Hyundai Motor Group will execute a massive investment of KRW 125.2 trillion in South Korea over the next five years until 2030. This 'largest-ever' investment, increased by more than KRW 36 trillion compared to the previous five years, focuses on the comprehensive restructuring of future industries such as AI, robotics, and hydrogen, and strengthening the electric vehicle production system. Hyundai Motor Group has also decided to fully cover the US tariffs that first-tier suppliers are required to bear this year to support the supply chain.

This large-scale, mid- to long-term domestic investment decision by Hyundai Motor Group aims to secure the group's fundamental growth drivers. It is expected to play a significant role in enhancing the national economy's vitality by strengthening South Korea's status as a global mobility innovation hub, fostering the AI and robotics industries, and developing the green energy ecosystem.

When categorizing the investment amount by type, KRW 50.5 trillion will be allocated to future new business areas such as AI, SDV, electrification, and robotics, while KRW 38.5 trillion and KRW 36.2 trillion will be invested in R&D and capital expenditures, respectively, to continuously enhance the competitiveness of the existing mobility industry.

Above all, this mid- to long-term investment focuses on contributing to the national economy through fostering the domestic AI and robotics industries and developing the green energy ecosystem, thereby revitalizing the regional economy. Over the next five years, intensive investments will be made in new businesses such as robotics based on the advancement of AI technology, contributing to the creation of a domestic AI/robotics innovation ecosystem.

Additionally, the establishment of dedicated electric vehicle factories, the enhancement of production lines at regional production bases for new car launches, and the construction of a PEM water electrolysis plant in the southwest region are expected to play an important role in promoting balanced regional development.

To stabilize the domestic automotive industry ecosystem, Hyundai Motor Group will expand win-win cooperation with its partners, including fully supporting the US tariffs that Hyundai and Kia's first-tier suppliers are burdened with this year.

Along with this, Hyundai Motor Group will further solidify South Korea's status as a central hub for mobility production. The group plans to diversify the export regions of domestic automobile production plants and develop domestic electric vehicle dedicated factories into global mother factories and export bases to significantly increase the overseas export of domestically produced vehicles.

Last year's export of 2.18 million completed vehicles is planned to increase to 2.47 million by 2030, with the export of electrified vehicles expanding more than 2.5 times from 690,000 last year to 1.76 million by 2030.

Focus on AI and Robotics Industry Development and Green Energy Ecosystem Advancement
Promotion of AI Data Centers, Robot Factories, and Water Electrolysis Plants

The investment in fostering the AI and robotics industries for the transformation of the domestic industrial paradigm focuses on establishing AI infrastructure and building an advanced value chain such as AI-utilized robotics. Hyundai Motor Group recently announced plans to strengthen cooperation with NVIDIA while focusing on enhancing AI capabilities in areas such as in-vehicle AI, autonomous driving, smart factories, and robotics.

Initially, the group plans to build a high-power 'AI data center' to process the vast amount of data required for AI model training and operation. The AI data center will secure a petabyte-level data repository capable of storing AI training data generated from physical AI robots and autonomous vehicles.

The establishment of the 'Hyundai Motor Group Physical AI Application Center,' which will play a central role in the development of the physical AI ecosystem, is also being pursued. It is expected to be an innovation demonstration center that verifies the completeness and safety of robots that have learned large-scale behavioral data through AI, thereby conducting final reliability verification before actual industrial deployment.

Hyundai Motor Group will also establish a 'robot finished product manufacturing and foundry factory' based on customer-tailored robot technology secured through the use of physical AI. This will expand the business scope from the production of proprietary robot products to the foundry production of products from small and medium-sized enterprises lacking manufacturing know-how.

At the same time, the group will actively support research and development in the robot parts field by existing automotive parts suppliers. By accelerating the entry of automotive parts suppliers into the robotics business, the group aims to induce a transformation of the domestic industrial paradigm through the localization of core parts and the export of high-value-added products.

To advance the green energy ecosystem, investments will also be made in developing water electrolysis technology for green hydrogen production. Hyundai Motor Group plans to construct a 1GW PEM water electrolysis plant in the southwest region, rich in renewable energy, and promote the establishment of infrastructure such as hydrogen shipment centers and charging stations nearby. Additionally, to realize an early transition to a hydrogen economy in South Korea, the group will build PEM water electrolysis and hydrogen fuel cell component manufacturing facilities to nurture them as global export industries.

In the future, the group plans to actively consider investments in creating a hydrogen AI smart city that integrates Hyundai Motor Group's core new technologies, such as AI, hydrogen, and V2X, in consultation with the government and local governments.
By actively expanding investments in each region, the group aims to promote regional economic revitalization and lay the foundation for the continuous growth and development of South Korea and the mobility industry.

Hyundai Motor Group operates completed vehicle and parts factories in the southeastern region (Ulsan, Changwon), southwestern region (Gwangju, Jeonju), central region (Asan, Jincheon, Seosan, Chungju, Cheonan), Daegyeong region (Daegu, Gyeongju, Gimcheon), and Gyeonggi region (Hwaseong, Gwangmyeong, Pyeongtaek). Over the next five years, continuous investments will be made in line enhancement for the launch of dozens of new models.

New factories will also be constructed. The Hyundai Ulsan EV dedicated factory will be completed next year, and a new hydrogen fuel cell factory in Ulsan is under construction, aiming for operation by 2027. Kia is also accelerating the establishment of a new electric vehicle base dedicated to PBV in Hwaseong, Gyeonggi Province.

Hyundai Steel is pursuing the construction of an LNG self-power plant at the Dangjin Steelworks in Chungnam. Hyundai Engineering is expanding the installation of infrastructure such as charging stations nationwide to eliminate electric vehicle charging blind spots.

Securing Mobility Growth Drivers through R&D
Expansion of Domestic Electric Vehicle Dedicated Factories

Examining Hyundai Motor Group's investment by sector, KRW 50.5 trillion will be allocated to new business investments, KRW 38.5 trillion to R&D investments, and KRW 36.2 trillion to capital expenditures over the five years from 2026 to 2030.

New business investments are executed to enhance the competitiveness of future new businesses. By making strategic investments in advanced fields that will determine future industries, such as AI autonomous driving, AI autonomous manufacturing, AI robotics, electrification, SDV, and hydrogen energy, the group aims to solidify its foundation for sustainable growth.

AI autonomous driving is a technology where AI perceives the surroundings of a vehicle based on sensor data and makes real-time decisions for driving. Hyundai Motor Group is developing autonomous driving technology with the 'Atria AI' based on an end-to-end deep learning model. The group is accelerating the implementation of this technology with 42dot and the autonomous driving joint venture Motional.

In addition, the group is focusing on developing future AI autonomous manufacturing technology that minimizes human intervention and allows AI to operate and optimize processes independently by integrating AI with robotics and digital twin technology.

The group is also accelerating the transition to SDV, as evidenced by the recent announcement of the mobility software technology platform 'Pleaos.' In the second half of 2026, the group plans to unveil the 'SDV Facecar (test car)' with a centralized electric and electronic architecture that organically integrates vehicle hardware and software, and after technology verification, expand its application to mass-produced vehicles.

Hyundai Motor Group is strengthening its electrification capabilities by diversifying powertrains and lineups, including EREVs with a long driving range of over 900 km, and by enhancing the design and development capabilities of various batteries to significantly improve battery product performance and safety through internalization investments in battery technology.

The group is also accelerating the hydrogen energy business to realize an early hydrogen society by solidifying its global leadership in the existing hydrogen electric vehicle field, including the mass production of next-generation hydrogen fuel cell systems and the development of hydrogen buses and trucks, and by building an ecosystem across the entire value chain of hydrogen production, supply, storage, and utilization through various group companies.

R&D investments are allocated to continuously strengthen the competitiveness of the mobility industry and secure the development of new products and core technology areas to flexibly respond to the global market environment.

Hyundai Motor Group is focusing on developing a rear-wheel-based hybrid system and actively promoting region-specific vehicle and technology strategies that reflect the demands and environments of local consumers in major global markets, centered around the Namyang Research Center.

Capital expenditures are utilized for the efficiency of domestic production facilities and manufacturing technology innovation to prepare for changes in the future manufacturing environment, as well as for expanding customer service bases.

Once the Seoul Metropolitan Government completes the licensing procedures, Hyundai Motor Group's Global Business Complex (GBC) will begin construction. Expected to be a global innovation hub and a landmark representing South Korea, the GBC is anticipated to have a large-scale ripple effect, including commercial district revitalization, both during the construction period and after completion.

This large-scale domestic investment by Hyundai Motor Group is analyzed to advance related industries domestically and promote a rapid transition to the future mobility ecosystem of related industries. It is also expected to contribute to enhancing the national economy's vitality through South Korea's leap as a future mobility innovation hub.

Full Support for First-Tier Suppliers' Tariffs
Expansion of Win-Win Cooperation for Partners

Hyundai Motor Group will retroactively apply and fully support the US tariffs that Hyundai and Kia's first-tier suppliers are actually burdened with this year (2025). Separately, various win-win cooperation programs will be prepared to extend benefits to not only first-tier but also second- and third-tier suppliers.

Hyundai Motor Group plans to support the tariffs of suppliers by reflecting the tariffs actually borne by first-tier suppliers, who directly trade with Hyundai and Kia, in the purchase price when supplying parts to Hyundai Motor Group's US production subsidiaries (HMGMA, Hyundai Alabama Plant, Kia Georgia Plant, etc.).

The total support scale will be determined after aggregating the export performance of first-tier suppliers in the future.

Hyundai Motor Group is developing new support programs to strengthen the global competitiveness of suppliers and stabilize the domestic automotive industry ecosystem, encompassing not only first-tier suppliers but also approximately 5,000 second- and third-tier small and medium-sized suppliers, and expanding the support scale.

Additionally, to stabilize the domestic automotive industry supply chain, the group is supporting suppliers in securing raw materials, operating funds, and interest repayment, as well as promoting various global competitiveness enhancement programs for overseas market development and export expansion.

A Hyundai Motor Group official stated, "We plan to contribute to enhancing the vitality of the South Korean economy with the largest-ever mid- to long-term domestic investment and continuous innovation," adding, "We will also focus on strengthening the global competitiveness of the domestic automotive industry by expanding tariff support and win-win cooperation programs for partners."

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