Hyundai Motor Group on Sunday announced a massive 125.2 trillion won (USD 86 billion) investment plan for South Korea over the next five years, focusing heavily on artificial intelligence, robotics and other future-oriented technologies to strengthen its domestic manufacturing base.
The announcement comes on the heels of a new Seoul–Washington trade agreement that lowers U.S. tariffs on Korean-made cars and auto parts from 25% to 15%, a move expected to save Hyundai Motor Group an estimated 4 trillion won in additional costs, according to industry analysts.
Hyundai said the 2026–2030 investment blueprint is the largest in the company’s history and represents a more than 40% increase from the 89.1 trillion won invested in the past five years.
The plan was unveiled shortly after Executive Chair Euisun Chung met President Lee Jae Myung and other top business leaders, including Samsung Electronics Chairman Lee Jae-yong, to discuss follow-up actions related to the tariff deal.
Of the total investment, 50.5 trillion won will be dedicated to “future businesses” such as AI, software-defined vehicles (SDVs) and robotics.
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Another 38.5 trillion won will go into research and development, while 36.2 trillion won is earmarked for production facilities.
The company also said it will retroactively cover U.S. tariffs imposed this year on essential partner firms supplying components to Hyundai and Kia plants in the United States.
Hyundai noted that the large-scale investment underscores its commitment to supporting South Korea’s economic growth, including through expanded programmes aimed at strengthening the competitiveness of partner companies across the automotive sector.
