KGM has obtained a $75 million strategic investment from China's Chery Automobile for the Korean automaker’s upcoming vehicles and future mobility innovations, according to reports.
KGM stated that the investment signifies the most recent advancement in a partnership that has grown from product collaboration to a lasting strategic alliance aimed at future expansion.
The accord comes after a platform licensing arrangement established by the two firms in October 2024 and a collaborative development agreement for mid-sized and large SUVs finalized in April 2025.
Both automakers intend to enhance collaboration in areas such as software-defined vehicles (SDVs), electrical and electronic systems, autonomous driving, and electrification.
KGM Chairman Kwak Jea-sun characterized the strategic partnerships as essential for car manufacturers aiming for sustainable development.
According to Kwak, during a press conference, global collaboration is crucial for ensuring future growth drivers.
Integrating KGM's 70 years of engineering knowledge with Chery's exceptional technological strengths will enhance our competitiveness and help us evolve into a sustainable future mobility enterprise.
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The firms will merge KGM's skills in vehicle planning, design, and engineering with Chery's electrified powertrain technologies and worldwide vehicle platforms to reduce development timelines and enhance competitiveness.
Their initial collaborative model, referred to as SE10, is set to launch in January 2027. The D-segment SUV will feature both plug-in hybrid and 2.0-liter gasoline options, utilizing Chery's platform and powertrain technologies, while integrating KGM's expertise in product development.
"With the impending release of the new strategic vehicle, we will begin development on a highly desired C-segment compact car," stated KGM CEO Hwang Ki-young.
“We aim to broaden our offerings with a variety of environmentally friendly vehicles in the future, and our development plan features a long-range electric vehicle powertrain as well,” says Hwang Ki-young.
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The two companies also plan to expand collaboration on upcoming vehicle technologies, such as SDV-oriented electronic architecture and autonomous driving systems—domains increasingly recognized as essential for the industry's shift toward smart, connected vehicles.
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The investment provides KGM enhanced access to cutting-edge electrification technologies and worldwide platforms as mid-sized automakers encounter rising development expenses and increasing competition. For Chery, the alliance offers a more robust presence in Korea while broadening its international cooperative network.