Hyundai Motor Group has announced a significant investment in South Korea, pledging $85.8 billion over the next five years. This commitment is the company’s largest-ever domestic investment and comes on the heels of a new trade deal between Seoul and Washington. The investment will focus on advanced technologies, including artificial intelligence, robotics, and electrification, with around 40% of the total spending allocated to these areas.
The company stated that the investment will contribute to the development of Korea’s AI and robotics innovation ecosystem, highlighting its agility in responding to the rapidly changing global business environment. The spending will also help boost exports of South Korea-made vehicles by 13% to 2.47 million units by 2030.
This announcement follows a similar pledge by Samsung Group, which vowed to invest $310 billion over the same period, largely in artificial intelligence technologies. Samsung Electronics, a major player in the memory-chip industry, provides crucial components for the AI industry and its infrastructure.
Hyundai Motor Group, which includes Kia, sold over 7.2 million vehicles last year in South Korea and overseas combined. The investment commitments come after Seoul’s conclusion of a new trade deal with Washington, which reduces tariffs on South Korean exports, including Hyundai vehicles, to 15% from 25%.
Although the new rate is still higher than the previous 2.5% applied under an existing free trade pact, the investment is expected to have a positive impact on the country’s economy. The move demonstrates the company’s commitment to innovation and its role in driving growth in South Korea’s automotive and technology sectors.
The investment will also focus on developing software-defined vehicles, hydrogen fuel cell technology, and other emerging technologies. With this significant commitment, Hyundai Motor Group is poised to play a major role in shaping the future of the automotive industry in South Korea and beyond. The company’s investment is expected to have a lasting impact on the country’s economy and its position in the global market.