On January 25, according to Yonhap News Agency, South Korean automaker Kia Motors announced a 21% year-on-year decline in net profit for the fourth quarter of 2023. The net profit dropped from 20.4 trillion Korean won in the same period of 2022 to 16.2 trillion Korean won (approximately 12 billion USD).
A spokesperson for Kia Motors stated, "Increased incentive measures, an unfavorable exchange rate (as the Korean won strengthened against the US dollar), and rising labor costs all impacted quarterly performance." Data from the Bank of Korea showed that the average exchange rate of the US dollar to the Korean won decreased from 1,344.8 Korean won in the previous quarter to 1,289.4 Korean won in the fourth quarter of the last year.
In the fourth quarter of 2023, the company's operating profit was 24.7 trillion Korean won, a 6% decrease compared to the same period in 2022, which was 26.2 trillion Korean won. The sales revenue increased from 231.6 trillion Korean won in the same period to 243.3 trillion Korean won, marking a 5% year-on-year growth.
For the entire year of 2023, Kia Motors recorded a 15% growth in sales revenue to 99.81 trillion Korean won, benefiting from an improved product lineup and an increase in the average selling price. The operating profit surged by 61% from 7.23 trillion Korean won in 2022 to 11.61 trillion Korean won. The net profit also grew by 62%, reaching 8.78 trillion Korean won, compared to 5.41 trillion Korean won in 2022.
Looking ahead, Hyundai Motor Group stated that despite the slowdown in demand for electric vehicles, Kia Motors will continue to expand its electric vehicle lineup. It plans to introduce the EV3 compact SUV in the domestic market this year and aims to export it to "strategic" Western European markets. Additionally, the company plans to launch the EV4 midsize SUV in the South Korean market next year, while the schedule for the introduction of the EV5 in the South Korean market remains undetermined, although it was initially launched in China last year.
In the hybrid vehicle segment, Kia plans to introduce hybrid versions of the Carnival and Selton models to compete with Japanese competitors such as Toyota in the South Korean market.
For the year 2024, Kia's annual sales revenue and operating profit targets are set at 101.1 trillion Korean won and 12 trillion Korean won, respectively. The company aims to achieve an operating profit margin of 11.9%, surpassing the record-setting 11.6% from the previous year.
