Seoul: KG Mobility (KGM) announced on Monday that it has secured a $75 million investment from China's Chery Automobile Co. as part of its strategy to bolster its future mobility business. The investment will be made through the issuance of convertible bonds, which Chery will fully purchase. If Chery opts to convert the bonds into shares upon maturity, it is anticipated to gain an approximately 10 percent stake in the South Korean automotive company.

According to Yonhap News Agency, the investment is an extension of the strategic partnership established between KGM and Chery in 2024. The partnership has since seen both companies collaborate on new vehicle development, autonomous driving technologies, and software-defined vehicles (SDVs). In a move to further expand their collaboration, the two companies will focus on the SE10, KGM's upcoming midsize sport utility vehicle (SUV) set for launch in January.

Chery, recognized as China's largest passenger vehicle exporter, has secured a significant global presence, especially in regions like Latin America, the Middle East, Eastern Europe, and parts of Southeast Asia. The company's global vehicle platforms and extensive supply chain are expected to aid KGM in accelerating the development of new models and expanding its international business footprint.