Lotte Rental, KB Capital Signs MOU for Car Rental Business

Lotte Rental Co. and KB Capital have signed a memorandum of understanding (MOU) to collaborate on the car rental business. This partnership is a strategic move for both companies, as it will strengthen their respective businesses while expanding their customer bases.

Lotte Rental and KB Capital said they will work together on marketing, short-term rentals, and maintenance services. According to The Korea Economic Daily, under the agreement, the partners will roll out joint marketing campaigns for long and short-term car rentals to attract more customers. These campaigns will also cover maintenance services and vehicle repair.

Lotte Rental Integration Into KB Capital's Used Car Site

The financial company said it will add a dedicated Lotte Rental page on its KB Chachacha online used car platform. On the page, visitors will see various financial products that can be helpful when buying used vehicles.

The firms plan to explore other partnership opportunities and develop more financial products that can be linked to KB Capital's offline used car showrooms. At the end of the contract, Korea's Newspim reported that Lotte Rental would buy some of the rental cars for use in its used car rental, auction, and export businesses.

Strengthening Local Competitiveness

KB Capital and Lotte Rental will vigorously promote local vehicle services and rentals in South Korea. Through their cooperation, the companies can utilize each other's competitive business infrastructures to help them grow.

"Through our strategic partnership with Lotte Rental, we expect to be able to launch complex products that meet consumer needs such as providing automobile finance product benefits, expanding digital platform services, and providing infrastructure services to customers," an official at KB Capital said in a statement. "Both companies will continue to focus on customers in the future and to advance automobile business services, we will continue to strive to combine customized automobile financial and non-financial services and provide new experiences to customers."

Photo by: Lotte Rental Website