KGM Posts 28.5 Billion KRW Operating Profit in First Half, Achieves Third Consecutive Year in the Black

Second Quarter Revenue Surpasses 1 Trillion KRW for the First Time in Nine Quarters

On July 25, KG Mobility announced that its operating profit for the first half of the year reached 28.5 billion KRW, marking a profit for the third consecutive year for the first time in 21 years.

Revenue increased by 8.11% year-on-year to 1.9432 trillion KRW, with net profit amounting to 11.1 billion KRW. Revenue also surpassed the 1 trillion KRW mark in a single quarter for the first time in nine quarters since the first quarter of 2023 (1.0843 trillion KRW).

This was attributed to an increase in export volume driven by the expansion of new model launches and entry into new markets. Additionally, efforts to improve profitability, enhance productivity, and favorable exchange rates also contributed.

In particular, the company explained that operating profit was achieved solely through pure operating performance resulting from increased export volume, following the first quarter, demonstrating that it is establishing a foundation for sustainable growth.

In the first half, total sales reached 53,272 units, consisting of 18,321 units in the domestic market and 34,951 units for export. Although domestic sales declined, resulting in a year-on-year decrease, the increase in export volume led to three consecutive months of growth since April.

Exports rose by 7.3% compared to the same period last year, and first-half export volume set a new record for the first half in 11 years since 2014 (41,000 units).

KGM expects sales volume to increase further once deliveries of the Actyon Hybrid begin. The company recently launched the subscription service 'KGM Mobilling' and is preparing various test drive events ahead of the opening of the 'Experience Center Busan' at the end of this month, aiming to expand customer engagement.

A KGM official stated, "Despite the contraction in the domestic market, we achieved a profit for the second consecutive quarter solely through pure operating performance, thanks to the increase in export volume, favorable exchange rates, and efforts to improve profitability," adding, "We will further enhance profitability in the second half by increasing sales volume."