On the Dash:
- Hyundai Motor Group plans $86.5 billion (125 trillion won) in domestic investment over five years, up from $61.3 billion (89.1 trillion won).
- The company will focus on AI, R&D, production optimization, and EV factories to expand exports.
- U.S.-South Korea trade deal, reducing tariffs to 15% enables Hyundai to diversify exports and support suppliers.
Hyundai Motor Group will invest $86.47 billion (125.2 trillion won) in South Korea from 2026 to 2030, the automaker announced Sunday following a U.S.-South Korea trade deal. The agreement cuts tariffs on South Korean autos exported to the United States from 25% to 15%, prompting Hyundai and its affiliate Kia Corp to expand domestic production and exports.
The investment marks a significant increase from the $61.3 billion (89.1 trillion won) spent from 2021 to 2025. Hyundai plans to allocate $35 billion (50.5 trillion won) to artificial intelligence and other future business initiatives, $26.7 billion (38.5 trillion won) for research and development, and $25.9 billion (36.2 trillion won) to optimize production facilities and construct a new skyscraper.
Hyundai executives emphasized that the investment will also help support South Korean auto parts suppliers impacted by U.S. tariffs. The group aims to diversify export markets, boost domestic production, and more than double electric vehicle exports through new factories by 2030.
The announcement came after South Korean President Lee Jae Myung met with Hyundai Motor Group Chairman Euisun Chung and other business leaders. The trade deal includes South Korea’s commitment to invest $350 billion in U.S. strategic sectors, strengthening bilateral economic ties while reducing the tariff burden on automakers.
Hyundai’s domestic investment strategy reflects a dual focus on future mobility technologies and operational efficiency. By directing funding to AI and R&D, the automaker is positioning itself to remain competitive in electric vehicles and next-generation mobility solutions. Investments in production facilities will streamline operations and increase output, ensuring the company can meet growing global demand while leveraging tariff reductions.
