Page 56 - Forbes - Asia (March 2020)

“‘Why do I have to give up my striction since 2016 on so-called shadow bank-
ing—from off-balance-sheet lending by banks to
passion for the service industry corporate lending and peer-to-peer loans. While
the crackdown was meant to slow China’s rising
to take on other responsibilities?’ debt load, it has also starved small companies of
54 funding, driving them to traditional leasing com-
I can manage both.” panies such as Chailease.
As China’s growth slows, defaults are rising and
OFILE interest rates falling, yet Koo is unfazed: rising de-
mand has helped it keep lending rates up even as
Now with 50 sales offices in mainland China, Koo wants
THE PR to expand further, despite the U.S.-China trade war and its funding costs fall. “Chailease is well positioned
to have strong bargaining power,” says Shih. And
the coronavirus. He aims to more than double Chailease’s
delinquencies, while rising 4% to NT$2.5 billion,
footprint to 120 offices by 2030, and boost China’s share are still less than 2% of Chailease’s total exposure
of Chailease’s portfolio to as much as half. His niche: Chi- in China. Indeed, Chailease default rates are low
na’s estimated 40 million small and midsized enterprises by global standards. Chailease says its proprietary
(SMEs). “We work with companies in the middle of the sup- model for managing credit risks—using its 40
ply chain,” Koo says. years of data—helps it manage default risk. Koo’s
Leasing is already growing fast in China: its $254 billion penchant for diversification is also key: not only
leasing market in 2019 experienced 20% growth, but is still has Chailease managed to diversify geographical-
equivalent to only 7% of total investment according to UK ly, it has spread its risk across various industries.
consultancy White Clarke’s data in the 2020 World Leasing “No single sector represents more than 10% of its
Yearbook. Leasing in China has also been helped by a re- portfolio,” says Hsu at Fitch.

A wine connoisseur, Koo has collected him to start Les Terroir de Chailease,
roughly 50,000 bottles (bottom). In 2016,
he opened C.E.O. Beef Noodle (right) with which imports fine wines from Argen-
John Huang, CEO of Yellowstone Holding, tina, California and France to Taiwan. “I
selling the Koo-family favorite.
don’t buy the wineries because that’s a
money-losing business,” he says.
Then there’s Taiwan’s national dish,
beef noodles. Koo was raised on a
recipe perfected by Koo family chef
Tang Wen-ghuan, which uses beef
shank braised for eight hours in 23
spices. In 2016, he opened C.E.O. Beef
Noodle, located near Taipei’s famous
skyscraper Taipei 101, to sell the Koo-
RENAISSANCE MAN family favorite. “We were nominated
as one of the top 10 beef noodle shops
in Taiwan,” he says. He also sells frozen
Aside from Chailease, Koo has a number versions of Chef Tang’s Five Treasure
of privately held businesses, including Beef Noodle Soup, and has plans to
catering, hospitality and interior design. open branches overseas.
He’s especially proud of his wine and beef “I love the service industry,” says
noodle businesses, both of which grew Koo. Juggling these businesses with
out of his personal passions. “I love wine. Chailease is no problem, he says. “I’ve COURTESY OF CHAILEASE HOLDINGS
I’ve always enjoyed wine,” he says, and always thought to myself, ‘Why do I
has a collection of 50,000 bottles, which have to give up my passion for the ser-
he stores in cellars at home, office and vice industry to take on other responsi-
several other locations. That hobby led bilities?’ I can manage both.”

F ORBES A SIA MAR CH 2020