Chairman Kwack Jae-sun of KG Group: "Entering Global Used Car Platform Market with K Car Acquisition... 50% Shareholder Return Over 5 Years"

Future Strategies Unveiled by CEOs of Six Subsidiaries
Connecting Mobility Manufacturing, Distribution, and Finance through K Car Acquisition
Innovation Roadmap for Steel, Chemicals, Environment, and Payment Infrastructure

Kwack Jae-sun, Chairman of KG Group, announced that the company will complete its acquisition of K Car by the end of this month and enter the global used car platform market. He also confirmed the group's new policy that six listed subsidiaries will return 50% of their net profit to shareholders over the next five years.

JaeSun Kwak, Chairman of KG Group, is making a presentation at a press conference on "Restoring Corporate Value and Future Strategy of KG Group" at the Taeyoung Building in Yeouido on the 9th. KG Group

KG Group held a press conference on the "Normalization of KG Group's Corporate Value and Future Strategy" at the Taeyoung Building in Yeouido on June 9. Chairman Kwack stated, "I thought that working hard and achieving good results would be reflected in our market value, but it falls short," adding, "The shares of KG's listed subsidiaries are undervalued compared to their intrinsic value."

He said, "We expect the Fair Trade Commission’s review of the K Car acquisition to be completed by the end of this month," and emphasized, "K Car is the first company within the group that can create synergy with other affiliates."

He continued, "I want to use K Car to build a world-class platform. Currently, the used car market focuses on exporting cars overseas, but through K Car, we can differentiate ourselves with a platform strategy that handles both purchasing and selling."

He also added, "While KG Mobility (KGM) is engaged in the certified used car business, the limited domestic sales volume makes the business less viable. By collaborating with K Car in the certified used car business, we can expand beyond KGM vehicles to include various brands and grow the used car business."

Chairman Kwack addressed the recent undervaluation of the group's subsidiaries, saying, "I do not understand why the market undervalues us," and expressed, "I have received much criticism from shareholders, including accusations that we are intentionally lowering stock prices."

He asserted, "There are rumors that we are suppressing the share price for inheritance purposes, but I do not wish to make such sacrifices for my children. I do not associate the share price with inheritance, and such claims undermine the pride I have built as a manager for over 40 years."

Jaeson Kwak, Chairman of KG Group, is making a presentation at a press conference on 'Normalization of KG Group's Corporate Value and Future Strategy' held at the Taeyoung Building in Yeouido on the 9th. KG Group

Additionally, on this day, the CEOs of KG Group subsidiaries attended and announced their mid-to-long-term growth strategies.

Kim Jae-ik, CEO of KG Chemical, stated, "We aim to target the global agricultural market with customized eco-friendly fertilizers optimized for key crops and cultivation environments in countries such as Vietnam, Cambodia, and Indonesia." He added, "We plan to build four storage tanks on idle land at the Ulsan Onsan Plant to expand our bio-marine fuel-based eco-friendly fuel storage infrastructure business."

Park Saeng-geun, CEO of KG Eco Solution, said, "We will secure competitiveness in high-quality biofuel production and expand supplies to refiners," and added, "To enter the global marine bio-heavy oil business, we will expand facilities at the Ulsan Plant by up to four times."

Hwang Ki-young, CEO of KGM, announced, "By 2030, we will sequentially launch seven SUV-focused eco-friendly vehicles, including electric, hybrid, and plug-in hybrid models." He set targets of selling 200,000 units and achieving 10 trillion won in revenue.

He also revealed plans to begin operating a system in Vietnam, with FUTA Group, to produce 15,000 units annually starting in September, and to begin mass production of the 'Musso' in Saudi Arabia from August.

Hwang Ki-young, CEO of KG Mobility, is making a presentation at the 'KG Group Corporate Value Normalization and Future Strategy' press conference held at the Taeyoung Building in Yeouido on the 9th. KG Group

KG Steel will sequentially introduce generative and agentic artificial intelligence (AI) by 2029 to establish a new "AI-based smart factory." The company will also strengthen cooperation with K Car to expand new cash cows in automotive materials.

KG Inicis will foster its new businesses—Japanese cross-border e-commerce, foreign exchange transactions, and digital currency—as growth drivers. KG Financial will move beyond its payment-centered business structure and begin its transformation into a "digital financial services company."

Regarding the succession of his son, Kwack Jeong-hyun, President of KG Group, Chairman Kwack said, "I am not concerned with how much inheritance tax my son will have to pay." He added, "We will continue to communicate with the market, share our management performance and future development strategies, and strive to enhance shareholder value."

This content was produced with the assistance of AI translation services.