Hyundai Construction Equipment has established a partnership with South-Korea based DGB Financial Group to offer financial services, which customers in Asia can use to buy construction equipment.

Both companies recently signed a Memorandum of Understanding on global financial businesses, attended by Kwon Ki-hyeong, executive vice president and CFO of Hyundai Construction Equipment; Oh Sung-ho, head of group strategy at DGB Financial Group; and Suh Jung-dong, CEO of DGB Capital. The signing ceremony was held at the DGB Financial Centre in Jung-gu, Seoul, South Korea.

Construction equipment is normally high-priced, with the average price of an excavator going close to 100 million won (approximately US$ 85,000), so many customers depend on financial services such as leases and installment payments.

Based on the agreement, the two companies plan to launch their first construction equipment leasing financial service in Cambodia soon this year, and expand related businesses throughout Asia.

Hyundai aims to increase sales in the Asian market where financial programmes are not yet advanced by linking the financial services to be developed jointly with DGB to equipment sales.

DGB Financial Group, which has been making efforts to expand its share of the Asian market, starting with Laos in 2016, and then Cambodia, Myanmar and Vietnam, also expects the agreement to further strengthen its business portfolio in Asia.