Seoul, Nov 16 (IANS) Hyundai Motor Group said on Sunday it will invest 125.2 trillion won ($86 billion) in South Korea over the next five years in artificial intelligence (AI), robotics and other future technologies as part of its broader push to strengthen its domestic manufacturing base.
The large-scale investment, aimed at securing the group’s “fundamental growth drivers,” comes after the release of the Seoul–Washington joint fact sheet detailing their latest trade agreement that reduced U.S. tariffs on imported Korean cars and auto parts to 15 percent from 25 percent, reports Yonhap news agency.
The investment plan, the largest of its kind in the company’s history, was announced shortly after group executive chair Euisun Chung attended a meeting with President Lee Jae Myung, along with a number of other business leaders here, including Samsung Electronics Co. Chairman Lee Jae-yong, to discuss follow-up measures for the tariff deal.
Chung earlier thanked the president for the trade agreement while meeting Lee on the sidelines of the Asia-Pacific Economic Cooperation forum late last month, the group said in a press release.
The 2026–2030 investment target is more than 40 percent higher than the 89.1 trillion won the company spent on investment over the previous five years, according to Hyundai.
Of the planned amount, 50.5 trillion won will be allocated to future businesses, including AI, software-defined vehicles (SDVs) and robotics. Another 38.5 trillion won will be directed to research and development (R&D) projects, and 36.2 trillion won to production facilities, Hyundai said.
The group also plans to retroactively cover U.S. tariffs imposed this year on key partner companies supplying parts to Hyundai Motor Co. and Kia Corp. plants in the United States.
Analysts estimated the tariff reductions could save Hyundai Motor Group around 4 trillion won in additional costs.
The group said it will continue to support South Korea’s economic growth through large-scale domestic investment and by expanding assistance programs for partner firms to enhance the competitiveness of the local automotive industry.
—IANS
na/
