"Shining Brighter in Crisis"... Hyundai Capital's Risk Management Strategy

Building a Governance System to Organically Connect Overseas Subsidiaries

"Contingency Framework"... Turning Crisis into Opportunity for Growth

Annual "Global Risk Forum" as a Platform for Knowledge Exchange

Hyundai Capital is establishing a stable foundation for growth by organically connecting its global businesses based on its Global Governance Program (GGP) and crisis response system. Analysts note that the company's strategy of prioritizing a "resilient structure"—one that remains steady even in times of crisis, rather than simply pursuing expansion—has led to tangible results.

According to the financial industry on May 5, as of the end of last year, Hyundai Capital operated 19 subsidiaries in 14 countries, surpassing KRW 200 trillion in total global assets. Of this amount, overseas assets accounted for approximately KRW 159 trillion, more than 3.5 times its domestic assets. This scale exceeds the combined overseas assets of Korea’s four major financial holding companies.

Hyundai Capital proactively established its unique governance system, the GGP, alongside its global business expansion. The GGP distinctly separates authorities and responsibilities between headquarters and overseas subsidiaries and ensures that the same management principles and decision-making standards are applied across all entities worldwide. The GGP specifies and subdivides the roles and authorities of headquarters and local subsidiaries for 13 key functions—including finance, risk, sales, human resources, IT, legal affairs, and compliance. This enables Hyundai Capital to maintain a consistent global management system while simultaneously allowing agile local management tailored to each market’s characteristics.

In the overseas business of financial institutions, a systematic operating system that can reliably lead the entire global organization is a core differentiating factor. In this respect, Hyundai Capital’s GGP is evaluated as a core value system that goes beyond a simple internal regulation, organically linking overseas subsidiaries around the world.

Additionally, Hyundai Capital has advanced its "Contingency Framework" to enable swift and coordinated responses in crisis situations. Through this framework, potential crises are categorized based on macroeconomic and internal indicators, allowing the company to prepare customized, step-by-step countermeasures for each country’s market conditions. This ensures that overseas subsidiaries can make timely decisions and take effective action.

When the pandemic began to show signs of escalating into a global crisis, Hyundai Capital proactively mobilized a dedicated team at its Seoul headquarters to oversee sales, risk, and business management for all global subsidiaries. Furthermore, the company held frequent video conferences between key executives at headquarters and overseas subsidiaries, sharing real-time updates on market conditions in each country and coordinating response strategies to adapt to rapidly changing environments. On this basis, Hyundai Capital was able to meticulously manage liquidity and asset quality, revise the business strategies of each subsidiary, and ensure that its global network responded resiliently to emergencies despite market turmoil.

A Hyundai Capital representative stated, "Hyundai Capital holds a global risk forum every year to strengthen the cohesion of our global network and continuously enhance our crisis response capabilities. This forum, which brings together risk managers from headquarters and all overseas subsidiaries, serves as a platform for sharing knowledge and know-how to elevate the level of global risk management." The representative added, "The GGP, Contingency Framework, and Global Risk Forum—core governance and crisis management systems that connect our overseas subsidiaries organically—are the secrets behind Hyundai Capital’s unique approach to global risk management."

This content was produced with the assistance of AI translation services.