KG Mobility Turns Profit After 16 Years... Also Achieves Record-High Sales

First Return to Profit Since 2007 Last Year

KG Mobility announced on the 22nd that its operating profit based on separate financial statements reached 5 billion KRW last year. This is the first time in 16 years since 2007 that the company posted a profit purely from operating performance.

Last year's sales increased by 10.4% compared to the previous year, reaching 3.78 trillion KRW, the highest annual level to date. Net profit was 1.2 billion KRW. Domestic sales volume was 63,354 units, and exports were 52,754 units, totaling 116,099 units sold. This represents a 1.9% increase from the previous year.

Entrance of KG Mobility headquarters in Pyeongtaek, where the factory is located [Photo by Yonhap News]

The company explained, "As a newly started affiliate of the KG Group, we improved our internal management structure by enhancing productivity, reducing costs, and aggressively pioneering new overseas markets, which increased export volumes."

Exports achieved their best performance in nine years since 2014 by launching new products centered on the mid-size sport utility vehicle (SUV) Torres in Europe, Latin America, and the Asia-Pacific region, while entering new markets. Export volume increased by 16.5% compared to the previous year.

Torres launch event held in Egypt last November
[Photo by KG Mobility]
[Image source=Yonhap News]

This year marks the 70th anniversary of the company's establishment. It plans to continue improving its internal structure and firmly establish the KGM brand both domestically and internationally. The company will increase overseas sales by developing various new vehicles, including electric pickup trucks, and strengthening its knock-down (KD) product business.

Jung Yong-won, CEO of KG Mobility, said, "We succeeded in a turnaround just over a year after starting anew as a member of the KG family. This year, we will transform into a company that achieves sustainable growth."