10.11.2016

Hyundai Capital Europe receives Banking license

Hyundai Capital Europe is pushing its growth in the European market and is taking steps to found its own captive automotive bank, Hyundai Capital Bank Europe, ranging Kia Finance and Hyundai Finance. Its service encompasses automotive financing to leasing and insurance, firstly to Kia car dealers and buyers, and then later to those of Hyundai. In 2017, the company will start direct banking services. KPMG Rechtsanwaltsgesellschaft (KPMG Law) as well as the Frankfurt based law firm Schalast counseled Hyundai Capital Europe in terms of legal issues with regard to the banking license.

Establishing an automotive bank is strategically important for Hyundai and Kia car sales in Europe, which has been soaring recently, on top of the increasing need for banking and other financial services. In October 2016, the European Central Bank granted authorization to Hyundai Capital Europe to engage in bank business to provide financial services. Hyundai Capital Bank Europe is expected to start operations in the following weeks.

The circle of large automotive banks present in Germany has been extended with the founding of Hyundai Capital Bank Europe. The new financial services provider chose Germany as its destination because with the “European Passport” in hand, the company will be able to expand its services to other European countries in an easier way. In addition to Germany, the Frankfurt am Main-based Hyundai Capital Europe provides financial consultancy services to Hyundai and Kia in 13 other European markets. KPMG comprehensively advises Hyundai Capital Europe for the specific project during the establishment phase in the submission of their permission applications. Furthermore, KPMG represents Hyundai Capital Europe during the approval procedure vis-à-vis the German Supervisory Authority (BaFin) and the Auditing Association of German Banks.

Schalast advises Hyundai Capital on a regular basis, especially in connection and parallel to the BaFin application process. During the implementation phase two lawyers from Schalast, Philippe Woesch (project manager) and Alexander May, worked on site and supported the legal inhouse-team, Alexandra Nesselrodt and Andreas Gregor Erm.

Counsel

KPMG Law: Dr. Ulrich Keunecke (Quality Management, Frankfurt); Dr. Matthias Henke (Lead, Düsseldorf), Hans Christian Kaiser, (Düsseldorf, Banking, Corporate and Civil law), Maik Ringel (Data protection, Leipzig), Dr. Gerriet Rixen, Carl Heinen (Antitrust, Cologne), Jörg Hübner (Labour Law, Leipzig).

Schalast: Prof. Dr. Christoph Schalast; Dr. Andreas Walter (Banking; Lead); Philippe Woesch (Banking; project management); Alexander May (Banking); Alexander Gebhard (Banking Supervisory Law); Florian Frisse; Anne Baranowski (both IP, Media & Technology); Ramón Glaßl (Antitrust); Clemens Schalast, Stefanie Hübner (both Labour Law); Kristof Schnitzler, Sven Bösing (both Corporate).

Inhouse Recht: Alexandra Nesselrodt, Andreas Gregor Erm