Korando and Torres to be Manufactured in Vietnam... KG Signs KD Contract with Local Company

KG Mobility announced on the 31st that it has signed a knock-down (KD) vehicle contract with Kim Long Motor, an automotive subsidiary under the Vietnamese Phu Ta Group. This is the first global event since the company changed its name from SsangYong to KG.

The signing ceremony held at KG Tower was attended by KG Group Chairman Kwak Jae-sun, CEO Jung Yong-won, Phu Ta Group Chairman Nguyen Hu Luan, and President Mai Phuoc Nguyen. Phu Ta Group is a company with assets worth approximately 3 trillion KRW, engaged in automobile sales and passenger transportation. Kim Long, the automotive subsidiary, is currently building a dedicated KD factory for KG Mobility in the Hue Industrial Complex near Da Nang in central Vietnam.

KG Mobility CEO Jeong Yong-won (from left), KG Group Chairman Kwak Jae-sun, Putra Group Chairman Nguyen Hu Luan, and Mai Phuoc Nguyen took a commemorative photo after signing the KD supply contract on the 31st.

The export volume is planned to start at 15,000 units next year and increase to 60,000 units annually by 2029. The total is expected to reach 210,000 units, with sales amounting to around 6 trillion KRW. The models assembled and produced locally in Vietnam in the first phase from 2024 will be Tivoli, Korando, and Torres, and from 2025, the All New Rexton and New Rexton Sports & Khan will also be manufactured.

Additionally, a contract was signed to supply the entire production facility along with the KD supply. KG Mobility will also transfer its production know-how. Supplying the entire production facility is a first for KG Mobility.

This Vietnam plant is KG Mobility’s first production base in ASEAN countries. Based on this, the company plans to increase exports to the Southeast Asian market in the future. The company stated, "Vietnam is not only a potentially huge market expected to see a significant increase in automobile purchases but also a strategic base for expanding export volumes to the Southeast Asian market. We will steadily increase overseas sales by pioneering emerging markets as well as existing markets such as Europe."