Chery South Korea entry set for next year

Chery Automobile plans a South Korea entry next year, setting up a direct contest with Hyundai Motor and Kia on their home ground, KED Global reported on October 23. The Chery South Korea entry will add pressure on Hyundai and Kia after BYD vaulted to fourth place among imported brands in South Korea in the first half of 2026.

Chery is China's largest passenger vehicle exporter, and the Chery South Korea entry follows a stronger than expected showing by Chinese EVs in a market long dominated by Hyundai and Kia. The company has been showing off its Omoda C5 as it lays out its ambitions for the Korean market.

Chery South Korea entry follows BYD's debut

BYD's debut gave Chinese EVs a foothold in Korea. BYD Korea sales lifted the brand to fourth among imported brands in South Korea in the first half of 2026. Officials have responded by tightening support: the country will stop subsidies for buyers of BYD electric vehicles from next month, according to KED Global. The pace of BYD Korea sales took the industry by surprise.

Imported vehicles are already gaining ground in Korea. Tesla's Model Y is closing in on Kia's Sorento as the country's top seller, KED Global reported. At the same time, South Korea's hybrid market shrank for the first time in the first nine months of the year while EV sales surged 75%, a shift that favors new electric entrants. The BYD Sealion 7 is among the models affected by the subsidy decision, KED Global reported.

Chery hopes to repeat BYD's stronger than expected showing. Competition in South Korea's auto market is set to intensify further as the Chinese carmaker gears up to vie for share, KED Global reported from Wuhu, China.

Chery South Korea bet: $75 million for KG Mobility

Chery has already moved to build a Korean presence ahead of the Chery South Korea entry. In August, the company agreed to invest $75 million in KG Mobility, the former SsangYong. Chery Automobile president Zhang Guibing and KG Mobility chief executive Hwang Ki-young took questions from reporters at the signing ceremony for the strategic investment agreement in Seoul on August 2, 2026.

The investment is aimed at giving Chery a stronger Korean presence, handing the Chinese carmaker a local partner before it starts selling cars in the country. The move mirrors a wider shift: Chinese automakers are pairing exports with local partnerships as they enter Korea. The Chery South Korea entry is scheduled for next year.

Why Korea is exposed as Chery South Korea entry nears

South Korea has emerged as the auto market most exposed to Chinese-made electric vehicles, with low tariff and subsidy defenses reshaping competition, KED Global has reported. KED Global described Korea as the market most exposed to Chinese EVs as rivals elsewhere build tariff and subsidy barriers. Chinese platforms and parts now underpin all but Hyundai and Kia vehicles in the Korean market, according to the outlet's analysis.

South Korea's automakers are finding it increasingly difficult to agree on how to respond to the growing presence of Chinese electric vehicle makers, KED Global reported. The Chery South Korea entry will test whether the two Korean automakers can hold their home market as Chinese brands shift from exports to a direct local presence in a market where they already supply platforms and parts.