November 29, 2024

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From left: Lion Group Chief Business Development Officer Tony Oh, Hyundai Glovis Smart Innovation Division Leader Park Man-soo, Lion Group Board of Director Serena Cheng and Hyundai Glovis Global Biz Development Group Head Park Ji-hyun pose for a photo after signing a memorandum of understanding in Seoul on Wednesday. Hyundai Glovis

Hyundai Glovis, a logistics arm of Hyundai Motor Group, said Wednesday that it is entering the Malaysian logistics market in a strategic partnership with local logistic giant Lion Group, as part of efforts to expand its presence in Southeast Asia.

The two sides signed a memorandum of understanding, under which the Korean firm will apply its smart logistic solutions to enhance efficiency of Lion's logistics operations overall.

Established in 1930, Lion Group is one of the largest conglomerates in Asia with business operation spanning over retail, property development, mining, steel, agriculture and services sectors. The group also owns Parkson Department Store that operates 82 outlets in six countries.

Hyundai Glovis said its integrated logistics management system, which allows clients to save logistics costs through data analysis, also will be applied to Lion's e-commerce business.

The two firms agreed to start collaborating first on steel business, with Hyundai Glovis conducting consultations from early next year.

Through the partnership, the two sides will join forces to advance into neighboring ASEAN countries as well, leveraging Malaysia’s long-time position as a hub of maritime trade and logistics for its geographical advantage.

Hyundai Glovis has been pushing ahead with its business expansion in Southeast Asia in recent years. Earlier this year, the company established a local branch in Thailand following its Vietnam branch in 2019.

By Kim Da-sol (ddd@heraldcorp.com)