Kia President Song Ho-sung noted that although the business environment is challenging due to various external uncertainties, he aims to turn the crisis into an opportunity and continue the trend of improving results.

Song Ho-sung, the President of Kia, explains the operational direction of the electric vehicle dedicated factory at the 2024 Hyundai Motor Group New Year’s meeting held at the Kia Autoland Gwangmyeong factory in Gwangmyeong, Gyeonggi Province, on Jan. 3. /Courtesy of Kia

On the 4th, President Song expressed concerns through a letter to shareholders posted on the company’s website, stating, “The international trade order is reverting back to regionalism and nationalism and is being newly rearranged, while regulatory barriers, such as emission and fuel efficiency regulations, are also being strengthened.” He added, “These changes are expected to pose risk factors across the entire industry.”

President Song emphasized, “However, crises serve as opportunities for those who are prepared.” He explained that while the entire automobile industry experienced sales disruptions during the past COVID-19 situation, Kia actually expanded its market dominance through diversifying its sales models, enhancing production network flexibility, and quickly substituting its supply chain.

He reiterated, “The upcoming geopolitical changes and regulatory barriers will also serve as opportunities for Kia, who has secured competitiveness in eco-friendly vehicle models and agile and flexible business and production system restructuring capabilities, to expand its relative position in the market.”

President Song promised shareholders that he will improve results like last year, when notable achievements were made based on the expansion of the eco-friendly vehicle lineup and quality competitiveness. Last year, Kia's revenue amounted to 107.4 trillion won, a 7.7% increase year-over-year. Operating profit reached an all-time high of 12.7 trillion won, with an operating profit margin of 11.8%.

President Song stated, “Despite a conservative exchange rate assumption in response to intensified global market competition and external uncertainties, we forecast an operating profit of 12.4 trillion won and an operating profit margin of 11%,” and added, “We plan to maintain the industry’s highest levels of profitability and corporate value based on fundamental business competitiveness.”