KG Mobility, once a perennially loss-making company, has returned to profitability last year, driven by increased exports to Europe and Latin America.
According to industry and securities market sources on Feb. 6, KG Mobility’s operating income for last year is estimated to be around 5 billion won. This marks the first time KG Mobility has recorded an annual profit since 2016.
KG Mobility achieved an operating profit of 28 billion won in 2016, buoyed by the success of its Tivoli compact SUV model, but subsequently fell back into losses. In 2020, the market downturn caused by the Covid-19 pandemic expanded the loss to approximately 450 billion won.
Despite recording an operating loss of 112 billion won in 2022, the year it was acquired by the KG Group, KG Mobility successfully returned to profitability last year. The mid-size SUV Torres played a key role, selling more than 38,000 units last year and becoming KG Mobility’s flagship vehicle.
With last year’s return to profitability, KG Mobility plans to pay productivity incentive bonuses and profit-sharing bonuses for the first time.
KG Mobility has set its operating profit target for this year at over 130 billion won, with a production goal, including complete knock-down units, of 162,800 vehicles.