Four executives purchase 63,000 shares worth 400 million won
Move follows KG Group's acquisition and corporate rebrand
Earnings recovery and group synergy remain key challenges
Senior executives at KG Mobility Platform, the operator of the K Car used-car brand that recently joined KG Group, have purchased about 400 million won ($292,000) worth of company shares. The purchases, made shortly after a change in controlling shareholder, signal the management team's commitment to improving corporate value and accountability.
KG Mobility Platform announced Friday that Chief Executive Officer Jung In-kook and three other senior executives bought a combined 63,000 shares on the open market.
Jung led the purchases, acquiring 40,000 shares. Park Ji-won, head of the rental car division, and Jeon Ho-il, head of the marketing division, each bought 10,000 shares, while Hwang Jae-hyeok, head of the auction division, purchased 3,000 shares. The total value of the purchases came to about 400 million won.
It is not the first time Jung has bought company shares. In 2022, he invested about 250 million won to acquire 10,000 shares.
The timing is notable. KG Group completed its acquisition of K Car on Aug. 31, and the company formally relaunched this month under its new corporate name, KG Mobility Platform, having previously operated as K Car. The consumer-facing K Car brand will be retained. KG Group is pursuing an expansion of its mobility business by linking KG Mobility, which handles vehicle manufacturing, with used-car sales, rental cars and auto financing.
Earnings recovery is another challenge for the new management. Last year, the company posted record-high sales of 2.44 trillion won and operating profit of 76 billion won. In the second quarter of this year, it recorded sales of 439.2 billion won and an operating loss of 33.6 billion won, hurt by weak consumer sentiment in the used-car market and disruptions to Middle East exports. It was the company's first quarterly operating loss since its listing in 2021.
KG Mobility Platform's core business involves buying used vehicles directly, inspecting them and reselling them through company-owned outlets. It also operates rental car and auction businesses, with 48 directly managed locations nationwide and an online home-delivery purchase service.
Since joining KG Group, the company has been working to broaden its scope by linking its used-car operations with KG Mobility's new-vehicle business and expanding into rental, auction and financial services. How quickly the group can generate meaningful synergies across its affiliates is expected to be a key variable in the company's future valuation.
"This share purchase is our way of showing, through action, that management has conviction in the company's growth potential and corporate value," Jung said. "We will continue to strengthen our core business competitiveness, deliver stable earnings and do our utmost to enhance corporate and shareholder value."
kwater@heraldcorp.com
