Renault Korea Motors said Tuesday an affiliate of China's Geely Holding Group will invest in the company as part of their parent firms' agreement signed early this year to develop an environment friendly vehicle.

Geely Automobile Holdings, China's largest privately-owned automotive group, will acquire a 34.02 percent stake in Renault Korea, the South Korean unit of Renault Group said in a statement.

In January, Geely Holding Group and Renault Group announced they will collaborate to launch an all-new vehicle lineup of fuel-efficient hybrid electric vehicles and internal combustion engine models in Korea.

The new vehicles are expected to be produced at Renault Korea's sole plant in Busan, 453 kilometers south of Seoul, with volume production set to begin in 2024.

Renault currently owns an 80.1 percent stake in Renault Korea Motors, and Samsung Card, an affiliate of South Korea's largest conglomerate Samsung, holds a 19.9 percent stake in it.

The French carmaker will remain the majority shareholder in the Korean unit after Geely's stake investment, Renault Korea said. (Yonhap)