Kolon Mobility Group said on the 4th it will acquire Auto Hub Sellcar, a corporations specializing in car auctions.
The goal is to create synergy by expanding the used-car business through the purchase of 100% equity in Auto Hub Sellcar for 61.7 billion won.
Kolon Mobility Group will acquire Auto Hub Sellcar on July 31 by investing cash equivalent to 24.69% of its equity capital.
Kolon Mobility Group plans to establish vertical integration that connects every step of car sales and distribution through the acquisition of Auto Hub Sellcar.
In particular, the company plans to boost efficiency in the distribution stage as large-scale wholesale volume from the auction house is added to trade-ins from new-car dealerships.
The company also expects the expanded distribution platform, which enhances its purchasing competitiveness, to significantly strengthen procurement channels for 702 certified used cars.
Kolon Mobility plans to use the large-scale auction infrastructure it secures to build an independent product supply chain and cover not only imported cars but the broader car distribution industry.
Auto Hub Sellcar, which is being acquired, was founded in 2005 and operates an auction site in Anseong, Gyeonggi Province, measuring about 22,300 pyeong and able to accommodate over 2,400 vehicles.
Kolon Mobility plans to go beyond securing infrastructure and combine its capabilities—such as more than 20 years of accumulated car valuation data and a dealer network—into the company's 702 premium service.
In addition, the company expects to secure new growth engines in the global used-car export market through Auto Hub Sellcar's export channels and overseas sales network, while strengthening its business scope.
Choi Hyun-seok, co-CEO of Kolon Mobility Group, said, "This acquisition of Auto Hub Sellcar is a strategic decision to fundamentally strengthen the competitiveness of the 702 certified used-car business and to set a new standard in the used-car market," adding, "By organically combining auction infrastructure with the online platform, we will raise purchasing power and efficiency in the distribution stage and solidify our position as a comprehensive mobility corporations handling everything from new cars to used cars."