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| From left, Deutsch Motors CEO Kwon Hyuk-min, K bank CEO Suh Ho-sung and Charancha CEO Park Chang-woo pose for a photo after signing a memorandum of understanding in Deutsch Motors' service center in downtown Seoul, Tuesday. Courtesy of K bank |
By Lee Yeon-woo
Following its previous expansion into credit and mortgage loans, K bank is now entering the car loan market in collaboration with Deutsch Motors. This marks the first time an internet-only bank has taken such a step in Korea.
K bank announced on Wednesday that it has signed a memorandum of understanding with Deutsch Motors, a BMW car dealer in Korea, and its subsidiary Charancha, an online platform for trading used cars.
The collaborating companies are poised to develop an innovative service bridging finance and the automotive industry. They plan to establish a one-stop procedure that allows customers to search for used cars and attain approval for car loans simultaneously.
K bank explained that while car loans have traditionally been a major service of non-monetary institutions such as credit card companies, the entrance of the bank into this market as an internet-only bank has opened up new opportunities.
It added that through its convenient user interface and user experience, the convenience of customers can be enhanced. The bank also aims to lessen the burden of principal repayments with lower interest rates.
"We will demonstrate innovative services that our customers can tangibly experience, utilizing the combined capabilities and expertise of our three companies," said K bank CEO Suh Ho-sung.
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