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FORBES ASIA MARCH 2020THE PROFILEstriction since 2016 on so-called shadow bank-
ing—from off-balance-sheet lending by banks to
corporate lending and peer-to-peer loans. While
the crackdown was meant to slow China’s rising
debt load, it has also starved small companies of
funding, driving them to traditional leasing com-
panies such as Chailease.
As China’s growth slows, defaults are rising and
interest rates falling, yet Koo is unfazed: rising de-
mand has helped it keep lending rates up even as
its funding costs fall. “Chailease is well positioned
to have strong bargaining power,” says Shih. And
delinquencies, while rising 4% to NT$2.5 billion,
are still less than 2% of Chailease’s total exposure
in China. Indeed, Chailease default rates are low
by global standards. Chailease says its proprietary
model for managing credit risks—using its 40
years of data—helps it manage default risk. Koo’s
penchant for diversification is also key: not only
has Chailease managed to diversify geographical-
ly, it has spread its risk across various industries.
“No single sector represents more than 10% of its
portfolio,” says Hsu at Fitch.COURTESY OF CHAILEASE HOLDINGSNow with 50 sales offices in mainland China, Koo wants
to expand further, despite the U.S.-China trade war and
the coronavirus. He aims to more than double Chailease’s
footprint to 120 offices by 2030, and boost China’s share
of Chailease’s portfolio to as much as half. His niche: Chi-
na’s estimated 40 million small and midsized enterprises
(SMEs). “We work with companies in the middle of the sup-
ply chain,” Koo says.
Leasing is already growing fast in China: its $254 billion
leasing market in 2019 experienced 20% growth, but is still
equivalent to only 7% of total investment according to UK
consultancy White Clarke’s data in the 2020 World Leasing
Yearbook. Leasing in China has also been helped by a re-RENAISSANCE MAN
Aside from Chailease, Koo has a number
of privately held businesses, including
catering, hospitality and interior design.
He’s especially proud of his wine and beef
noodle businesses, both of which grew
out of his personal passions. “I love wine.
I’ve always enjoyed wine,” he says, and
has a collection of 50,000 bottles, which
he stores in cellars at home, office and
several other locations. That hobby ledhim to start Les Terroir de Chailease,
which imports fine wines from Argen-
tina, California and France to Taiwan. “I
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-
family favorite. “We were nominated
as one of the top 10 beef noodle shops
in Taiwan,” he says. He also sells frozen
versions of Chef Tang’s Five Treasure
Beef Noodle Soup, and has plans to
open branches overseas.
“I love the service industry,” says
Koo. Juggling these businesses with
Chailease is no problem, he says. “I’ve
always thought to myself, ‘Why do I
have to give up my passion for the ser-
vice industry to take on other responsi-
bilities?’ I can manage both.”A wine connoisseur, Koo has collected
roughly 50,000 bottles (bottom). In 2016,
he opened C.E.O. Beef Noodle (right) with
John Huang, CEO of Yellowstone Holding,
selling the Koo-family favorite.“‘Why do I have to give up my
passion for the service industry
to take on other responsibilities?’
I can manage both.”