To receive a cash loan from the government, Shinjin Motor claimed the Jeeps would be supplied to the Republic of Korea Reserve Forces; however, the company also had the intention of selling them to the public market.
However, the V6 engine became a burden rather than beneficial for the military as it consumed more fuel, and none of the V4 models experienced underpower problems while operating on hilly terrain during the Korean War.
In the same year, the South Korean Ministry of National Defense reported that the military must shift from U.S. aid to self-procurement due to the change in the United States' policy.
When President Park received the report, he decided to take advantage of the current situation to pursue the domestic development of such vehicles.
[1][14] Since then, Shinjin Jeep and Kia Industries have competed to create a new domestic multi-purpose vehicle to replace all compact-sized cars operated by the military.
Eventually, Asia Motors was selected as the provider in April 1978, and mass production of the K111 began in July.