South Korean automaker Hyundai Motor Group (HMG) announced that it plans to invest KRW 42 trillion (US$ 27.5 billion) in the next ten years to establish an advanced technology development hub in the country’s south-eastern Yeongnam region, with the aim of accelerating the development in AI-defined vehicles (AI-DVs) with Level 4 or higher automation, manufacturing AI, aerospace, and next-generation energy infrastructure.
HMG confirmed that it has signed a memorandum of understanding (MOU) with South Korea’s Ministry of Finance and Economy, Ministry of Science and ICT, Ministry of Trade, Industry and Resources, and Ministry of Planning and Budget, along with the local authorities of Busan, Daegu, Ulsan, Gyeongnam Province, and Gyeongbuk, to launch the investment programme.
The automaker said that the investment is aimed at helping it strengthen “fundamental growth drivers and accelerate its transformation into a future technology company that aims to change the quality of human life. Alongside the ongoing Saemangeum project, HMG will develop an advanced industry ecosystem encompassing Manufacturing AI, aerospace and space industries, and energy infrastructure to foster balanced regional development, create jobs, and enhance Korea’s economic vitality.”
HMG’s vice chairman, Jaehoon Chang, said in a statement: “By making additional investments in new business sectors across the Yeongnam region, which is the foundation of Hyundai Motor Group, we will develop it into a key hub for future advanced industries and contribute to strengthening South Korea's industrial competitiveness.”
HMG confirmed that the programme involves making strategic investments across the Yeongnam region in five key areas, including:
- establishing an AI-DV manufacturing hub
- creating core components clusters
- manufacturing AI-based innovation
- future aerospace and space
- sustainable energy infrastructure development
As part of the programme, HMG plans to accelerate the transformation of Hyundai Motor’s Ulsan manufacturing complex, which it described as the world's largest single integrated automotive manufacturing facility, into a strategic centre for the future mobility industry. HMG plans to establish an AI-DV manufacturing hub featuring advanced automation and an integrated production system, starting with a new dedicated electric vehicle (EV) plant scheduled to begin operations in the fourth quarter of 2026.
HMG aims to accelerate the development of AI DVs with Level 4 or higher automation, achieving robotaxi-capable autonomous driving technology. The company pointed out that “AI-DVs leverage artificial intelligence to continuously learn from vehicle data and make autonomous decisions, forming a key part of the Group's strategy to strengthen its leadership in the increasingly competitive global mobility market.”
HMG also plans to build a strategic hydrogen fuel cell plant production base in Ulsan to support the expansion of hydrogen mobility and clean energy industries. The company is looking to produce next-generation hydrogen fuel cell systems at this facility, along with polymer electrolyte membrane (PEM) water electrolysis systems that produce clean hydrogen through water electrolysis, as next-generation flagship export products.
HMG also plans to establish future core component clusters across the Yeongnam region by 2030, including a Hyundai Mobis battery system assembly line in Ulsan; a Hyundai Mobis motor and control unit production line in Daegu; and a Hyundai Wia electric vehicle thermal management system production line in Changwon. These investments will aim to strengthen the company’s value chain competitiveness through advanced electrification technology development.
The investment programme will also look to accelerate HMG’s AI-based intelligent manufacturing innovation, with the aim ofleveraging AI to independently evaluate and optimise all factory operations, including production equipment, logistics, and quality management, creating optimal production synergies. The company pointed out that the Yeongnam region is home to large-scale manufacturing facilities and is therefore a suitable environment for implementing advanced manufacturing technologies.
HMG will also step up its investment in future aerospace and apace mobility, ranging from urban air mobility to lunar exploration vehicles, including lunar exploration rovers with autonomous driving and AI capabilities, by leveraging expertise in vehicle manufacturing and robotics.
The automaker is also looking to accelerate the establishment of sustainable energy infrastructure, to help speed up its energy diversification, including small modular reactors (SMRs), offshore wind power, and water electrolysis plants, with plans to cultivate these as next-generation export solutions.
