KGM secures US$75 mln investment from China's Chery

KG Mobility, a South Korean automotive company, has announced it has secured a significant investment of US$75 million from China's Chery Automobile Co. This financial boost aims to bolster the future mobility business of KGM. The investment agreement, signed on Sunday, mandates KGM to issue convertible bonds, all of which will be acquired by Chery. Upon maturity, a conversion of the entire bond issuance into shares is anticipated, granting Chery approximately a 10 percent stake in KGM.

This substantial investment is rooted in the companies' strategic partnership, which was initiated in 2024. During this period, KGM and Chery have collaborated on developing innovative vehicles, exploring autonomous driving technologies, and creating software-defined vehicles (SDVs). The agreement also extends to the development of KGM's upcoming midsize sport utility vehicle (SUV), the SE10, set to launch in January.

Chery, recognized as China's leading passenger vehicle exporter, boasts a robust global footprint, particularly in Latin America, the Middle East, Eastern Europe, and parts of Southeast Asia. With its comprehensive global vehicle platforms and expansive supply chain, Chery's involvement is poised to bolster KGM's endeavors to expedite new model development and fortify its international market presence.