Song Hoseong, Kia President: "Global Trade and Regulatory Barriers Are Opportunities, Not Crises, for Kia"

Kia President Song Ho-sung:
"Geopolitical Shifts and Regulatory Barriers
Will Become Opportunities for Kia"

"Crisis acts as an opportunity for those who are prepared. The upcoming geopolitical shifts and regulatory barriers will also present opportunities for Kia."

On the 14th, Kia President Song Ho-sung emphasized this at the 81st regular shareholders' meeting held at EL Tower in Seocho-gu, Seoul. He mentioned risks arising from changes in the global business environment and referred to past crisis management during the COVID-19 pandemic.

President Song stated, "As the world returns to regionalism and nationalism, the international trade order is showing signs of new realignment, and with strengthened regulatory barriers such as emissions and fuel efficiency standards, there is a continuous demand for a business shift focused on eco-friendly vehicles. These changes are expected to act as risk factors across the entire industry."

He continued, "Even during the past COVID-19 period, when the entire industry faced sales disruptions due to supply chain disturbances, Kia turned the crisis into an opportunity to expand its global market dominance," expressing confidence in overcoming crises.

Kia President Song Ho-sung is giving a greeting at the Kia regular shareholders' meeting on the 14th. Photo by Woo Soo-yeon

Last year, Kia's sales exceeded 100 trillion KRW for the first time in history. Sales increased by 7.7% year-on-year to 107.4 trillion KRW, and operating profit reached a record high of 12.7 trillion KRW. This year, global sales are expected to increase by about 4% year-on-year to 3.22 million units.

Kia is leading the popularization of electric vehicles in 2023 by launching the compact electric sports utility vehicle (SUV) EV3 and expanding its electric vehicle lineup. From this year through next year, it will release the compact sedan EV4, the China strategic electric vehicle EV5, and the small SUV EV2, completing a full lineup of electric vehicle models.

In particular, Kia is also challenging new markets such as PBVs (Purpose Built Vehicles) and pickup trucks. In the second half of this year, it will launch its first PBV brand vehicle, the 'PV5,' in Europe, and introduce the pickup truck Tasman mainly in the Asia-Pacific and Middle East regions. Kim Sang-dae, Vice President of the PBV Business Division, said, "We aim to sell 250,000 PBVs by 2030 targeting three major markets: Europe, Korea, and general regions," adding, "We will provide an innovative business platform by combining not only simple hardware but also solutions and future technologies."

On this day, Kia presented agenda items including approval of the 2024 financial statements, partial amendments to the articles of incorporation, and the appointment of three inside directors and one outside director. Chairman Chung Eui-sun and President Song were reappointed as inside directors, and Kim Seung-jun, head of the finance division, was newly appointed. Professor Shin Hyun-jung of KAIST's Department of Mechanical Engineering was reappointed as an outside director.

Additionally, 'real estate development business' was added to the articles of incorporation. President Song explained, "This is for the development of new business sites such as integrated flagship stores for vehicle test drives, purchases, maintenance and services, and brand experiences, as well as for the operation of some building leases." Industry insiders view this as a strategic move to expand business in various fields, including increasing customer touchpoints and expanding the used car business.

On this day, Kia also more than doubled the director remuneration limit from the existing 8 billion KRW to 17.5 billion KRW. Regarding this, President Song said, "This reflects the new remuneration payment to Chairman Chung Eui-sun, who voluntarily did not receive remuneration during the difficult management environment in 2019, as part of strengthening responsible management."