Global capital shifts into Korea's mobility sector

Offshore capital giants are eyeing South Korea's mobility service providers, betting on the industry’s growth potential and the value of data accumulated by mobility platforms.

According to industry sources Friday, Goldman Sachs is in talks with SK Square to acquire T Map Mobility, operator of the country's leading navigation service T Map with more than 15 million monthly active users.

SK Square, the largest shareholder of T Map Mobility, holds a 63.23 percent stake in the company. Goldman Sachs is expected to invest roughly 800 billion won ($598.2 million) to secure a controlling stake.

SK Square, however, is not expected to sell its entire holding and is reportedly considering continued cooperation with Goldman Sachs in new business areas, including artificial intelligence.

T Map Mobility was valued at 2.2 trillion won during a fundraising round in 2022. Its trove of mobility data is now seen as increasingly valuable as the industry moves toward autonomous driving, potentially adding to its appeal to investors.

Goldman Sachs has shown sustained interest in Korea's mobility sector. Last year, it teamed up with Korea-based private equity firm VIG Partners in an attempt to acquire a stake in Kakao Mobility. The deal fell through after Kakao opposed the transaction.

In another major deal, US-based private equity firm TPG agreed in August to acquire a 61.2 percent stake in Lotte Rental for 1.31 trillion won. The country's antitrust watchdog Fair Trade Commission approved the transaction in September.

Lotte Rental plans to appoint TPG-nominated directors at an extraordinary shareholders' meeting on Oct. 30, paving the way for the completion of the change in its largest shareholder.

The deal follows Hong Kong-based Affinity Equity Partners' withdrawal from its bid for Lotte Rental. Affinity had initially sought to acquire the company, but the FTC raised antitrust concerns because the private equity firm already owned SK Rent-a-Car, the country’s second-largest rental car operator.

TPG, which became Kakao Mobility’s second-largest shareholder after investing 500 billion won in 2017, could potentially explore synergies between the platform and its rental and used-car businesses, according to industry officials.