Hyundai Motor, LG announces domestic investment plans

Mar 28, 2024, 10:05 am

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Hyundai Motor Group Executive Chair Chung Euisun / Courtesy of Hyundai

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LG Group Chairman Koo Kwang-mo / Courtesy of LG

AsiaToday reporters Kang Tae-yoon & Chung Moon-kyung

Hyundai Motor Group revealed plans to invest 68 trillion won ($50.7 billion), while LG Group pledged to invest 100 trillion won ($74.2 billion) into new growth businesses, according to the conglomerates, Wednesday. Hundreds of thousands of jobs will be created during the process. The conglomerates’ mega investments are focused on enhancing their competitiveness in the global market.

Hyundai Motor Group announced a grand plan to invest 68 trillion won in Korea and hire 80,000 people by the end of 2026. Considering the employment inducement effect of the parts industry, the total job creation effect is expected to exceed 198,000. The recruitment will focus on new future business areas, such as electrification, software-defined vehicles (SDV), autonomous driving, and robotics.

The carmaker’s Global Business Center (GBC) project, situated in Seoul’s bustling commercial district of Samseong-dong, is expected to become a new landmark of the capital city. Its EVO Plant in Gwangmyeong as well as EV-dedicated plants in Hwaseong and Ulsan will be completed this year, while its existing plants are expected to be converted to EV-dedicated ones in a speedy manner.

LG Group also shared its extensive investment roadmap for the next five years. It plans to allocate 100 trillion won in Korea by 2028, securing competitive advantages in next-generation growth sectors such as artificial intelligence (AI), biotechnology, batteries, and vehicle components. This substantial investment represents 65 percent of the group’s total global investment.

The two conglomerates’ large investment in Korea shows their willingness to make their domestic workplaces, the safest investment destinations, into key bases for R&D and production amid challenges posed by the current economic slowdown and escalating geopolitical uncertainties.

#Hyundai Motor #LG Group #investment