KGM accelerates global push through electrification and overseas partnerships

KG Mobility (KGM) is stepping up technology and capital partnerships with global companies as it pushes to establish itself as a full-fledged global automaker. Having moved past the phase of focusing on operational stabilization, the company is now building a new growth foundation centered on new model development, future mobility technology and overseas market expansion.

The shift comes as the global auto industry rapidly reorganizes around electrification, software-defined vehicles (SDV) and autonomous driving. KGM is pursuing international partnerships to sharpen its competitive edge in each of these areas.

According to industry sources Thursday, KGM signed a $75 million strategic investment agreement with Chery Automobile in August to strengthen future technology cooperation and partnership. The two companies' collaboration began with a platform license agreement in 2024, expanded into a joint development accord for mid- and large-size SUVs last year, and has now grown to include a capital investment this year.

The two sides are combining their respective expertise to accelerate new model development. The arrangement pairs KGM's product planning, design and vehicle development know-how with Chery's eco-friendly powertrain and global platform technology. The goal is to shorten development timelines, reduce costs and respond more nimbly to shifts in global markets.

The scope of cooperation extends well beyond joint vehicle development. The two companies are also pursuing collaboration in autonomous driving, SDV-based electrical and electronic architecture, robotics and semiconductors. A follow-on project targeting global markets is in preparation alongside the current joint development work, and the two sides have agreed to discuss co-investment in overseas production and business hubs. They plan to share each other's global production facilities, supply chains, and sales and service networks, and will examine specific investment structures in strategic markets where commercial viability has been confirmed.

Expanding its electrification portfolio is another pillar of KGM's growth strategy. The company has been rolling out hybrid models alongside its existing electric vehicles, broadening eco-friendly options across its core SUV lineup.

The first model was the Torres Hybrid, launched in March last year. KGM's debut hybrid, it features a parallel-series dual-motor "Dual Tech Hybrid System" and a hybrid-dedicated dual-motor transmission, the e-DHT. The vehicle is designed to switch between EV, HEV and engine-drive modes depending on driving conditions, and can run in EV mode for up to 94 percent of city driving.

The Actyon Hybrid followed in July of the same year, equipped with the same Dual Tech Hybrid System. It also offers up to 652 liters of luggage space, enhancing the practicality expected of an SUV. With the Actyon joining the Torres, KGM's hybrid SUV lineup has taken on meaningful scale.

Next-generation model development is also underway. KGM is preparing the SE10, a mid- to large-size SUV being jointly developed with Chery Automobile, along with other new models aimed at global markets. On the electric vehicle side, the company already operates the Torres EVX and the Musso EV, South Korea's first electric pickup. By extending its EV range from SUVs into pickups, KGM is deepening electrification across the vehicle segments where it has built its competitive strength.

KGM's expanded product lineup is feeding directly into its overseas business. Beyond finished-vehicle exports, the company is pursuing locally partnered production and sales arrangements and staging new model launches and test-drive events tailored to the characteristics of each regional market.

Most recently, KGM entered Myanmar. In August, the company held a brand launch event in Yangon with local automotive firm Super Seven Stars (SSS) Group, unveiling its electric vehicle lineup including the Torres EVX and Musso EV. SSS Group will handle local production and sales of those models going forward.

Building on the SSS Group partnership, KGM plans to supply a total of 1,000 vehicles to the Myanmar market this year. Starting with Myanmar, the company intends to roll out knockdown (KD) assembly operations sequentially in Saudi Arabia and Vietnam this year as well. The approach goes beyond finished-vehicle exports, establishing local production and sales infrastructure with regional partners to open new markets.

In established export markets, KGM is driving sales growth through new model launches, with the Musso at the center of a series of launch and test-drive events across Europe and Latin America. At the Musso global launch and test-drive event held in Turkey — KGM's largest export market — in April, more than 170 dealers, journalists and influencers from 31 countries across Europe, Latin America, Asia and the Middle East attended.

In June, KGM staged a Musso launch and test-drive event in Chile, a key pickup market in Latin America, and held a new model launch and test-drive event in Germany, where its European sales subsidiary is based. The company is simultaneously targeting the European market with its electrified models. At the German event, held alongside a global dealer conference, KGM showcased the Actyon Hybrid, Torres Hybrid and Musso EV to local journalists and influencers.

The overseas expansion and rising new model sales are showing up in the financial results. In the first half of this year, KGM sold 56,759 vehicles and posted, on a separate financial statement basis, sales of 2.32 trillion won ($1.71 billion), operating profit of 30.5 billion won and net profit for the period of 55.1 billion won. The company has now recorded a profit for four consecutive first-half periods since 2023.

Export growth was particularly striking. First-half exports reached 34,953 units, the highest first-half figure since 41,000 units in the first half of 2014 — a 12-year record. In June alone, KGM exported 8,345 vehicles, setting a new all-time monthly export record. Cumulative exports through August reached 40,454 units, surpassing the same period last year.