China's Geely Automobile will buy just over a third of Renault's Korea unit for $200 million, potentially helping it boost U.S. exports, and freeing up funds for the French automaker to invest in its electric business.
The sale will deepen cooperation between the two automakers on development of eco-friendly models in Korea, a market dominated by local brands Hyundai and Kia.
For Geely, the deal goes beyond selling cars in South Korea and is a way for the Chinese automaker to export cars built in South Korea to the U.S., a person close to the company said.
"It is an open door into the U.S.," said the person who declined to be named because the plans are confidential.