K Car "Continuing Innovation in Domestic Used Car Platforms through IPO"

The Largest Integrated Online and Offline Certified Pre-Owned Car (CPO) Platform in Korea
Expanding Offline Network and Strengthening IT Infrastructure
Demand Forecast on 27-28, Subscription from September 30 to October 1

[Asia Economy Reporter Hyungsoo Park] K Car, the largest direct-operated used car company in Korea, held an online press conference on the 27th to announce its future strategies and vision following its listing on the KOSPI market.

Jung In-guk, CEO of K Car, emphasized, "We will solidify our market dominance based on our unique integrated online and offline platform and certified direct-operated used car business model." He added, "K Car is a game changer that has transformed the market by presenting an innovative e-commerce shopping environment. We will lead the huge domestic used car market, which is expected to grow to 2.96 million units and 50 trillion KRW by 2025."

K Car is the largest direct-operated used car platform company in Korea, launched in October 2018 after being acquired by the private equity fund Hahn & Company in April of the same year. It has built an integrated online and offline platform for direct-operated used cars (CPO) that manages the entire process from purchasing, inspection, management, sales, to after-sales responsibility. It holds the largest inventory of certified used cars in Korea, totaling around 10,000 units, and has established the largest offline network nationwide with 41 locations. Its strengths include a 24-hour online purchasing platform and systems for price and inventory management based on big data.

Based on its core competitiveness, K Car introduced Korea’s first e-commerce sales platform, ‘Buy My Car Home Service,’ in 2015. It has recorded a compound annual growth rate (CAGR) of 45% over the past three years. To activate e-commerce transactions, it was the first in the industry to introduce a ‘3-day refund policy’ allowing 100% refund on used cars, a ‘24/7 immediate payment system,’ and ‘same-day delivery.’ According to market research firm Frost & Sullivan, K Car’s e-commerce market share reached 81% last year.

Thanks to the growth in e-commerce, K Car has shown remarkable performance. In the first half of this year, it achieved record half-year results with sales of 910.6 billion KRW and operating profit of 38.5 billion KRW, increasing by 39.8% and 131.8% respectively compared to the same period last year. Sales from the Buy My Car Home Service reached 322.9 billion KRW, up 65.1% year-on-year, accounting for 40.8% of total retail sales in the first half, emerging as a core competitive strength.

K Car plans to maximize its e-commerce competitiveness based on its initial public offering (IPO). Its main goals include expanding the offline network, strengthening online assets, and advancing warranty and pricing services.

Jung In-guk, CEO of K Car, stated, "K Car has overcome the high e-commerce entry barriers in the used car market through its unique brand trust and innovative attempts." He added, "We will enhance our e-commerce competitiveness to make purchasing used cars online easier and increase corporate awareness and trust," emphasizing, "We will become Korea’s representative used car e-commerce platform."

K Car’s expected public offering price ranges from 34,300 to 43,200 KRW per share, with an expected offering amount between 577.3 billion and 727.1 billion KRW. The number of shares to be offered is 16,830,288. The offering price will be finalized after a two-day book-building process from the 27th to the 28th targeting domestic and foreign institutional investors. Public subscription will take place on September 30 and October 1, followed by listing on the KOSPI market. The lead underwriters are NH Investment & Securities and Goldman Sachs.

This content was produced with the assistance of AI translation services.