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Technology & Innovation Hyundai Motor Group to Invest KRW 125.2 Trillion in Korea Over Next Five Years to 2030
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Technology & Innovation Hyundai Motor Group to Invest KRW 125.2 Trillion in Korea Over Next Five Years to 2030
SEOUL, November 16, 2025 – Hyundai Motor Group (the Group) announced today it will invest KRW 125.2 trillion in South Korea over the five-year period from 2026 to the end of 2030, representing the company's largest-ever domestic investment commitment.
The investment plan significantly expands on the Group's previous commitment, exceeding the KRW 89.1 trillion investment in Korea from 2021 to 2025 by KRW 36.1 trillion. The new five-year commitment marks an annual average investment of KRW 25.04 trillion over this future period, and a more than 40 percent increase from the annual average over the past five years of KRW 17.8 trillion.
This significant domestic investment strategy highlights the Group’s agility in actively responding to the rapidly changing global business environment, positioning the Group effectively for long-term growth. The plan aims to strengthen South Korea's status as a global mobility innovation hub as well as stimulate broader economic growth by advancing the AI/Robotics industry and progressing the green energy ecosystem.
The KRW 125.2 trillion investment will be allocated across three key areas:
A significant portion of the investment will focus on new businesses based on advanced AI technologies, such as robotics, contributing to the development of Korea’s AI/Robotics innovation ecosystem.
The Group is also expected to play a key role in promoting balanced regional development through the establishment of EV-dedicated facilities and the upgrading of production lines at regional manufacturing facilities for new model launches, as well as the construction of a PEM electrolyzer plant in the southwestern region.
Through this mid-to long-term investment, Hyundai Motor Group will support Korea in further strengthening its position as a key global hub for mobility production. The Group plans to diversify export destinations for vehicles produced at domestic plants and significantly expand exports by developing Korea’s EV-dedicated facilities into global export bases.
The Group aims export 2.47 million units by 2030, up from 2.18 million units in 2024, and expand EV exports – including EVs, PHEVs, HEVs, and FCEVs – from 690,000 units to 1.76 million units over the same period.
Focused Investment in Korea’s AI/Robotics Industry and Green Energy Ecosystem
To drive a paradigm shift in the domestic industrial landscape, the Group’s investments will nurture the AI/Robotics industry. This will focus on building AI infrastructure and expanding advanced ecosystems, such as AI-powered robotics.
Hyundai Motor Group recently announced its strengthened collaboration with NVIDIA and is actively enhancing its AI capabilities across in-vehicle AI, autonomous driving, smart factories, and robotics.
To process the massive amount of data required for AI model training and operations, the Group is reviewing the establishment of a high-power AI data center. The data center is planned to feature petabyte-scale storage capacity for AI training data generated by physical AI robots and autonomous vehicles.
The Group is also pushing forward the establishment of the ‘Hyundai Motor Group Physical AI Application Center’, which will play a central role in advancing the physical AI ecosystem. This center will verify the completeness and safety of robots trained on large-scale behavioral data through AI and is expected to serve as an innovation testbed to ensure reliability before deployment in real-world industrial settings
Based on customer-tailored robotics technologies developed through physical AI, Hyundai Motor Group will build a robotics manufacturing and foundry facility. This will enable the Group to produce complete robotics systems in-house and offer foundry services for SMEs lacking manufacturing expertise.
In parallel, the Group will actively support R&D in robotics components by existing automotive parts suppliers. By accelerating the entry of automotive parts suppliers into the robotics sector, these suppliers are expected to contribute to the localization of core components and the export of high-value-added products, further accelerating Korea’s industrial transformation.
The Group is also planning investments in the development of water electrolyzers for green hydrogen production to enhance the green energy ecosystem.
Hyundai Motor Group plans to build a 1GW PEM electrolysis plant in the southwest, capitalizing on the readily available supply of renewable energy, along with nearby hydrogen shipment centers and refueling stations.
To accelerate Korea’s transition to a hydrogen economy, the Group will also establish facilities for manufacturing PEM electrolyzers and hydrogen fuel cell components, positioning these operations as a global export business.
Hyundai Motor Group also plans to actively consider investments – through consultation with the Korean government and local authorities – to establish a hydrogen AI Smart City that integrates the Group’s core technologies, including AI, hydrogen energy, and V2X.
Through expanded investment across various regions, Hyundai Motor Group aims to stimulate local economic growth and lay the foundation for the sustainable growth of Korea and its mobility industry.
Currently, Hyundai Motor Group operates vehicle and parts manufacturing plants in all key geographical regions across Korea. Over the next five years, the company will continue to invest in production line optimization to accommodate the launch of new vehicle models.
New plants are also under construction. Hyundai’s dedicated EV plant in Ulsan will be completed next year, and a new hydrogen fuel cell production facility is scheduled to begin operations in 2027. Kia has completed a new dedicated EV plant for PBVs in Hwaseong, Gyeonggi Province, and is preparing to commence operations.
Hyundai Steel Company is building an LNG power plant at its Dangjin steelworks, with KRW billions also being invested in blast furnace upgrades. Hyundai Engineering Co. Ltd. is expanding nationwide infrastructure, such as EV charging stations, to address underserved areas.
Investment Strategy and Timeline
Hyundai Motor Group’s investment plans by sector from 2026 to 2030 include: KRW 50.5 trillion in future business investment, KRW 38.5 trillion in R&D investments, and KRW 36.2 trillion in capital investments.
Future business investment will be allocated in key technological areas, such as AI-powered autonomous driving, AI-driven autonomous manufacturing, AI robotics, electrification and SDVs, and hydrogen energy to solidify the Group’s foundation for sustainable growth. Key areas of future business investment include:
R&D investment will focus on strengthening the Group’s competitiveness in the mobility industry and developing new products and core technologies to flexibly respond to global market conditions.
Capital investment will be directed to enhance production optimization in Korea, innovation in manufacturing technology, and the expansion of customer service hubs.
Hyundai Motor Group expects the large-scale domestic investment to advance related industries, contribute to strengthening Korea’s position as a global mobility innovation hub, and further energize the national economy.
Seoyong Choi
seoyong.choi@hyundai.com
Global PR Strategy & Planning · Hyundai Motor Company
Disclaimer: Hyundai Motor Group believes the information contained herein to be accurate at the time of release. However, the company may upload new or updated information if required and assumes that it is not liable for the accuracy of any information interpreted and used by the reader.
About Hyundai Motor Group
Hyundai Motor Group is a global enterprise that has created a value chain based on mobility, steel, and construction, as well as logistics, finance, IT, and service. With about 250,000 employees worldwide, the Group’s mobility brands include Hyundai, Kia, and Genesis. Armed with creative thinking, cooperative communication and the will to take on any challenges, we strive to create a better future for all.
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