Seoul: KG Group said Tuesday it plans to integrate its automaking, financing and payment businesses to create a comprehensive mobility value chain following its acquisition of South Korea's largest used-car platform, K Car.
According to Yonhap News Agency, the South Korean conglomerate, whose businesses span mobility, chemicals, steel, financial services, and digital payments, unveiled the strategy as part of a broader road map aimed at enhancing corporate value and securing new growth drivers. Under the plan, KG Group will combine the capabilities of its automaking unit KG Mobility, K Car, payment platform operator KG Inicis, and financial services arm KG Financial to establish an integrated mobility ecosystem covering vehicle manufacturing, used-car sales, auto financing, and payment services.
The strategy follows KG Group's agreement in April to acquire a 72.2 percent controlling stake in K Car from private equity firm Hahn and Co. in a deal valued at approximately 550 billion won (US$361 million). The transaction is expected to be completed by the end of June. "The acquisition of K Car is not merely a business expansion but a key pillar of the group's future growth strategy," KG Group Chairman Kwak Jae-sun said during a press conference. "By connecting manufacturing, distribution, financing and payment services, we aim to create a new growth model and strengthen our competitiveness in global markets," he added.
The mobility strategy centers on KG Mobility, formerly SsangYong Motor Co., which was acquired by KG Group in 2022 as part of a court-led rehabilitation process and subsequently rebranded. During the conference, KG Mobility unveiled a growth road map that includes launching seven eco-friendly sport utility vehicle (SUV) models by 2030 and expanding its overseas presence through localized production and strategic partnerships. KG Mobility CEO Hwang Ki-young said the company plans to strengthen its footprint in the Middle East and Southeast Asia through its knock-down (KD) business, under which partially disassembled vehicle kits are shipped to overseas partners for local assembly. As part of the strategy, KG Mobility aims to sell more than 200,000 vehicles annually, generate over 10 trillion won in annual revenue, and achieve an operating profit margin of more than 5 percent.