In 1962, as one of the measures to comply its First Five-Year Economic Development Plan, the Korean government passed a law exempting from taxes imported parts to assemble KD cars locally.

[1][2] In 1965, as a result of these incentives, Asia Motor Industries was established in Gwangju through the financial support of entrepreneur Lee Mun-hwan.

[3] In 1973, the South Korean government launched a plan to promote the production of low-cost cars for export.

Asia Motors was unable to satisfy the plan's conditions,[7] losing its car assembly permits,[8] and was purchased by Kia in 1976,[7] as the government promised Kia, in exchange of doing so, a monopoly of the military vehicle production for South Korea.

Asia Motors do Brasil achieved some sales success and, in 1996, it signed an agreement with the Brazilian government for building an assembly plant at Camaçari in exchange of tax exemptions for imported vehicles.