KIA Motors Group

Founded in 1944, Kia Motors Group is the oldest manufacturer of motor vehicles in Korea. Currently, the company sells more than 1.4 million motor vehicles per annum and undertakes motor vehicle assembly operations in 8 nations (Kia Company, n.d.). These fleets of vehicles are serviced and sold via a network comprising of more than 40,000 employees and 3,000 distributors in 172 nations. The company commands USD 172 million in annual revenue.†

Risk Factors and KIA Motorís Global Operations

  1. Foreign Exchange Risks. KIA Motors Group holds derivative contracts as hedging instruments to manage highly risky foreign exchange transactions (Kia Company, 2017). Foreign exchange risks can impact KIA motors in a variety of ways, including, the possible value differences in its end of the year financial reports. There could be sharp changes in the value of assets and liabilities due to foreign exchange fluctuations.   
  2. Volatility in financial markets. The company aims to improve sales and pr...