I’ve been repairing automotive air conditioning for over 40 years.
And that is definitely damage from road debris.
And it is a more common occurrence than you think.
Tester
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Original poster came to CarTalk for advice from experienced professionals and DIYers… and then argues with them because we agree with the dealer.
Arguing with us is not going to change the dealer’s mind.
And if you think the car is defective either sue Kia or sell the car and buy a better one.
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This seems like a sensible next step. If they agree with the other dealer and most of the posters here, then accept the diagnosis and pay for the repair.
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Is that a leak or just a dent? Your insurance company may want pictures proving this is leaking or send an inspector. What if the condenser is replaced and there is still refrigerant loss?
This is what an active leak looks like, the stream of refrigerant is spraying up and to the right:
A diagnosis made in haste, you rushed them, the technician knows that an a/c repair can’t be completed in one day and there is no pay for the inspection. Have your home dealer inspect the a/c system.
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The biggest problam is [ KIA ] KILLED IN ACTION ]. 
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@Nevada_545 is right, the condenser leak isn’t covered only if that’s the actual leak location. I’d want proof of that, there’s no hole visible in the photo.
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judging by the rest of the damage on the condenser and the up front comment by the service advisor, I’d wager a guess that this vehicle is extra susceptible to this kind of damage. Some vehicle designs just lend themselves to more condenser damage than others.
on my big trucks at work, i install mesh screens to help cut down on this kind of damage.
having said all that- I agree with @Nevada_545 and @texases that I do not see a hole in the circle of your photo.
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Yes. The fins are just a means to improve the thermal conduction path from the tubes carrying refrigerant to the air passing through. They can be bent and there will be no leak. When the tubing carrying the actual refrigerant are damaged, it will leak out and cause failure when enough leaks out.
A slow leak will not always be visible to the eye. Even so, it may already be gone and you won’t see that fume cloud in the picture. If a hole is not visible, it may take more investigating to prove where the damage exists. But the prime suspect is that element of the system exposed to road debris. And it doesn’t take a rock truck losing its load to have that happen.
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The leak is probably at the very top of the dented line where it is pinched together and meets the fins.
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My brother was a Spec/5 in Vietnam, and because he had to record “KIA” hundreds of times in Army personnel records, he told me that he could never bring himself to own a car bearing the letters KIA.
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[quote=“VDCdriver, post:32, topic:191770”]
he could never bring himself to own a car bearing the letters KIA.
[/quote]A man after my own heart I was never military because of be 90% blind in one eye but have known of people KIA and will refuse to even get in one.
I had a condenser leak from road debris that was less noticeable than the OP’s , the only way it could be seen ( besides the little dent) was with dye, it was such a small hairline crack.
I replaced the condenser and installed screen door screen over the new one four years ago and it still looks like new.
…….it doesn’t take much to cause a leak in soft aluminum.
If this is road debris damage, it might be covered by your auto insurance just like a cracked windshield could be. Try it out on them and see what happens. Use the investigation from the dealer to back you up.
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Try the insurance method. If no joy, go back to the dealership, give them a chance to change their minds. IMO it’s reasonable to expect a new car’s design to be robust enough to not create an AC leak due to a small pebble hitting the condenser. A big rock, yes, but in that case the car should be designed w/a shield to prevent big rocks from hitting the condenser.
Worse case, nobody helps. OP still has a backup plan, just choose a different manufacturer for their next vehicle purchase.
Disclaimer: I’ve never owned a vehicle w/AC, so it is possible, even with a perfect vehicle design, this sort of thing cannot be prevented. In that case, not much can be done other than paying up to repair the AC every time it happens. Or live without AC.
I’ve never owned a vehicle w/o A/C, dating back to 1971.
No insurance company is going to cover a damaged condenser from road debris.
They’ll cover a damaged windshield because it’s a safety issue.
Tester
You definitely have a lot of vehicle AC experience. Just curious, have you ever had this same problem, a rock thrown up from the road hits your vehicle’s condenser and creates a refrigerant leak?
The pictures in post 26 were for an insurance claim. Condenser replacement is usually over $1200.
Yep, ‘comprehensive insurance’ would cover it, if the OP has that. Less the deductible, of course.
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