This is what I do in several of my backend Kotlin code bases and it's worked very well. I've also heard it called "distributed monorepo". There are a handful of ways to share code, and the tradeoffs of this approach are very manageable.

The biggest downside I've encountered is that you need to figure out the deployment abstraction and then figure out how that impacts CI/CD. You'll probably do some form of templating YAML, and things like canaries and hotfixes can be a bit trickier than normal.