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Photo = K Car |
[Alpha Biz= Kim Jisun] KG Group announced on April 1 that it will acquire a controlling stake in K Car, Korea’s largest direct used-car retailer, for KRW 550 billion.
The acquisition will be carried out jointly by KG Group, KG Steel, and Cactus Private Equity, targeting a 72.2% stake held by Han & Co Auto Holdings. The transaction is scheduled to close on June 30.
With this deal, KG Group aims to establish a comprehensive mobility ecosystem spanning vehicle manufacturing, used-car distribution, and IT-based platforms. The group plans to generate synergies between KG Mobility and K Car by combining manufacturing capabilities and global sales networks with K Car’s online and offline distribution platforms.
KG Steel’s global business network is also expected to support expansion into the international used-car market, where K Car currently has no dedicated overseas sales operations.
Listed on the KOSPI in 2021, K Car operates 48 directly managed retail outlets nationwide and is the leading platform in Korea’s direct used-car market. The company offers a range of services, including its online “Home Service” for car purchases, vehicle procurement and sales, rental services, and auto financing.
K Car recorded its highest-ever annual sales volume of 156,290 vehicles last year, generating revenue of KRW 2.44 trillion and operating profit of KRW 76 billion.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
