On April 15th, Kia Motors announced its medium-term business strategy extending to 2003 and its determ-
ination for corporate renewal. By 2003, Kia Motors has the goal of emerging as a globally competitive auto-
maker with an annual production capacity of 1.3 million units. It also aims at:
- Providing its employees with a new sense of mission and hope, earning the trust and loyalty of its cus-
tomers and being fully responsive to their needs.
- Securing a 30 percent domestic market share and the creation of a new corporate culture through con-
tribution to the development of society.
Kia's mid-term business strategy is based on the three key concepts: business vision, employee vision,
and social vision. Under its new business vision, the company is determined to focus all its resources to
emerge as one of the most competitive global automakers. It is also committed to a program of corporate
renewal and restructuring into a stronger, financially sounder company offering its employees a new sen-
se of hope and mission through employee vision. Lastly it will do its best to develop into a mature socially
responsible corporate citizen by fulfilling its responsibilities to the communities wherever Kia conducts
business and satisfying customers' needs.
In announcing the medium-term business vision, Kia is not only looking to win back the trust of its custom-
ers but is also securing the foundation for its second take-off.
At the first stage, Kia's business strategy will focus on increasing its domestic market share to 30 percent
and the export of 800,000 cars per annum. Company management believes the successful achievement
of this initial target is critical to advancing the program of business normalization.
At the second stage covering the 2000 to 2003 period, Kia's business strategy will turn to developing Kia
into a more competitive global player with an annual sales of 1.3 million units comprising 540,000 units in
the domestic market and 760,000 units in overseas markets.
During the first stage, all Kia staff will focus their energies on the implementation of an all-out sales drive
as well as management innovation. To this end, everyone is united to give their best effort to implement
more aggressive sales tactics, to promote Kia's new corporate image and to realize the punctual delivery
of products while at the same time changing the corporate structure with the aim of boosting sales results.
In addition, greater emphasis will be placed on more responsible management practices within each divi-
sion with greater accountability for business results while at the same time improving management efficie-
ncy by accelerating a wide range of management innovation programs in all corporate operations.
In particular, company management will maximize its efforts to make the best use of the synergistic effects
resulting from its merger with Hyundai Motor.
During the second stage, company management will focus on the improvement of Kia's financial structure
while at the same time strengthening its domestic marketing network to secure more enhanced sales com-