KG Mobility Partners with Hushi Partners to Tackle EU Carbon Regulations

KG Mobility (KGM) is taking proactive steps to address the European Union's Carbon Border Adjustment Mechanism (CBAM).
 
On October 20, KGM announced that it has signed a memorandum of understanding (MOU) with carbon management firm Hushi Partners.
 
CBAM imposes costs based on the carbon emissions generated during the production of imported goods. The mechanism has been in effect since January for six categories, including steel and aluminum, with plans to expand to automotive parts starting in 2028.
 
Companies must purchase CBAM certificates corresponding to their products' carbon emissions. If they cannot provide actual emissions data, the EU will apply a country-specific default value, which will incur surcharges of 10% in 2026 and 30% after 2028.
 
KGM plans to collaborate with Hushi Partners to establish a system for calculating emissions by component, as well as to collect and verify carbon data across its supply chain. This initiative aims to create a comprehensive response system that connects to the management of CBAM certificate costs.
 
Lee Yong-heon, Executive Director of KGM's Research Planning Center, stated, "This marks a significant first step in proactively responding to European carbon regulations in collaboration with our partners. We aim to expand the established calculation system across our supply chain to enhance our export competitiveness."
 
Meanwhile, KGM is focusing on expanding its global exports, with increasing sales in European markets such as Turkey, Germany, and Hungary.