China’s Chery is investing in South Korea’s KG Mobility, formerly SsangYong

Chery is set to acquire a stake in KG Mobility through a $75 million investment, equivalent to approximately 108 billion won. The transaction will take place through the subscription of convertible bonds issued by the South Korean car manufacturer. Should these be converted into shares, the Chinese group will acquire a stake of around 10 per cent. The financial structure enables KGM to raise funds without altering the shareholding structure and allows Chery to strengthen an existing collaboration in the technological and industrial spheres. The cooperation will also cover automotive semiconductors, robotics, raw materials, steel and autonomous driving systems.

KG Mobility is the name of the former SsangYong following its acquisition by the KG Group in 2022. The company remains primarily focused on SUVs and pick-ups, but must fund the investments required to expand its electrified range and boost international sales volumes. Chery, on the other hand, brings platforms, hybrid systems and an extensive manufacturing and commercial presence outside China. In 2025, the group sold around 2.8 million vehicles, with 1.34 million units exported. In October 2024, KGM and Chery signed a strategic cooperation and licensing agreement for the use of the T2x platform. In April 2025, joint development began on the Se-10 project, a mid-size SUV intended to be offered with petrol and plug-in hybrid powertrains. The launch is scheduled for early 2027, with sales in South Korea and overseas markets.

The companies have indicated the possibility of sharing production capacity, distribution networks and international development activities. Chery has plants in several countries, whilst KGM can offer expertise gained in off-road vehicles, production capacity in South Korea and industrial agreements in Vietnam and Indonesia. At present, no plans have been finalised to produce Chery models at the South Korean plants.