Seoul: Hyundai Motor Group has unveiled plans to invest an unprecedented 125.2 trillion won (approximately $86.5 billion) in South Korea over the next five years, marking one of the largest corporate investment commitments in the country’s history. The ambitious plan aims to strengthen Hyundai’s domestic operations, advance research and development, and expand production capacities in line with the global shift toward electric and smart mobility.
The announcement comes shortly after the South Korea–United States trade agreement, which reduced U.S. tariffs on Korean-made vehicles from 25% to 15%. Hyundai officials cited the deal as a key factor in bolstering confidence for further investment, as it creates a more stable export environment while encouraging the company to innovate and enhance domestic production.
Under the new investment strategy, 50.5 trillion won will be directed toward artificial intelligence and future business ventures, signaling Hyundai’s commitment to autonomous driving, connected vehicles, and next-generation mobility solutions. In addition, 48.4 trillion won is earmarked for research and development, focusing on advanced vehicle technologies, battery systems, and sustainable mobility solutions, ensuring the company remains at the forefront of automotive innovation.
Another 36.2 trillion won will be allocated to modernize production facilities, expand manufacturing capabilities, and develop new infrastructure, including a signature corporate skyscraper in Seoul. This move reflects Hyundai’s dual focus on technological advancement and operational efficiency while reinforcing South Korea as a central hub for global automotive manufacturing.
Chairman Euisun Chung highlighted the significance of domestic growth in the face of fluctuating international trade conditions. While the reduction of U.S. tariffs provides a favorable framework for exports, Hyundai is prioritizing investment in local operations and supporting domestic suppliers to ensure resilience across its supply chain.
President Lee Jae Myung met with Hyundai executives on the day of the announcement, emphasizing the alignment of Hyundai’s investment with South Korea’s broader economic objectives. Officials underscored that this substantial capital infusion will drive job creation, boost innovation, and solidify South Korea’s position as a global leader in electric and smart vehicle technologies.
Hyundai’s commitment illustrates a strategic vision that merges corporate growth with national economic development. By concentrating resources on AI, research and development, and production infrastructure, the company aims to lead the transformation of the automotive industry while cementing South Korea’s role as a pivotal center for innovation and global competitiveness.