SEOUL, Aug. 3 (Yonhap) -- KG Mobility (KGM) said Monday it has secured a US$75 million investment from China's Chery Automobile Co. as the South Korean automaker seeks to strengthen its future mobility business.

Under the agreement signed on Sunday, KGM will issue convertible bonds (CBs), all of which will be purchased by Chery. If Chery converts the entire issuance into shares upon maturity, it is expected to acquire an approximately 10 percent stake in the South Korean automotive company.

The investment builds on the companies' strategic partnership established in 2024. Since then, they have jointly developed new vehicles and collaborated on autonomous driving technologies and software-defined vehicles (SDVs).

As part of the expanded partnership, the companies will broaden their cooperation on the SE10, KGM's upcoming midsize sport utility vehicle (SUV) scheduled for launch in January.

Chery, China's largest passenger vehicle exporter, has built a strong global presence, particularly in Latin America, the Middle East, Eastern Europe and parts of Southeast Asia.

The Chinese automaker's global vehicle platforms and extensive supply chain are expected to support KGM's efforts to accelerate new model development and expand its overseas business.

ejkim@yna.co.kr

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