KGM Commercial (hereinafter KGMC) succeeded in returning to the black.
KGM Commercial said on the 12th that it recorded 107.7 billion won in sales and 250 million won in operating profit in 2025, achieving a return to profitability. It is the result of company-wide management normalization and structural improvement strategies implemented since joining KG Group.
Since joining KG Group in November 2023, KGMC has made shifting to a profitability-focused management policy and restructuring its business a core task, and has been progressively implementing cost and cost structure improvements, securing financial stability, and strengthening internal controls and accountable management.
Since shortly after the acquisition, Kwak Jae-seon, chairman of KG Group, personally led and promoted strategic management innovation. Chairman Kwak reestablished KGMC as a core pillar of the group's commercial vehicle business and has led structural improvements based on clear direction and execution.
Chairman Kwak set profitability-focused business restructuring, expense and cost structure improvement, securing financial stability, and strengthening accountable management and internal controls, along with strengthening market responsiveness through product portfolio diversification, as the core tasks of management normalization.
In particular, by developing 9m·7m bus lineups, it sought to create new demand beyond the existing business structure centered on main vehicle classes and to reduce dependence on a single class·single market. Through this, it mitigated performance fluctuations due to market volatility and built a more stable revenue structure. This strategy aims not only at short-term sales expansion but at building a sustainable business structure that can flexibly respond to demand changes and market conditions, and in practice it served as a factor that simultaneously drove top-line growth and improved profitability.
As a result, KGMC escaped from sales of 38.3 billion won and an operating loss of 6.7 billion won in 2023, immediately after joining KG Group, recovered top-line growth to 92.7 billion won in 2024, and in 2025 recorded 303 units sold, returning to profitability for the first time in five years. This performance improvement is significant in that it represents structural results combining cost structure improvement, profitability-focused management, and vehicle-class diversification strategy, rather than mere top-line expansion.
KGMC is a subsidiary of KG Mobility (KGM), and this performance improvement is expected to positively contribute to KGM's consolidated performance stability and profitability improvement. In particular, the normalization of performance in the commercial vehicle sector is evaluated as a meaningful achievement in terms of diversifying KGM's business portfolio and strengthening financial soundness.
A KGMC official said, "The return to profitability in 2025 is an important milestone in management normalization," and said, "We will continue to solidify a stable revenue structure through strengthened quality competitiveness and expanded exports, and leap forward as a trusted manufacturer in the global market."
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