Sejong, January 26, 2026 — The Korean Fair Trade Commission (KFTC) has blocked private equity firm Affinity Equity Partners’ proposed acquisition of a controlling stake in Lotte Rental, citing concerns the deal would significantly restrict competition in Korea’s rent-a-car market and lead to higher prices.
The KFTC said it prohibited the transaction after concluding there was a high risk of substantial harm to competition, particularly through potential price increases in the domestic rental car sector.
Merger Details
Under the proposed transaction, an Affinity-controlled special purpose vehicle, Carina Transportation Group Limited, would acquire 63.5% of Lotte Rental Co. The merger filing was submitted on March 18, 2025, according to the KFTC.
Affinity already acquired SK Rent-a-Car in August 2024, meaning the deal would effectively place Korea’s top two rent-a-car operators — Lotte Rental and SK Rent-a-Car — under the same ownership and control.
Competition Concerns
The KFTC described the transaction as a combination of the largest rivals in the Korean rent-a-car market, prompting a detailed review.
The authority said its assessment included collecting views from multiple competitors and customers, as well as conducting extensive economic analysis based on a broad consumer survey of rent-a-car users.
