From left, Chery Automobile President Zhang Guibing, Chery Chair Yin Tongyue, Chinese Ambassador to South Korea Dai Bing, KG Mobility Chair Kwak Jea-sun and KGM CEO Hwang Ki-young pose for a photo after signing a strategic investment agreement for global growth at the Grand Hyatt Seoul on Sunday. (KG Mobility) South Korean automaker KG Mobility said Monday it had secured a $75 million strategic investment from China’s Chery Automobile, as the two companies strengthen their cooperation in vehicle development and future technologies while expanding in global markets.The companies signed the agreement Sunday at the Grand Hyatt Seoul, extending a partnership that began with a platform licensing deal in October 2024 and a joint development agreement for midsize and large SUVs in April 2025.KGM Chair Kwak Jea-sun, KGM CEO Hwang Ki-young, Chery Chair Yin Tongyue, Chery President Zhang Guibing and Chinese Ambassador to South Korea Dai Bing attended the ceremony.“This strategic investment goes beyond a simple financial investment,” Kwak said at a press conference at the ceremony. “It is a new starting point for a long-term strategic partnership based on Chery Automobile’s deep confidence in KGM’s future growth potential and corporate value.”KGM plans to combine its expertise in product planning, design and vehicle development with Chery’s electrified powertrain and global vehicle platform technologies to reduce development time and accelerate new model launches.The first vehicle to emerge from the partnership, code-named SE-10, is scheduled to launch in early 2027. The midsize SUV, positioned as successor to KGM’s Rexton line, will be offered with plug-in hybrid and 2.0-liter gasoline powertrains.The companies also plan to cooperate in autonomous driving and advanced electrical and electronic architecture for software-defined vehicles.Kwak said the companies had discussed potential cooperation beyond the automotive sector, including semiconductors, robotics, raw materials and steel. They agreed to establish a task force to identify projects that could draw on their respective technologies, industrial networks and supply chains.“Strategic cooperation among global companies is no longer a choice,” Kwak said. “It has become an essential strategy for sustainable survival.”Chery Chair Yin said the partnership reflected shared strategic objectives.“The cooperation between Chery and KGM is no coincidence,” Yin said. “It is the natural result of the values and strategic directions shared by the two companies.”He said the agreement could become a model for cooperation between the South Korean and Chinese auto industries.KGM sought to ease concerns that the investment could affect its management control, as the investment will be made through convertible bonds issued by KGM to Chery.If the bonds are fully converted into shares under predetermined conditions, Chery would hold a stake of about 10 percent, Hwang said.“A stake of around 10 percent would not pose a problem for management control,” Hwang said. “This is an equity investment intended to deepen cooperation between the two companies, not one that will lead to participation in management.”Chery President Zhang said joint development would allow the companies to increase scale, reduce development costs and expand internationally.“Scale is extremely important in the automobile industry,” Zhang said. “Through joint development, we can reduce new-vehicle development costs.”He also pointed to potential opportunities arising from differences in tariff treatment for South Korean and Chinese vehicles in some markets.“Investment is only a small part of our cooperation,” Zhang said. “Our most important objective is overseas market expansion.”Chery said the companies could consider sharing production capacity in overseas markets, although it provided no details on potential locations or models.Hwang, however, dismissed speculation that KGM could manufacture Chery vehicles under contract at its Pyeongtaek plant in Gyeonggi Province.“We have no plans to produce Chery vehicles, and it is not under consideration,” Hwang said.Asked whether Chery could enter South Korea under its own brands, Zhang said it could consider the move if there was sufficient consumer demand. He added that Chery’s current priority was supporting KGM’s growth in South Korea and overseas.Chery also said it remained interested in the US, the world’s second-largest auto market, but had not developed a concrete entry plan because of regulatory requirements.