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New Kia vehicles are stored at a factory located in Ujeong-eup, Hwaseong-si, Gyeonggi Province. / Reporter Nam Hyun-soo

At a factory site in Ujeong-eup, Hwaseong-si, Gyeonggi Province, on the 12th, a vast 39,377-square-meter parcel of land was being used as a storage lot for new Kia vehicles. In the open space in front of the factory buildings, brand-new models including the EV3, EV4, and Carnival were lined up in neat rows. As land permitted strictly as a factory facility is virtually being utilized as an open-air vehicle storage depot, controversy has erupted over zoning violations.

The wide open area fronting the buildings was densely packed with automobiles. The cars were arranged in multiple parallel rows at regular intervals, with driving lanes established between them to facilitate movement.

The parked vehicles caught the eye far before any of the factory buildings or machinery. Trailers loaded with cars were also spotted entering the premises and unloading brand-new vehicles. Approximately 2,000 new Kia vehicles were identified as being stored on the grounds.

The registered land category for this holding area is classified as factory land. Under prevailing law, utilizing a factory site for staging and storing new vehicles is unlawful.

In reality, however, because new vehicles have been stored on the factory parcel in massive volumes, controversy is mounting that the property is not being utilized in accordance with the terms of its factory establishment approval.

Upon receiving civil complaints, Hwaseong City Hall recently completed an on-site inspection and dispatched an official notice demanding corrective action to the landowner, Suwon Comprehensive Junkyard Co., Ltd.

The city maintains that factory-zoned land must be used strictly for factory purposes and related auxiliary facilities. Officials explained that using the site exclusively as a vehicle depot is improper and may provide legal grounds for the cancellation of its factory registration under relevant statutes and permit conditions.

An official from Hwaseong City Hall stated, "Factory-designated land must be utilized in accordance with its intended purpose as a factory and its associated auxiliary facilities. It cannot be used as an open-air staging depot for new vehicles, and this could constitute grounds for revoking factory registration."

Suwon Comprehensive Junkyard maintains that it made the factory parcel temporarily available at Kia's request. While the initial plan was to utilize the equipment holding area designated for vehicle parking, the landowner yielded the central factory ground because Kia urgently required space to stage its vehicles. The junkyard asserted that no separate written agreement was executed and no monetary consideration was exchanged.

The landowner stated that following the receipt of the city's corrective notice, vehicles are being moved out, with plans to clear every vehicle by the 30th.

An official from Suwon Comprehensive Junkyard said, "We temporarily allowed the use of the factory parcel because Kia urgently needed a location to place vehicles. We plan to completely clear all vehicles by the 30th."

Against this backdrop, the ethical management principles that Kia has long championed have come under intense scrutiny.

President and CEO Song Ho-sung has repeatedly emphasized compliance and ethical management. In its 2026 Sustainability Report published in July, Kia positioned transparent governance as a foundational pillar of its ESG management framework.

In the report's opening remarks, CEO Song likewise expressed his commitment to contributing to solutions for global environmental and social challenges grounded in transparent governance and action on the climate crisis.

However, as the mass storage of brand-new vehicles on factory-zoned land came to light as an unauthorized violation, analysts note that the ethical management long underscored by Song is being put to the test.

A Kia official stated, "We have no knowledge of this and are looking into the matter."

                                                                                                             Han Dae-ui  

                                                                                                          Nam Hyun-soo  

                                                                                                            Kim Jung-kyu