South Korean auto giant Hyundai Motor Group on Monday announced an unprecedented $85.8 billion investment in the country over the next five years, marking the company’s largest-ever domestic commitment. The move comes shortly after South Korea concluded a new trade deal with the United States.
According to a press release, Hyundai said a major share of the funding will support new businesses built on advanced artificial intelligence technologies, including robotics, in an effort to strengthen Korea’s AI and robotics innovation ecosystem.
The company stated that the investment roadmap underscores Hyundai’s agility in responding to the rapidly changing global business environment. About 40 percent of the total funds will be directed toward developing AI, software-defined vehicles (SDVs), electrification, robotics, and hydrogen technologies.
Hyundai added that the massive injection of capital is expected to help increase exports of South Korea-made vehicles by 13 percent, reaching 2.47 million units by 2030.
The announcement comes on the heels of a similar pledge by Samsung Group, which recently committed $310 billion over the same period, largely targeted at artificial intelligence development. Samsung Electronics remains one of the world’s leading memory-chip makers, supplying core components for the AI industry.
Hyundai Motor Group—which includes Kia—sold more than 7.2 million vehicles globally last year. The investment plans were revealed soon after Seoul secured a new trade agreement with Washington that will reduce tariffs on South Korean exports, including Hyundai vehicles, from 25 percent to 15 percent. However, the rate remains notably higher than the previous 2.5 percent applied under an earlier free trade pact.
