Together and Apart:
Finding New Paths

Since developing its first in-house engine in 1973, Kia continued to build
technological capability. Even in the midst of a financial crisis, Kia proved its
technical prowess in January 1998 by unveiling Carnival—the world’s first minivan equipped
with an independently developed 2.9-liter diesel engine.

With powerful performance,
excellent fuel efficiency, and sedan-level quietness, Carnival was an instant success,
pioneering the minivan market in Korea. In 1999, the arrival of Carstar and
Carens completed Kia’s minivan trifecta, driving the growth of domestic demand and
playing a crucial role in Kia’s recovery.

In January 2000, Kia emerged from court receivership just 15 months after being acquired by
Hyundai Motor. Behind this swift recovery was the leadership of Honorary Chairman
Chung Mong-koo, who drove bold restructuring and integration initiatives.
The two companies adopted a “together yet apart” approach—competing and cooperating
at the same time. This unprecedented model created powerful synergies:
while sharing platforms and resources, Kia and Hyundai preserved distinct brand identities
through differentiated design.

Later that year, Hyundai’s automotive division broke away
from Hyundai Group, and Hyundai Motor Group was officially formed. As Korea’s only
automotive group and a global-scale manufacturer, its birth laid the foundation for the
long-term growth of Korea’s auto industry.

To reestablish its global presence, Kia first embarked on a company-wide drive to
improve quality. By placing quality above all, and launching initiatives such as the
Quality Situation Room, Kia earned the Korea Quality Award in 2001—the nation’s highest honor
in the large enterprise category. Building on this achievement, Kia accelerated its global strategy.


In China, a local joint venture established full-scale vehicle production and launched
Kia’s first passenger car for the Chinese market, Qianlima, in November 2002. Within just two years, sales surpassed
100,000 units, proving its competitiveness.

In Europe, Kia reorganized its network by
transitioning from dealership-based sales to corporate subsidiaries, thereby strengthening
its brand presence through direct management. At the same time, Kia began construction of
its plant in Slovakia, marking a decisive step toward localized production.

As part of Hyundai Motor Group, Kia gained new momentum and began launching vehicles
that exceeded market expectations. Sorento, an SUV that combined safety with
refined style, Opirus, a large premium sedan, and Cerato, a compact sedan, all won over diverse
customer segments, while Morning captivated younger consumers.


Backed by a competitive lineup, Kia strengthened its global presence, surpassing
a cumulative production of 10 million units in 2002¹ and reaching sales of
1 million units in North America in just nine years by March 2003².