English translation of the original Korean report. Images and source documents may contain Korean text.

Mercedes-Benz official dealer Hansung Motors (CEOs Bae Kyu-hwan and Kim Marco) is facing conflicting explanations from the company and internal notices regarding allegations that it demanded the use of a specific financial agency.

According to reporting by Newsfield and the head of the tip-off platform tip team on the 6th, an internal messenger notice contained content to the effect that sales representatives were required to proceed with financial contracts through the financial agency Watcar, and that contracts made through other companies would be difficult to process. The company maintains that there are no mandatory usage guidelines.

A financial agency is a company that connects customers purchasing vehicles with installment and lease financial companies.

According to the integrated inquiry system for financial product sales agents and brokers on the same day, Watcar Co., Ltd. is a registered company, and no confirmed violation history by financial companies has been found. Currently, there are 8 financial companies with ongoing contracts, including Mercedes-Benz Financial Services, KB Capital, and Hana Capital. If the notice was actually applied, it is possible that sales representatives faced restrictions in comparing or guiding customers on financial products through other financial agencies.

Hansung Motors stated in its official statement, “There are no internal regulations or guidelines that mandate the use of a specific financial agency.” It added, “We allow customers to use various financial products and financial agency services according to their situation and needs,” and explained that there has been no instance of sales representatives being disadvantaged for using other agencies.

No Explanation for Why Notice Was Issued

However, the official statement does not include why the notice was delivered, by whose instruction, or to which showroom it was applied. The reason for choosing Watcar and whether there was a commission transaction between the two companies are also not mentioned. The key issue is not whether there is a documented regulation, but how the sales floor actually operated.

Hansung Motors’ largest shareholder is Busan Investment, which holds a 51% stake, and the ultimate controlling company is Lei Shing Hong of Hong Kong. Lei Shing Hong has not disclosed its shareholder structure since its delisting in 2008 and is known to be led by the family of Chairman Lau Cho Kun, the founder’s nephew.

Lei Shing Hong also holds a 49% stake in Mercedes-Benz Korea and a 20% stake in Mercedes-Benz Financial Services through Star Auto Holdings. Watcar was not included in the list of related party transactions in Hansung Motors’ audit report last year.

The sales incentives paid by Mercedes-Benz Financial Services to Hansung Motors increased approximately 6.86 times from 483.32 million won in 2024 to 3.31485 billion won last year. This accounts for approximately 54% of Hansung Motors’ net profit of 6.1 billion won last year. However, a connection between the increase in sales incentives and financial contracts through Watcar has not been confirmed.