Official Launch of Kolon Mobility Group, Evolution into a Comprehensive Mobility Service Provider

▷ To accelerate growth in 5 areas: reinforce brand network, expand certified used car business, secure online and offline capability, extend business categories and launch new businesses

▷ Aiming to achieve sales of KRW 3.6 trillion and operating profit of KRW 100 billion in 2025

▷ To offer customer-oriented comprehensive mobility service as a “Lifetime Partner”

 The launching ceremony of Kolon Mobility Group will be held on January 4, to celebrate the official spin-off of the automobile business from Kolon Global and present its vision of becoming a Total Mobility Company. With January 1, 2023 as the date of installment registration, the board of directors resolved on the launch of the new company on January 2.

 Based on the long history and extensive knowhow in imported car sales, the newly established company plans to reorganize and expand its business structure to evolve into a total mobility company. To this end, Kolon Mobility Group aims to focus on 5 key areas: ▲ reinforce brand network; ▲ expand certified used car business; ▲ develop online and offline capabilities; ▲ extend business categories; and ▲ offer new customer experiences through new businesses.

 In case of the new car business, Kolon Mobility Group will continue to sell Jeep and Polestar for which it entered into the dealership agreement in 2021, and expand the sustainable mobility portfolio including electric motorcycles. As for the used car business, an integrated used-car organization will be created at the Group level in order to facilitate the sales of certified used cars nationwide by leveraging the Group’s automobile diagnosis and repair capacity.

 The company seeks to maximize the effect of hybrid display and enhance customer value by increasing online and offline customer contact points and providing multimedia contents. For the purpose of expanding business categories, 94 branches and sales network nationwide will be leveraged to satisfy new and local demand, and after-sales services that offer systematic maintenance are anticipated to serve as additional customer contact points.

 Subscription service and test drive platform service are in the pipeline to be launched as new businesses, and mobility related luxury goods will be offered as a means to expand the distribution portfolio. Total mobility service that follows the customer’s life cycle will be implemented to enable the company to offer new customer experiences as a Lifetime Partner.

 The company’s quantitative goal is to achieve KRW 3.6 trillion in sales and KRW 100 billion in operating profit by 2025. It also aims to increase combined new and used car sales from current 30,000 to 50,000 unit level. The newly founded company recorded estimated sales of KRW 2.2 trillion and operating profit of KRW 70 billion in 2022. Despite the semiconductor shortage in the car industry between 2019 and 2022, the company’s sales grew by average 19.2% annually.

 The flexible structure of Kolon Mobility Group equips the company with the independent power to drive and execute in order to achieve its vision and goals. The Group distributes BMW, Rolls-Royce, and premium audio brands Bang & Olufsen and Bose. Kolon Auto, Kolon Automotive and Kolon J Mobility that respective sell Audi, Volvo and Jeep are to incorporated into the company. The expertise of the executives in mobility business and the efficient decision-making structure will support the company to lead the mobility industry that is currently undergoing changes of business models and expansion of size.

 Lee, Kyu-Ho, co-CEO of Kolon Mobility Group, explained that “we will strengthen the fundamental of the overall business so as to create the highest value for the customers,” and added that “we will exert our best efforts to innovate the business structure and pave the way to create future values.”

 Co-CEO Jeon, Cheol-Won remarked before the staff who were present at the ceremony that “we will do our best to provide One & Only services to our customers together with our staff who have the No.1 DNA. We hope to create synergy by diversifying the current new car-oriented business and lead the customer-centric comprehensive mobility services.”

 Kolon Mobility Group will be relisted on the stock market following its spin-off on January 31 (Tues). Co-CEO Lee, Kyu-Ho will be in charge of developing future growth strategy, developing new businesses, achieving digital transformation and strengthen the financials. Co-CEO Jeon, Cheol-Won will be responsible for the business side of the newly established company including sales and after-sales network management.