KG Group Buys K Car and K Car Capital from Hahn & Co for $517.2m

KG takes 72.19% of used-car platform K Car plus 100% of K Car Capital, linking car making, car sales and IT across the group.

SI Consumer & Retail Used-car retail platform #secondary-buyout #domestic #majority #mobility
Deal value
$517m
Stake
72.19%

구주

Implied 100%
$526m

~KRW 15,607/sh (KRW 550.09bn / 35,245,670 sh) x 48,820,848 voting shares outstanding

Revenue
$1.7bn

2025 별도 · DART-verified

Op. income
$52m

2025 별도 · DART-verified

Multiples
EQV/EBIT 10.0xPSR 0.3x

On implied equity value

DART 20260318000506

Target
K Car · Used-car retail platform
Buyer
KG Steel (KG Group) · SI
Seller
Hahn & Co (Hahn & Co Auto Service Holdings)
Structure
Secondary
Announced
Apr 1, 2026
Closed
Aug 31, 2026
Stage
Closed

Target

K Car is a used-car retail platform built on a '100% company-operated certified used car' model, combining online channels such as its home-delivery service with nationwide stores and in-house financing through K Car Capital. It became the first used-car company listed on KOSPI in 2021 and posted 2025 revenue of KRW 2.4388 trillion, operating profit of KRW 76 billion, EBITDA of KRW 124.8 billion and a 12.7% effective market share.

Deal rationale

KG Group said it would combine KG Mobility's manufacturing and global sales network with K Car's online/offline retail platform for an integrated mobility service across purchase, distribution and service; Chairman Kwak Jae-sun said KGM's certified used-car business 'has limits with KGM vehicles alone' and that K Car's platform could be used overseas. K Car goes to KG Steel and K Car Capital to KG Inicis in a two-track structure. Hahn & Co bought SK Encar's direct-sales unit for about KRW 200 billion in 2018, launched the K Car brand, sold about KRW 300 billion of shares in the 2021 IPO, and exited after about eight years; The Bell put cumulative proceeds at no less than KRW 1.15 trillion.

수직계열화신사업 진출PE 회수(펀드 만기)
Revenue$1.7bn
Operating income$52m
EBITDA—
Net income$35m

2025 별도 · DART-verified · 20260318000506

Reported multiples

  • PBR 1.2x 케이카캐피탈 지분 100% 가치(약 2000억원)를 순자산의 1.2배로 산정 source ↗

Lead

KG Steel, part of KG Group, signed a share purchase agreement with Hahn & Co on 1 April 2026 to buy 72.19% of used-car platform K Car and 100% of K Car Capital. The price was $379.3m for K Car and about $137.9m for K Car Capital, $517.2m in total, and the deal closed on 30 June. K Car has since been renamed KG Mobility Platform.

USD figures are converted at KRW 1,450 = USD 1.

Why this matters

A used-car platform built by a domestic private equity firm has passed to a strategic buyer. K Car’s reported enterprise value of about $827.6m is roughly 16x its 2025 operating income of $52.4m.

Strategic context

KG Group now links car making (KG Mobility), car sales (K Car) and IT (KG ICT). Hahn & Co bought SK Encar’s direct-sales arm for about $137.9m in 2018, built it into K Car and listed it in 2021. Its return was reported at about 4x (thebell) to more than 5x (Edaily).

ItemFigure
2025 revenue$1.7bn
2025 operating income$52.4m
2025 net income$35.1m

Financials from the DART 2025 annual report (separate basis).

What’s next

K Car remains listed. How it works with KG Group’s other mobility companies is the next thing to watch.