Hyundai pledges record $85.8 bn investment in South Korea

AFP | Seoul

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South Korean auto giant Hyundai Motor Group  pledged yesterday an unprecedented $85.8 billion investment in the country over the next five years, a move that comes on the heels of Seoul’s trade deal with Washington.

Hyundai called it “the company’s largest-ever domestic investment commitment”.

“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 and Robotics innovation ecosystem,” the company said in a press release.

The roadmap “highlights the Group’s agility in actively responding to the rapidly changing global business environment”, it added.

Around 40% of the total spending will go into developing “AI, software defined vehicles (SDVs), electrification, robotics, and hydrogen”, the company said.

It added that the investment would help boost exports of South Korea-made vehicles by 13 percent to 2.47 million units by 2030.

The announcement follows a similar pledge by Samsung Group, another major conglomerate whose flagship firm is Samsung Electronics, which vowed to invest $310 billion over the same period, largely in artificial intelligence technologies.

Hyundai Motor Group, which includes Kia, sold more than 7.2 million vehicles last year in South Korea and overseas combined.