number of large pension funds and by emphasizing supports from strong
shareholders, Hyundai and GE, the company has built a reputation overseas. With its diversified funding portfolio by product, maturity and region, the company has successfully issued bonds not only in Japan but also in Switzerland, Malaysia, and the U.S.
59
05.23 / 2011
DATE
The Korea Herald
MEDIA
04.27 / 2009
DATE
Business Week
MEDIA
61
09 / 2010
DATE
Finance Asia
MEDIA
Thinking beyond numbers
Without Numbers
CEO’s Letter 02
PRIDE - Corporate Culture 06The force behind corporate growth
EXPRESSION - Branding & Marketing 28Innovative thinking and methods to express us
EMPOWERMENT - Corporate Social Responsibility 56CSR through talent donation
Press Coverage 78Hyundai Card, Life, Capital, and Commercial in the media
Contents
03W
ithout Num
bers
CEO’s Letter
Numbers tell a clear story about a company. All figures such as market share, operating income, and rankings are conclusive. At first glance, a company will be evaluated according to such numeric indicators. At our companies, the top priority has been achieving robust numbers. As a result, in the space of ten years, our companies, previously fraught by a deficit of KRW 800 billion, transformed into healthy companies with KRW 1 trillion in operating income. However, it is important to emphasize that our improvement in financial health is not only quantitative, but also qualitative. We at Hyundai Card, Hyundai Life, Hyundai Capital and Hyundai Commercial, do not settle solely for achievements in numbers. Numbers are results, not goals. Our goal is not to achieve KRW 1 trillion in operating income. Our goal - our obsession - is to redefine the financial industry. If we had simply reduced costs by investing less in our employees and brands to increase profits and focused exclusively on businesses with high profit ratios, our numbers would not have been worthy of attention. We, at Hyundai, strive to achieve more than numbers. In order to redefine an industry that depends on numbers, we pursue qualitative differentiation. Our obsession over differentiation and producing something out of the ordinary is hard-wired into our corporate culture, bringing forth world-class cultural events such as Super Concert and Super Match. That is not the kind of feat possible in a company that focuses solely on financial figures. In 2011, Hyundai’s creative thinking thrived beyond numbers. Super Concert traveled to Busan in Korea’s southeast to extend the cultural benefits typically exclusive to metropolitan areas to regional districts. In addition to Super Concert, we launched our Culture Project to introduce new artists and performance genres and meet a wider range of cultural needs of our card members.
Numbers tell a clear story about a company. All figures such as market share, operating income, and rankings are conclusive. At first glance, a company will be evaluated according to such numeric indicators. At our companies, the top priority has been achieving robust numbers. As a result, in the space of ten years, our companies, previously fraught by a deficit of KRW 800 billion, transformed into healthy companies with KRW 1 trillion in operating income. However, it is important to emphasize that our improvement in financial health is not only quantitative, but also qualitative. We at Hyundai Card, Hyundai Life, Hyundai Capital and Hyundai Commercial, do not settle solely for achievements in numbers. Numbers are results, not goals. Our goal is not to achieve KRW 1 trillion in operating income. Our goal - our obsession - is to redefine the financial industry. If we had simply reduced costs by investing less in our employees and brands to increase profits and focused exclusively on businesses with high profit ratios, our numbers would not have been worthy of attention. We, at Hyundai, strive to achieve more than numbers. In order to redefine an industry that depends on numbers, we pursue qualitative differentiation. Our obsession over differentiation and producing something out of the ordinary is hard-wired into our corporate culture, bringing forth world-class cultural events such as Super Concert and Super Match. That is not the kind of feat possible in a company that focuses solely on financial figures. In 2011, Hyundai’s creative thinking thrived beyond numbers. Super Concert traveled to Busan in Korea’s southeast to extend the cultural benefits typically exclusive to metropolitan areas to regional districts. In addition to Super Concert, we launched our Culture Project to introduce new artists and performance genres and meet a wider range of cultural needs of our card members.
Our brand strategy also evolved. With the launch of Hyundai Card ZERO, we perfected our brand portfolio. Within our brand portfolio, every Hyundai credit card is categorized according to three elements or axes: a letter of the alphabet, a number, and a color. The letter on the card specifies the type of benefits. The number points to the size of the benefits. Lastly, the color of the card designates the level of prestige among our premium cards. The comprehensiveness of our portfolio was a groundbreaking brand strategy in Korea’s finance industry and is also studied by global players. At Hyundai, we strongly believe that good corporate citizens make a good company. We are deeply committed to corporate action and thinking about which core values are the most meaningful to those in need. Our mission in corporate social responsibility (CSR) can be expressed by the following proverb: "Give a man a fish and you feed him for a day. Teach a man to fish and you will feed him for a lifetime." We designed the Dream Project to help foster self-sufficiency among small business owners by redesigning their stores and marketing tools and have launched five stores through the project so far. In cultural philanthropy, we organize performances for students and graduates of Korea National University of Arts to donate their musical talent and play for child cancer patients. In addition, the Dream Education Program helps underprivileged youth learn new skills, get jobs and take their first steps as members of society. As such, Hyundai’s efforts in CSR cannot be assessed in terms of figures. Our innovative communication strategies also reflect thinking that extends beyond numbers. With access to diverse channels of information, consumers can no longer be won over by conventional ad campaigns that introduce new products. From business philosophies to employee traits and even fashion styles, consumers today are more interested in the inner workings of companies. At Hyundai, we strive to communicate our unique corporate identity of efficiency, simplicity and intuition by utilizing every channel available to us. Not only do products and services serve as means to reach consumers. Every aspect of our work environment - books, blogs, SNS, music, designs, our offices, our stationery and our work processes – are channels for communication, or rather, as we call at it Hyundai, “Expression.”
Above all, we are empowered by our corporate culture to think beyond numbers. Hyundai’s culture reflects our employees’ daily commitment to “redefining the financial industry.” Creating a workspace and mindspace that encourages employees to discover new things and innovate is central to achieving the numbers we want and challenging industry dogmas.It takes more than training for corporate culture to take root within a company. Employees must feel and experience it at every moment during their work day. At a time when we suffered operating losses, our approach was to foster corporate culture and awareness among employees through small, incremental changes in our work environment such as upgrading office facilities. It became evident that practicality prevails over deference in terms of effectiveness and that science and culture can create infinite synergies. Our aim to achieve beyond numbers encouraged diversity and liberal thinking on top of a strong sense of commitment to our principles. Hyundai’s ultimate goal is not to grow in size and profits, but to change the rules of the market and develop into a financial company that provides value to our customers and their communities. This goal drives us to think beyond the present. Our desire for innovation and creativity places our focus on the future. All of us - at Hyundai Card, Life, Capital and Commercial - are excited by thinking that surpasses numbers. It is what gets us one step further each day.
CEO’s Letter
Ted Chung
CEO: Hyundai Card; Hyundai Capital; Hyundai Commercial
Chairman of the Board: Hyundai Life
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The key to our success is our creative, ground-breaking corporate culture.
There are many ways to measure a company’s competitiveness. Quantitative data, such as the numbers of employees, performance standards, and market share, are pretty self-evident. When it comes to figures, there is no question that Hyundai Card, Hyundai Life, Hyundai Capital and Hyundai Commercial are highly competitive companies. However, our true competitiveness lies in our corporate culture.
For us, corporate culture is not something that can be orchestrated overnight by companies to draw attention. We have long believed that corporate culture is the driving force behind success even from the very beginning when our companies suffered shared deficit of KRW 80 billion ten years ago. Since then, we have spared no expense in fostering awareness among employees about the importance of corporate culture and bringing change to the way we work.
Corporate culture is not merely a slogan. We conceptualize corporate culture as something reflected in the values of our company and how we confront our work on a daily basis. It takes more than shouting “innovation” and “creativity” to develop products and services that are truly innovative and creative. The first step is to set up a work environment and an organizational culture that allows for innovative and creative thinking.
Our office environment at Hyundai Card, Life, Capital and Commercial is a direct example of our corporate culture. We have come across so many people who are amazed by and envious of our offices not simply because our interior design is modern and sleek, but because they can sense a strategic and consistent design concept permeating the space the moment they enter. With our eyes on strategy and consistency, we have striven convey our corporate culture in the most visual and intuitive way to ensure our employees feel and live it throughout their day.
Above all, the reason we value corporate culture at Hyundai Card, Life, Capital and Commercial is pride. Our ultimate goal is to become a company that our employees can be truly proud of, and we aim to accomplish this through corporate culture. Without pride, there can be no passion, without passion, there can be no development. Hyundai Card, Life, Capital and Commercial will continue to invest wholeheartedly in corporate culture for the pride of our employees. We are confident that the synergies among our passionate employees provides the strongest formula for success.
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Pride is our source of passion at Hyundai Card, Life, Capital and Commercial
Employees with pride are guided by a strong sense of moral duty. At Hyundai Card, Life, Capital and Commercial, our moral duty is defined by the Zero Tolerance Policy (Z.T.P) that includes Client Information Protection, Transparency in Vendor Relations, Sexual Harassment Prevention, and Cartel Prevention. Regardless of seniority and title, any employee who fails to abide by these core policies must leave the company. The strongest force behind Z.T.P is the motivation of our employees who strive to build a company of exceptional corporate governance, trust, and transparency.
Nothing about our corporate culture at Hyundai Card, Life, Capital and Commercial is habitual or rigid. For instance, we discourage habit formation in the meeting room; for every meeting, each employee sit where they want. Furthermore, to foster a free environment for discussion, our CEO sits on the side rather than in the middle. Employees are also discouraged from taking notes verbatim, especially when taking direction from their bosses. Bringing change to the smallest details and breaking habits can result in new ways of thinking that can redefine corporate culture. We have also brought change in how we evaluate performance by replacing the Key Performance Index (KPI), widely used in our industry for a lack of a better alternative. Instead, we have adopted a qualitative performance standard, paving the way for innovation and creativity.
At Hyundai Card, Life, Capital and Commercial, we were able to accomplish much in a short period of time. This is the result of our strategy to devote more resources to a single employee and his or her passion rather than producing a good TV ad. Our most valuable asset is our employees. Only with passion can employees produce solid numbers and success stories. Hyundai Card, Life, Capital and Commercial will remain focused on fostering a corporate culture of innovation and creativity to become a leading financial company trusted and respected by our employees and our loyal customers.
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Corporate Culture > Where We Work
Hyundai Card, Life, Capital and Commercial Workspace
Large Meeting Room The heated discussions and ideas that pour out of our meetings are the engines that drive Hyundai Card, Life, Capital and Commercial into the future
017 Large Meeting Room
018 Phone Booth | Café M | Design Lab | Auditorium | The Wailing Wall | HCA Offices in Irvine.
020 Idea Table | Idea Table at Ulsan | The Box | Print & Wash
022 Media Zone | Library
Where We Work
024 Market Place | Leadership Forum
026 MyD Card | Office Stationery
027 PRIDE Book
How We Work
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Phone Booth A phone booth for personal calls with soundproof walls to ensure privacy and respect
Auditorium With 108 seats, the auditorium is a multi-purpose space for performances, meetings, and lectures
The Wailing Wall The Wailing Wall broadcasts real-time customer complaints for our employees to lend an open ear to the voice of our customers
Café M A café for employees and visitors filled with chairs and other design items by Danish designer Verner Panton
Design Lab Where imagination becomes reality. Our design philosophy reflects our conscientious efforts to express our core values in the most straightforward way
Hyundai Capital America Offices in Irvine, CA Overseas offices also reflect our universal design values on top of local design features. At the Irvine office, the workspace and interior are modularized with colorful, high partitions
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The Idea Table In an open space with high ceilings, the Idea Table draws out creative thinking. Always at hand are rolls of paper and writing utensils to jot down ideas as they materialize
The Box The Box offers a healthy salad bar during lunchtime and transforms into a wine bar at night. With a self-explanatory name, The Box boasts a modern, chic interior design of rectangular glass walls on all four sides
The Idea Table at Ulsan Our local offices and headquarters share the same design identity and details. All offices have ivory white Idea Tables to spread out rolls of paper and red cabinets to store colorful writing. The ceiling décor of hanging books and light bulbs stimulates our imagination
Print & Wash Print & Wash offers color printing and book binding with a single click. At Print & Wash, employees can also get their dry cleaning done without having to worrying about whether their local dry cleaners will be open
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Library This library holds more than ten thousand books and other information resources in addition to domestic and foreign newspapers and periodicals. Employees can make purchase requests, which are all processed and fulfilled. All resources can be searched via catalog and are available for delivery
The Media ZoneA space for storytelling: transformation and innovation
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Leadership ForumA forum to present and share best practices within the company as model cases of innovation. All best practices presented during the forum are distributed throughout the company and applied in each department
Market PlaceEvery second Thursday of the month, executives from all departments come together in the convention hall with their laptops and paperwork to freely discuss various business plans with one another
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Corporate Culture > How We Work
MyD | Office Stationery
Corporate Culture > How We Work
PRIDE Book
PRIDE, The 50 Ways of Hyundai Card. A book about the corporate culture of Hyundai Card, Capital, and Commercial and our way of getting things done. Under three themes work ethics, work style and business manners - the book explains 50 ways we work
Design motive inspired by traditional identity medallions from the Joseon period
Our desk is our brand. All office stationery is created exclusively by Hyundai’s very own designers for uniformity in look & feel
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We think about marketing and branding for all facets of consumer experience.
At Hyundai Card, Hyundai Life, Hyundai Capital and Hyundai Commercial, we have accomplished what no other financial company has been able to, or even been thought to be able to achieve. With events like Super Concert and partnerships with world-class brands, our innovative and unique marketing strategy has been hailed as a powerhouse of marketing and branding.
Our success in marketing strategies is rooted in our ability to understand rapid changes in consumer needs and pioneer the financial industry. Consumers are no longer concerned with individual products. They are interested in corporate strategy and vision. In the past, companies were lauded as leaders in marketing with a single, successful ad campaign. Nowadays, successful marketing requires stories that penetrate through the heart of products and meld with corporate vision and strategy.
Developed under the philosophy, “The best we can offer our members is exceptional experiences,” our marketing strategy is to narrate our story behind individual products, services like PRIVIA, MoMA and MY BUSINESS, and initiatives such as the Super Series. These stories stimulate the curiosity and interests of our consumers. Our identity is exemplified through our ground-breaking approach to marketing and branding; this is how we are different and how we must differ from other companies. In addition to marketing/branding, consumers wish to learn the story behind our corporate vision, encompassing our products and services, our CI and even our offices. With the development of direct, multidirectional channels such as the Internet and SNS, it is impossible to keep our stories within the boundaries of our company. Amid these environmental changes, Hyundai Card, Life, Capital and Commercial aim to redefine corporate communication strategies under the term, “Expression.”
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We build our brand through “Expression” with consistency and harmony.
At Hyundai Card, Life, Capital, and Commercial, our “Expression” starts small. Developed exclusively by our designers, our very own typography Youandi is used consistently throughout our corporate material. Comprised of our CI and BI, the use of our corporate logo is strictly regulated by rules for precision in measurement, spacing and angle. Our font and logo are applied throughout our card products, card bills, flyers and the walls of our offices only after a rigorous inspection process.
Expression” does not stop there; “Expression” encompasses SNS communication channels such as Twitter and Facebook and projects like the PRIDE Book containing our corporate culture and our member newsletter, The Modern Times. Hyundai Card’s services and events are also a core part of “Expression.”
Our loyal members live the Hyundai Card experience through events such as Super Concert and Super Match; Seoul’s best restaurants recommended by Zagat; and global trends are introduced by Monocle. These experiences are not episodic cultural marketing initiatives. These long-term campaigns capture our corporate identity beyond the visual, stimulating the ears, the taste buds and the physicality of our members.
As such, we have strategized to communicate our corporate identity by targeting all areas of Expression” with consistency. Our distinct corporate identity, “Distilled Functionality” as we call it, sets us apart from our competition. What we mean by “distilled” is that we strive for clarity, leaving only what is essential.
In the future, our members will encounter more and more of Hyundai Card, Life, Capital and Commercial in unexpected ways wherever they turn. This does not mean that more effort will be required on the part of our members to understand our corporate identity. On the contrary, our “Expression” will become even more precise and definite, and easier to identify and experience. We will never settle until our philosophy and corporate identity embrace all facets of life and culture.
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Super Talk 04Insight In, Creative Out
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Hyundai Card Product Portfolio
039 Hyundai Card Product Portfolio
040 Premium Cards: The Liquidmetal Series
042 it card
044 it card Pop-up Store
Products
046 Super Series & Culture Project
Events
048 House of the Purple
050 Air Lounge
Places
052 Modern Times
054 GS Ice Cup
055 it water
Experience
EXPRESSION
Our card portfolio has three pillars: alphabet for different kinds of benefits; numbers for different levels of benefits; colors for different status of premium cards
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Hyundai Card the Red
Hyundai Card the Purple
Hyundai Card the Black
Hyundai Card’s premium card line up is categorized by color: the Black launched in 2005 as Korea’s first VVIP card, the Purple and the Red. These premium cards are made with Liquidmetal - the strongest among existent alloys - to signify permanence and prestige
Premium Card Liquidmetal
Branding & Marketing > Products
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Branding & Marketing > Products
it card
Copper Brown Alexandria Green
Champagne Pink
Polaris Silver
Imperial Yellow
Paris Blue
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Hyundai Card launched it card for card members who wish to express their unique identity and style by creating their very own card plate design. Card members can choose from two plate materials, Hyper Duralumin and Liquidmetal, and from six different colors among Champagne Pink, Copper Brown, Alexandria Green, Polaris Silver, Imperial Yellow and Paris Blue
Located on Garosu Street in Southern Seoul’s Sinsa district, the it card Pop-up Store welcomes visitors to see it card samples and submit card applications in person. In addition to the it card, it card Pop-up Store offers an exhibition of color photographs depicting Hyundai Card’s brand identity as manifested in its wide range of products and services
Branding & Marketing > Products
it card Pop-up Store
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2011.01.11Sting
2011.05.25Maroon 5
2012.02.21Royal Concertgebouw & Chung, Myung-Hun
2012.06.27Lady Gaga
2005.09.19Maria Sharapova vs Venus Williams
2006.09.16Super Stars on Ice
2006.11.21Roger Federer vs Rafael Nadal
2007.11.20Roger Federer vs Pete Sampras
2008.07.19Super Stars on Ice
2009.07.31Super Class on Ice
2009.12.11Snow Board City Jump
2010.06.05Medalist On Ice
2010.10.02Novak Djokovic vs Andy Roddick
2011.11.26Dance Sports
Super Match
2010.01.18Green Day
2010.02.06Whitney Houston
2010.05.02Andrea Bocelli
2010.07.03Usher
2010.10.25Itzhak Perlman
2010.08.10Stevie Wonder
2007.01.26Il Divo
2007.11.9Beyonce
2008.11.15Billy Joel
2009.01.13Plácido Domingo
2009.08.19Craig David
2009.09.29Zubin Mehta & Sumi Jo
Super Concert
2010.10.19Innovation in Art
2011.04.12Breaking the Trend,Making the Trend
2011.06.14Change Your LifeMartha Stewart
2011.10.12Insight In, Creative Out
Super Talk
Branding & Marketing > Events
Super Series & Culture Project
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Branding & Marketing > Places
House of the Purple
Meticulously curated with tasteful, one-of-a-kind décor pieces and lush furnishings, the House of Purple is a modern lounge space created exclusively for the use of the Purple card members. Members can enjoy a quick bite or drink and curl up in a cozy corner to engage in conversation about culture or the arts
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Branding & Marketing > Places
Air Lounge
The Hyundai Card Air Lounge at Incheon Airport is a members-only air lounge for travelers to recharge before their flight and take advantage of Hyundai’s wide range of customized services for every kind of traveler. Designed as a modernist space with a functional layout, the Air Lounge was selected as a winner of the Institute Honor Award for Interior Architecture by the American Institute of Architects
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Branding & Marketing > Experience
The Modern Times
The Modern Times is a quarterly publication - the first of its kind in the financial industry - made for Hyundai Card members in a newspaper format with trend-focused content. Offering the latest news on lifestyle trends, The Modern Times is a must-read for Hyundai Card’s professional readership
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Branding & Marketing > Experience
GS Ice Cup
Branding & Marketing > Experience
it water
Created as a joint project with a major convenience store company GS25, GS Ice Cup is a thirst-quenching, summer beverage for urbanites on-the-go. Available for purchase with M-points, GS Ice Cup is a visually-innovative product with a modern design and catchy name
A bottled water to express Hyundai Card’s brand in a new and fresh way. Customers can experience Hyundai Card’s distilled identity by drinking ‘it water’ which is designed based on minimalism
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Dream store no. 3Bean Love, tofu store
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At Hyundai Card, Life, Capital, and Commercial, we consider corporate social responsibilityas an opportunity beyond donating and volunteering to do what we can do best.
Hyundai Card, Hyundai Life, Hyundai Capital and Hyundai Commercial have the largest and the only full-sized department dedicated to corporate social responsibility (CSR). Emerging as a leader in CSR, we approach CSR in a systematic way through innovative and creative initiatives, breaking the mold and writing new rules. Instead of conducting conventional, episodic events, we pursue CSR by finding areas in which we can optimize our strengths and abilities and truly commit to our initiatives. We focus on four main areas – Culture and Arts; Children and Youth Care; Neighborhood Business Support; and Innovative Contributions – under the principles of charity, freedom, and self-sufficiency. We strongly believe that culture and music can give hope to anyone even in the most dire circumstances. Through Art Stage, we visit child cancer wards and children’s welfare centers nationwide with Korea National University of the Arts. We put on music performances for patients and their families and provide cultural opportunities such as music recitals, theater visits, and traditional Korean arts performances for underprivileged children. In addition, Fun-filled Classroom is an art care program aiming to provide emotional support for child cancer patients enrolled in hospital schools and encouraging participants to pursue artistic talent.
One of our core goals is to help children and youth – the leaders of our future – overcome the limitations of their circumstances. Exciting Experiences is a program for children from underprivileged or dysfunctional families to experience a wide range of cultural events led by employee volunteers who help as teachers. Through SNU-Hyundai Card Mentor School, students from SNU donate their time and knowledge to tutoring middle and high school students from disadvantaged backgrounds, while we provide scholarship support in return.
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Instead of giving fish, we teach fishing to foster self-sufficiency.
In CSR, the most valuable role for financial companies is to help those in financial trouble to become self-sufficient and participate in the economy. While financial support may help many in finding opportunities towards financial independence, we strongly believe that teaching participants how to fish is more effective than simply giving fish. "Dream Project" and "Dream Education" are two core initiatives that represent this philosophy in CSR. "Dream" is a project with many success stories of neighborhood business owners in various business fields. "Dream Education" trains underprivileged youth in professional skills to encourage self-sufficiency. The Hyundai Motor Microcredit Foundation’s Learning Center also provides training and consulting to aspiring entrepreneurs and neighborhood business owners aiming to improve their businesses.
At Hyundai Card, Life, Capital and Commercial, we shun monetary donations in the form of envelopes and commemorative photos and volunteering without fun or meaning. We encourage our employees to design events that are truly fun for them in hopes that they will be able to commit wholeheartedly. For company-wide donation drives, we actively utilize storytelling to foster active participation and bring in families to enjoy the volunteering process while learning from such experiences. In addition, we donated our design capabilities to initiatives like Seoul Station Art Shelter, and Korea National Ballet's Limousine Bus to communicate meaningful messages in an emotional way. We were honored to be named Korea’s Leader in CSR as part of the 2011 Management Grand Awards by the Korean Management Association Consulting and recognized for our consistent CSR initiatives under our four main themes. At Hyundai Card, Life, Capital and Commercial, we will continue to challenge the corporate CSR paradigm by committing to our CSR goals with innovation and heart.
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EMPOWERMENT
072 Media Art Bus Shelter
074 Korea National Ballet – Limousine Bus Donation
Talent Donation
076 Seoul National University (SNU)-Hyundai Card Mentor School, Dream Education, Art Care, Give Book Campaign
Volunteering
067 Dream Store No. 1
068 Dream Store No. 2
069 Dream Store No. 3
070 Dream Store No. 4
071 Dream Store No. 5
Self-support
Corporate Social Responsibility > Self-support
Dream” is an ongoing project conducted by Hyundai Card and Hyundai Capital through the Hyundai Motor Microcredit Foundation's Learning Center. The project aims to help neighborhood business owners run successful, long-term businesses through sharing know-how and aiding in remodeling their business models and establishments. We
provide overall design support and consulting for all aspects of business including spatial planning for individual stores, branding, packaging, and marketing. Our efforts and achievements in Dream Project were recognized by the International Design Excellence Awards, one of the top three design award programs in the world.
“I learned that placing red fruit next to yellow fruit would help sell more fruit. I had no idea that a small change in design could influence
sales in such a big way. Our sales certainly improved.”
Before
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Dream Shop No.1 Sunlight Orchard, a fruit store
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Corporate Social Responsibility > Self-support
Dream Shop No.2 Long Legged Mister, snack bar
Before
After
Corporate Social Responsibility > Self-support
Dream Shop No.3 Bean Love, tofu store
“My views on running a business changed completely. Before, I thought the business was slow because there were no students.
‘Dream’ gave me hope and a vision for the future.”
“I came here with a dream of uncertainty and started out as a street vendor. I worked very hard, but was faced with many challenges
because I was a North Korean defector. It was my dream to have a store of my own, and ‘Dream’ made that dream comes true.”
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Corporate Social Responsibility > Self-support Corporate Social Responsibility > Self-support
Dream Shop No. 4 Sasha Hair, hair salon Dream Shop No.5 Dr. Bubble
“I had regulars and worked without a single day off for three years in my shop, but it was very difficult to bring in new customers.
Through the ‘Dream’ project, I relearned hairdressing and received business training for a fresh start for my hair salon.”
“Our business was in trouble. We were ready to give up before being selected for ‘Dream’. We know this is an opportunity
of a lifetime, and we are confident that we will succeed.”
Before
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Before
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A bus shelter donated to the city of Seoul and installed at the bus transfer center at Seoul Station to expand our talent donation in the field of public design. We transformed a bus transfer center into a site of public art through innovation in locative media
Corporate Social Responsibility > Talent Donation
Media Art Bus Shelter
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Corporate Social Responsibility > Talent Donation
Korea National Ballet
Limousine buses with Hyundai Card-designed exteriors donated by Hyundai Card and Hyundai Capital to help Korea National Ballet bring their “Traveling Ballet” to members of our community with limited access to ballet
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Corporate Social Responsibility > Volunteering
Volunteering
Dream Education Professional training for underprivileged youth, North Korean defectors, and child cancer survivors struggling for employment without access to educational opportunities. Planned by Hyundai Card and Hyundai Capital and conducted by Hyundai Motor Microcredit Foundation’s Learning Center
Give Book Campaign Donation of mini libraries with quality reading material for children of regional welfare centers with limited access to books
Art Care A program for student patients of National Cancer Center School to take part in arts education for psychological and emotional support and stress relief in conjunction with the Korean Association for Child Leukemia and Cancer
SNU - Hyundai Card Mentor SchoolSNU students donate their time and knowledge for middle and high school students and, in return, Hyundai Card offers academic scholarships to SNU volunteers who tutor key subjects and take part in cultural experiences with their students in a mentors
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Press Coverage “Media articles on Hyundai Card, Life, Capital and Commercial”
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DATE
Maeil Business Newspaper
MEDIA
“Put your identity” as a branding strategy for the age which values sincerity By personalizing the brand, Hyundai Card talks to customers through means beyond commercials
Companies can no longer rely on commercials to talk to their customers. There are many different ways for customers to experience the brand and Hyundai Card is pioneering new ways to express brand. From the way Hyundai headquarters is designed to the look of monthly card bills to the musical
performances it organizes, people feels a very consistent brand with distilled functionality. Hyundai Card’s identity is also reflected in its employees who pursue fast decision making and efficient meetings.
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“When you get tired of the word ‘design’ the concept of ‘un-design’ will prevail” Ted Chung shares how he makes new rules in financial companies
Hyundai Capital & Hyundai Card CEO Ted Chung is one of most popular executives on Twitter with over 56,000 followers. In his tweets, he shares forward looking corporate culture of Hyundai. The company has installed a ‘Wailing Wall’ at the staff restaurant
to display real time feeds of customer complaints. He also shares his thoughts on branding and design, which played an important role in making Hyundai Card Korea’s fastest growing credit card company and a culture icon.
01 / 2011
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Dong-A Business Review
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83
01 / 2011
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Dong-A Business Review
MEDIA
Not enough plates to serve food when my formerly deserted restaurant reopenedDream Project supports the self-employed by combining business and design
With Hyundai Microcredit Foundation, Hyundai Capital does more than providing cheap loans. Hyundai Capital and Hyundai Card support small business by sharing their expertise in marketing and design through "Dream Project". The project has helped a
snack bar, a fruit store and a tofu store to renew their stores and menus, which dramatically increased their sales. The project was internationally recognized by winning the service design category by IDEA.
07.07 / 2011
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Chosun Ilbo
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85
10.02 / 2010
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Chosun Ilbo
MEDIA
Discover innovative DNA and spread it out Yearly best practice meeting at Hyundai Card and Hyundai Capital
Best practice benchmarking is praised as one of keys of successful management. GE started sharing best practice internally, and Hyundai Capital and Hyundai card, also adopted the practice in 2006. The companies say handling out an award and
reward money for best practices doesn’t mean much. Instead, the companies push for heated discussion from participants to question the value of best practice in order to spark innovative energy through the sharing session
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08.02 / 2010
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Weekly Chosun
MEDIA
What’s so different at Hyundai Card? Government agencies, companies, universities, and even competitor KB card to visit Hyundai Card
Hyundai Card’s unique design and marketing are often cited as the force behind its success, Hyundai Card emphasizes that it was it people and innovative culture that put the company ahead of the competition. For instance, the career market, an online job posting
system, enables staff to go work for the department of their choice, and everyone is strongly encouraged to express different views regardless of their ranks. The company also openly solicits complaints from customers.
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08.02 / 2010
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Weekly Chosun
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91
07 / 2009
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Monocle
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93
07 / 2009
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Monocle
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95
10.25 / 2008
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International Herald Tribune
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97