KG Mobility (KGM) has secured a USD 75 million investment from China's Chery Automobile, expanding their partnership beyond joint platform and sport utility vehicle (SUV) development into future-growth areas including autonomous driving, software-defined vehicles (SDVs), robotics and semiconductors.
KGM said on Aug. 3 that it had signed a strategic investment agreement with Chery aimed at joint global growth. The deal follows a platform licensing agreement signed in 2024 and a joint-development agreement for mid- and large-size SUVs in 2025.
The two companies plan to accelerate new vehicle development by combining KGM's expertise in product planning, design and vehicle engineering with Chery's technologies in electrified powertrains and global vehicle platforms.
Their first joint project, codenamed “SE-10,” is a midsize SUV designed to carry forward the legacy of KGM's Rexton brand. It is expected to launch in early 2027 in plug-in hybrid and 2.0-liter gasoline variants.
KGM and Chery have also agreed to move forward with a second joint development program following the SE-10 project.
The companies plan to develop strategic vehicle models that can be sold in major global markets, including South Korea, China and Europe. Local regulations, safety standards and customer preferences across different regions will be incorporated from the earliest product-planning stages.
They will gradually determine the vehicle models, specifications, production and sales regions, and each company's responsibilities, with the goal of strengthening their global product competitiveness.
The partnership will also expand into autonomous driving and SDV technologies. Beyond the auto sector, the companies will explore joint research, pilot projects and commercialization opportunities in robotics and semiconductors. In automotive semiconductors, they also plan to discuss potential joint investment and co-development initiatives.
To support their global expansion, KGM and Chery will consider joint investments in overseas production facilities and business hubs. The companies intend to leverage each other's global manufacturing capacity, supply chains, sales channels and service networks, while reviewing specific investment structures and cooperation models for overseas strategic markets with proven commercial potential.
The two companies will establish sector-specific task forces involving senior executives to define implementation plans and responsibilities. Their top management teams will also regularly review progress and key results.
“KGM will continue to grow into a future mobility company by combining its 70 years of automotive expertise with Chery's eco-friendly powertrain technologies,” said Kwak Jae-sun, chairman of KGM.
The expanded partnership is also expected to accelerate Chery's potential entry into the South Korean market. A Chery representative said the company has a wide range of vehicle platforms and could consider electric vehicles as part of efforts to meet the needs of Korean consumers.
