KGM has secured a $75 million strategic investment from China's Chery Automobile for the Korean carmaker’s new vehicles and future mobility technology, the companies said Sunday.
The investment marks the latest step in an alliance that has evolved beyond product collaboration into a long-term strategic partnership focused on future growth, KGM said.
The agreement follows a platform licensing deal signed by the two companies in October 2024 and a joint development pact for mid-sized and large SUVs reached in April 2025.
Both carmakers also plan to deepen cooperation across software-defined vehicles (SDVs), electrical and electronic architecture, autonomous driving and electrification.
KGM Chairman Kwak Jea-sun described the strategic alliances as indispensable for automakers seeking sustainable growth.
"Global cooperation has become essential for securing future growth engines," Kwak told reporters during a press conference.
"By combining KGM's 70 years of engineering expertise with Chery's outstanding technological capabilities, we will further strengthen our competitiveness and grow into a sustainable future mobility company."
The companies will combine KGM's vehicle planning, design and engineering expertise with Chery's electrified powertrain technologies and global vehicle platforms to shorten development cycles and improve competitiveness.
Their first jointly developed model, code-named SE10, is scheduled to debut in January 2027. The D-segment SUV will be offered in both plug-in hybrid and 2.0-liter gasoline variants, leveraging Chery's platform and powertrain technologies while incorporating KGM's product development know-how.
“Following the upcoming launch of the new strategic vehicle, we will initiate development for a much sought-after C-segment compact car,” KGM CEO Hwang Ki-young said.
“We plan to expand the lineup with a range of eco-friendly vehicles over time, and our development roadmap also includes an extended-range electric vehicle powertrain.”
The two firms also intend to broaden cooperation in future vehicle technologies, including SDV-based electronic architecture and autonomous driving systems — areas increasingly viewed as critical to the industry's transition toward intelligent, connected vehicles.
The investment gives KGM greater access to advanced electrification technologies and global platforms at a time when mid-sized automakers face mounting development costs and intensifying competition. For Chery, the partnership provides a stronger foothold in Korea while expanding its global collaboration network.
The latest signing ceremony featured Chery Automobile Chairman Yin Tongyue, Chinese Ambassador to South Korea Dai Bing and Kwak.
“Korea and China are leading automotive countries,” Yin said.
“We will build on our respective strengths to create genuine synergies through complementary capabilities and shared resources.”
When asked about the Chinese carmaker’s potential entry into the Korean market, Chery said it leaves open the possibility, but it will now focus on deepening its partnership with KGM.