KG Group has acquired K Car, the largest directly managed used-car platform corporations in Korea. Through this, it plans to build an integrated mobility ecosystem that spans automobile manufacturing, distribution, and information technology (IT) platforms, and to secure a foundation for sustainable growth.
KG Steel said on the 1st that it signed a contract on the 31st of last month with Hahn & Company Auto Holdings to acquire K Car. It will purchase 35,245,670 common shares of K Car (a 72.19% stake) for about 550 billion won. The acquisition will be carried out as a co-investment with Cactus Private Equity (PE).
K Car is the No. 1 directly managed used-car platform in Korea, with 48 directly managed stores nationwide. Last year's revenue was about 2.5 trillion won. Through the acquisition of K Car, KG Group has secured an "integrated mobility business structure" that organically connects ▲ automobile manufacturing (KG Mobility) ▲ automobile distribution (K Car) ▲ IT platform (KG ICT).
KG Group plans to implement an integrated service across the entire purchase, distribution, and service process by combining KG Mobility's vehicle production capabilities and global sales and service network with K Car's online and offline distribution platform.
In addition, it decided to seek the creation of new business opportunities by exploring the potential for overseas expansion of used-car distribution and mobility services, leveraging KG Mobility's overseas network and KG Steel's global business base.
KG Steel also plans to complement the cyclical volatility of the steel industry and diversify its business portfolio based on K Car's stable cash generation. A KG Group official said, "By linking with the group's mobility business, we will strengthen our mid- to long-term growth foundation and contribute to securing a stable revenue structure."
KG Group views this acquisition not as a simple takeover of corporations but as a "strategic turning point" to respond to the rapidly changing automotive industry environment. In line with the recent trend of the industry rapidly shifting from manufacturing-centric to distribution, services, and IT platforms, the strategy is to preemptively invest and seize market leadership.
A KG Group official noted, "Through an integrated mobility structure that organically connects manufacturing, distribution, and platforms, we will provide differentiated value to customers and build a foundation for sustainable growth."
The detailed terms of the acquisition will be finalized according to subsequent procedures and will be completed after the relevant legal and administrative approvals. The expected deal closing date is June 30.