KG Mobility Platform, which operates South Korea's largest direct used car platform K-Car, will move its headquarters to KG Group's office next month. Following its integration into the group, the relocation is expected to enhance collaboration among subsidiaries. Attention is focused on whether synergies can be created by linking K-Car's used car distribution network with KG Mobility's (KGM) finished vehicle business, covering everything from new car sales to used car purchases.
According to industry sources on October 27, KG Mobility Platform is set to relocate its office to KG Tower near Seodaemun Station by the end of November. Previously, the company had been leasing space at Signature Tower near Euljiro, with approximately 150 employees, excluding those at K-Car direct stores, moving to the new location.
This will be the first office move for KG Mobility Platform in about eight years, since September 2018. The company changed its corporate name from K-Car to KG Mobility Platform at the end of August when it joined KG Group. However, it continues to operate under the familiar K-Car brand for its direct used car business.
The relocation is expected to further solidify collaboration among mobility subsidiaries within the group. By combining KGM's automotive manufacturing capabilities with K-Car's used car distribution network, there is potential for an expanded integrated mobility business that includes finance and payment solutions.
Particularly, a model linking new car purchases with used car disposals is being discussed. Customers who buy KGM vehicles could be offered K-Car's used car purchase services to facilitate vehicle exchanges. This could help KGM increase new car sales while allowing KG Mobility Platform to secure used cars more reliably.
The financial sector is also expected to see enhanced competitiveness, as K-Car acquired its affiliated financial company, K-Car Capital, during its establishment. This foundation allows for the integration of existing used car financing with KGM's new car sales. For instance, customers who sell their old cars to K-Car and then purchase new KGM vehicles could receive guidance on financing options for both the sale and purchase.
In terms of KGM's performance recovery, this collaboration is seen as an opportunity. KGM has recently experienced a decline in domestic sales, leading to a significant increase in its export ratio. From January to September, total sales reached 81,033 units, with domestic sales accounting for only 28,816 units, or about 35.6%. During this period, domestic sales fell by 6.8% compared to the previous year, while exports increased by 1.5%.
The internal organizational restructuring is already underway. Following the appointment of Woochi Gu, head of the strategy planning team at KG Steel, as an internal director at KG Mobility Platform, a reorganization was carried out in September. A major personnel reshuffle is expected by the end of the year, which will finalize the organizational restructuring. The key will be how personnel are allocated and how work adjustments are made to accelerate collaboration among subsidiaries.
* This article has been translated by AI.
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