KG Mobility signs EU carbon border rules pact with Husi Partners
In short
KG Mobility (KGM) signed a memorandum of understanding with carbon management firm Husi Partners (후시파트너스) to respond to the EU's Carbon Border Adjustment Mechanism (CBAM), the company said on the 20th. The two will build a per-part emissions calculation system and a base for collecting and verifying supply chain carbon data.
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KG Mobility (KGM) signed a memorandum of understanding with carbon management firm Husi Partners (후시파트너스) on responding to the EU's Carbon Border Adjustment Mechanism (CBAM), the company said on the 20th. [ 1 , 2 , 3 , 4 ]
The signing ceremony was held on the 19th at Husi Partners in Yeongdeungpo district, Seoul. Korea Economic Daily and ZDNet Korea said Lee Yong-heon (이용헌), head of KGM's research planning center, and Lee Haeng-yeol (이행열), chief executive of Husi Partners, were among those attending. [ 1 , 2 , 3 ]
Under the agreement, the two companies will build a per-part emissions calculation system and a base for collecting and verifying supply chain carbon data. KGM plans to link this step by step to management of CBAM certificate costs. [ 1 , 2 , 3 , 4 ]
CBAM puts a cost on the carbon emitted in producing goods imported into the EU. Outlets said it has applied since January to six product groups including steel and aluminium. Korea Economic Daily, ZDNet Korea and Maeil Business said a plan to extend it to car parts from 2028 is being pursued. Chosun Ilbo said car-related items are not yet covered, and that the European Commission has submitted a bill to add car parts from 2028. [ 1 , 2 , 3 , 4 ]
Covered products require CBAM certificates matching their emissions. If actual emissions data cannot be provided, EU country default values apply. Korea Economic Daily and Chosun Ilbo said the surcharge on these defaults rises from 10% in 2026 to 30% from 2028; ZDNet Korea attributed that figure to KGM. Korea Economic Daily wrote that the EU introduced CBAM on the 19th, which differs from the other outlets' account of application since January. [ 2 , 3 , 4 ]
Since July, KGM and Husi Partners have collected data from key suppliers of steel and aluminium used in models exported to Europe. The data covered material input, process energy and proof of origin, and was used to calculate product-level embedded emissions under EU rules. Lee Yong-heon said: "We will extend the calculation system prepared through the pilot across the supply chain to raise export competitiveness." [ 1 , 3 , 4 ]
Why it matters
The outlets present the deal as KGM's preparation for EU carbon rules that apply to steel and aluminium now and that the EU is moving to extend to some car parts from 2028. KGM says the aim is to improve its export competitiveness.
Key facts
- KG Mobility (KGM) signed a memorandum of understanding with carbon management firm Husi Partners on EU CBAM compliance, the company said on the 20th. [ 1 , 2 , 3 , 4 , 5 ]
- The signing ceremony was held on the 19th at Husi Partners in Yeongdeungpo district, Seoul. [ 1 , 3 ]
- The companies will build a per-part emissions calculation system and a base for collecting and verifying supply chain carbon data, linked step by step to management of CBAM certificate costs. [ 1 , 2 , 3 , 4 ]
- Since July KGM and Husi Partners have collected material input, process energy and proof-of-origin data from key suppliers of steel and aluminium used in European export models and calculated embedded emissions under EU rules. [ 1 , 3 , 4 ]
- CBAM has applied since January to six product groups including steel and aluminium; the EU is pursuing an extension to car parts from 2028. [ 1 , 2 , 3 , 4 , 5 ]
- If actual emissions data cannot be provided, EU country default values apply, with a surcharge rising from 10% in 2026 to 30% from 2028. [ 2 , 3 , 4 ]
Confirmed by several sources
- KGM and Husi Partners signed an MOU on responding to the EU Carbon Border Adjustment Mechanism. [ 1 , 2 , 3 , 4 ]
- The ceremony took place on the 19th at Husi Partners in Yeongdeungpo district, Seoul. [ 1 , 3 ]
- KGM and Husi Partners have collected supplier data since July and calculated product-level embedded emissions under EU rules. [ 1 , 3 , 4 ]
- KGM executive Lee Yong-heon said the calculation system built through the pilot would be extended across the supply chain to raise export competitiveness. [ 1 , 3 , 4 ]
- The default-value surcharge applied when actual emissions data is missing rises from 10% in 2026 to 30% from 2028. [ 2 , 3 , 4 ]
Still unclear
- When the EU introduced CBAM. One outlet says the EU introduced it on the 19th, while the others say it has applied to six product groups since January.
- Whether car parts will be added to CBAM from 2028. The outlets describe it only as a plan being pursued; Chosun Ilbo says the European Commission has submitted a bill but car-related items are not yet covered.