Hyosung signs contract in Mexico for ATMs

Hyosung Group Chair Cho Hyun-joon, left, and Mexico President Andres Manuel Lopez Obrador meet to discuss the Rural ATM Project at Los Pinos in Mexico City on Wednesday.[HYOSUNG GROUP]

Hyosung Group won a 203 billion won ($176 million) contract to supply 8,000 automated teller machines (ATMs) for a national welfare project in Mexico, the company said Thursday.

To discuss the deal and other potential business opportunities, Hyosung Group Chair Cho Hyun-joon went to Mexico to meet with President Andres Manuel Lopez Obrador on Wednesday.

The ATM contract was Cho’s doing, as he attended meetings with Mexican government officials since October 2018. The actual partnership was signed last September, a Hyosung spokesman said.

The “Rural ATM” project is a government-led initiative to install ATMs in rural areas, from which beneficiaries of financial welfare support can withdraw cash.

According to Hyosung, 17 percent of Mexico’s population, equivalent to 20 million people, receive government subsidies, but in many cases, they aren’t able to withdraw cash, as 75 percent of Mexico lacks financial infrastructure. The national project will allow others to withdraw cash from the ATMs.

Once installation is complete, the Korean company’s ATM share in Mexico will reach 15 percent, from the current 2 percent. The company is a domestic leader in ATMs, with a 60 percent market share. It has the No. 1 market share for ATMs in the United States, 46 percent in terms of the number of ATMs sold this year.

“The Rural ATM Project will be an opportunity for Hyosung Group not just in terms of business but also in fulfilling a company’s social responsibility,” said Cho during his meeting with the president. “I’ll make sure the project is completed without setbacks so our ATMs can contribute to improving the lives of those in need and to the system for Mexico’s welfare delivery.”

After expressing his thanks to President Obrador on the ATM deal, Cho expressed willingness to work with the Mexican government on establishing electricity infrastructure and renewable energy.

President Obrador said he wishes to meet again after successfully finishing the ATM project.

Cho repeated his ambitions to high-ranking government officials during his trip. The Mexican government is ramping up investments in oil, gas and power generation. The Hyosung chairman has been hands-on when it comes to the company’s global business, meeting with heads of state and top ranking officials since he took the company’s helm in 2017. The list includes Indian Prime Minister Narendra Modi and Vietnamese Prime Minister Nguyen Xuan Phuc.

BY SONG KYOUNG-SON [song.kyoungson@joongang.co.kr]