S.Korea's automotive unit Kolon Mobility Group reborn as separate entity

South Korea's Kolon Mobility Group has been launched with Lee Kyu-ho, the great grandson of the Kolon Group founder Lee Won-man, as co-CEO.

Formerly KolonGlobalCorporation's automotive unit that was spun off in July last year, the new company will handle the mobility operations of Kolon Group. 

Kolon Group on Wednesday announced in a board meeting that it decided to launch Kolon Mobility Group as a new corporation with co-CEOs Lee and Jeon Cheol-won, former vice president of Kolon Global's automotive division. Under this dual CEO system, Lee devises growth strategies, looks for new businesses and conducts digital transformation while Jeon handles sales, customer service and network management.

Lee said, "To create the best value for our clients to choose from, we will boost our overall business structure."

Kolon Mobility Group will form affiliates for imported car distribution and sales like Kolon Auto for Audi, Kolon Automotive for Volvo and Kolon J Mobility for Jeep, raise the number of dealerships for contracted brands and widen its portfolio to cover eco-friendly modes of transportation such as electric motorcycles.

The group also announced targets of 3.6 trillion won ($2.84 billion) in sales and 100 billion won in operating profit by 2025, adding that it will raise its annual sales from 30,000 units to 50,000.

The company will also sell used cars by setting up an integrated organization to boost the sales potential of nationally certified used cars. It will expand customer contact points through online and offline links and launch new units like subscription and test-drive platform services based on a supply chain of 94 branches and sales outlets nationwide.

"We will be reborn as a comprehensive mobility operator based on our history and know-how in the distribution and sales of imported cars," a Kolon Group source said.

Kolon Mobility Group on Jan. 31 will complete its relisting on the domestic stock market following its spinoff.

Write to Seo-Woo Jang at suwu@hankyung.com