South Korean automaker Kia Corporation, part of Hyundai Motor Group, has revealed plans to invest KRW 3 trillion (US$ 2.2 billion) to build a new electric vehicle (EV) plant at its AutoLand complex in Gwangju, South Korea, according to local reports.
The project is part of a broader programme announced by Hyundai Motor Group in November 2025 to invest KRW 125 trillion in its domestic operations over a period of five years.
The investment in Gwangju is expected to be completed by 2029, with the aim of establishing a strategic global production base for software-defined vehicles (SDVs) and zero-emission vehicles.
Hyundai Motor Group also plans to establish an integrated mobility ecosystem in Gwangju, in collaboration with the Gwangju city authorities, Chonnam National University and the Gwangju Institute of Science and Technology. The initiative will focus on testing purpose-built vehicles (PBVs) for local transportation, including autonomous public shuttle buses, last-mile logistics vans, and autonomous and remotely driven vehicles for passengers with disabilities.
The consortium plans to deploy a fleet of 200 autonomous Hyundai Ioniq 5 EVs across the city to support road testing of the PBVs and train their AI systems.
Kia’s CEO, Song Ho-sung, confirmed that the partnership aims to “accelerate the commercialization of PBV-based technologies while helping position the Jeonnam-Gwangju Integrated Special City as Korea’s flagship center for future mobility.”
