Kia strengthens its presence in Kazakhstani market

The South Korean automobile giant plans to launch production of auto parts in Kazakhstan. The idea of establishing such a production has been discussed by President Kassym-Jomart Tokayev and Kia Motors CEO Song Ho-Sung during their meeting in Astana.

«Mr. Song Ho-Sung told the president what the company is doing to improve its supply chains. For instance, the car company has signed a memorandum of intent with Seyong EHWA (a global auto part supplier for Kia), which is going to launch auto part manufacturing in Kazakhstan,» the president’s press service reported in a statement.

In August 2023, Kia transferred part of its Russian office to Kazakhstan. The new company Kia Russia and the CIS in the Republic of Kazakhstan was registered in Astana.

In the same month, on August 25, Deputy Prime Minister of Kazakhstan Roman Sklyar and President of Kia Corporation in the CIS Sang Gwon Jung signed founding documents for a new joint venture called Kia Qazaqstan.  

In mid-November 2023, the construction of a new Kia automobile factory in Kostanay started. This is the first project of this size outside of South Korea for the company.

The number of investments into the project is estimated at more than $203.7 million. Once the manufacturing site is fully operational, it will produce 70,000 cars per year, including 50,000 cars produced by СKD assembly with a high rate of local content. The project will also create 1,500 new jobs.