Kolon Mobility acquires auto auction firm to expand used-car distribution

Acquires 100% stake in AutoHub Selca

Auction-sourced inventory to broaden certified used-car procurement channels

Value chain extended from new-car sales through used-car retail and exports

The Songpa headquarters of Kolon Mobility Group. The company announced it will acquire a 100% stake in AutoHub Selca, a specialist automotive auction firm. [Kolon Mobility Group]

Kolon Mobility Group is acquiring automotive auction specialist AutoHub Selca as it moves to expand its used-car retail business. The deal is part of a strategy to build out an automotive distribution value chain that goes beyond its core new-car dealership operations to encompass used-car procurement, resale and exports.

The company announced Thursday it will acquire a 100% stake in AutoHub Selca. The acquisition adds wholesale auction volume to the trade-in inventory already generated by its imported-car dealerships, broadening the channels through which it sources used vehicles.

Kolon Mobility Group plans to use the deal to strengthen procurement capacity for its 702 Kolon Certified Pre-Owned program. By securing a large-scale auction-based buying channel alongside trade-ins from new-car customers, the company said it can now maintain a stable supply of vehicles for both its online platform and offline sales network.

The group views the acquisition not simply as adding an auction facility, but as an opportunity to upgrade its overall used-car distribution structure. It plans to link the full process — procurement, inspection, reconditioning, sales and after-sales service — with its internal retail network to improve efficiency at each stage. With quality inventory widely regarded as the key competitive factor in the used-car market, the company also expects the deal to yield a proprietary supply chain advantage.

The AutoHub Auction facility. Kolon Mobility Group announced it will acquire a 100% stake in AutoHub Selca, a specialist automotive auction firm. [Kolon Mobility Group]

AutoHub Selca was founded in 2005 and operates an offline auction site in Anseong, Gyeonggi Province, spanning roughly 22,300 pyeong (about 73,590 square meters) with capacity for up to 2,400 vehicles. The company's two decades of vehicle valuation data and its nationwide dealer network are considered key assets.

Kolon Mobility Group plans to integrate AutoHub Selca's auction infrastructure and vehicle assessment data with its 702 Certified Pre-Owned service. The combination is expected to improve the accuracy of vehicle pricing and streamline the reconditioning process for certified used cars.

The group also intends to push further into overseas used-car exports. Leveraging AutoHub Selca's existing export channels and international sales network will allow it to diversify the destinations for domestically procured vehicles. By connecting used-car auctions, certified pre-owned sales and export channels, the company plans to extend its reach into related businesses including car rental, vehicle repair and extended warranty services.

"The acquisition of AutoHub Selca is a strategic decision to fundamentally strengthen the competitiveness of our 702 Certified Pre-Owned business and set a new standard in South Korea's used-car market," said Choi Hyun-seok, co-CEO of Kolon Mobility Group. "By organically combining auction infrastructure with our online platform, we will enhance our procurement power and distribution efficiency, and firmly establish our position as a comprehensive mobility company covering everything from new cars to used cars."

"This is a concrete move to secure the company's future growth engine," Choi added. "We will continue to improve the efficiency of our business portfolio and diversify our revenue base through structural transformation, building sustainable corporate value in the market."

Meanwhile, 702 Kolon Certified Pre-Owned is an imported certified used-car brand Kolon Mobility Group launched last year. It focuses on vehicles that have undergone detailed inspections and verified service histories, and operates an integrated online-offline sales model linking a digital platform with branches nationwide. The brand also offers a "702 Extended Warranty" service that takes effect immediately upon enrollment, regardless of whether the original manufacturer's warranty has expired.

kwater@heraldcorp.com