Chery Drives Into Korea With $75M Bet
Synopsis
The investment in KG Mobility will support Chery's international growth strategy and future manufacturing partnerships.
Chery KG Mobility's US$75 million investment took a new turn after Chinese carmaker Chery Automobile pledged to inject the same amount into the South Korean company, KG Mobility Corp., via convertible bonds.
The deal, agreed in Seoul on Sunday, would allow Chery to gain around 10% of the company if the bonds are converted into equity, further cementing an alliance that has been gradually building over the past two years.
The investment is based on a technology licensing agreement announced in October 2024, in which the companies reach a consensus to develop new vehicles together based on Chery's technology platform.
The two firms announced the new deal will provide funding for their existing partnership in vehicle engineering, production and export.
Export Growth Shapes Cross-Border Strategy
The Chery KG Mobility 75-million dollar injection is part of China's car companies' growing efforts to expand their operations abroad. On the export front, Chery exported over 1.14 million vehicles, making it China's No.1 vehicle exporter in terms of export volume for the 22nd year in a row, with total 2025 sales of 2.6 million vehicles, data from Chery showed.
It also has growth prospects in exports, according to industry sources. China also remained the top vehicle exporter with 6.41 million vehicles shipped in 2025, according to the China Association of Automobile Manufacturers (CAAM).
Import clients included Russia, Mexico, the UAE, Belgium and Saudi Arabia, and manufacturers have kept growing their business throughout Europe, Southeast Asia, Latin America and the Middle East.
The deal is a sign of ongoing investment in manufacturing relationships across the Pacific Ocean by Australian and US automotive companies, which are spreading out production and technology sharing, and exporting.
KG Mobility Adds Strategic Investor
The investment will give KG Mobility extra capital, as well as a long-term strategic partner. Since becoming KG Mobility in 2023, the South Korean automaker has been working to revive its business with the introduction of new sport utility vehicles, exports and international alliances.
In 2025, KG Mobility reported revenue of KRW 3.94 trillion (US$2.9 billion), a sign of stable sales, which included increased export sales.
Chery said the investment will facilitate increased product development and manufacturing cooperation, and KG Mobility said it will enhance its international business and expand market access.
Source: Reuters
Pooja Malik is a business journalist with over six years of experience covering startups, entrepreneurship, and emerging trends. She has previously worked with leading media platforms such as YourStory Media and BW BusinessWorld, where she reported on business, policy, and market developments. Currently, she serves as Editor at The Inspirepreneur Magazine, where she writes and edits stories across business, lifestyle, and travel, with a focus on clarity, accuracy, and reader relevance.
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