KGM lands $75M from China's Chery to build its next-gen SUVs

KG Mobility (KGM) has secured a $75 million strategic investment from China's Chery Automobile , the two carmakers said. The funding will back KGM's new vehicles and future mobility technology.

The investment deepens an alliance that began with a platform licensing deal in October 2024 and a joint development pact for mid-sized and large SUVs in April 2025. It gives KGM access to advanced electrification technologies and global platforms as mid-sized automakers face rising development costs and stiffer competition.

The companies plan to pair KGM's vehicle planning, design, and engineering with Chery's electrified powertrains and global platforms to shorten development cycles. Their first jointly developed model, code-named SE10, debuts in January 2027 as a D-segment SUV offered in plug-in hybrid and 2.0-liter gasoline variants.

"By combining KGM's 70 years of engineering expertise with Chery's outstanding technological capabilities, we will further strengthen our competitiveness," KGM Chairman Kwak Jea-sun told reporters. For Chery, the deal builds a stronger foothold in Korea; asked about entering the market directly, it said it leaves the possibility open but will focus on the KGM partnership for now.

At $75 million, this ranks among the larger late-stage venture rounds in South Korea, sitting in the 93rd percentile of 268 such deals over the past 48 months. It underscores how mid-sized automakers are turning to cross-border alliances to fund the costly shift toward electrified, connected vehicles.