Hyundai Motor Group to invest 24.3 trillion won in S. Korea

Jan 10, 2025, 08:06 am

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Hyundai Motor Group Executive Chair Chung Eui-sun speaks during the firm’s New Year event at Hyundai Motorstudio Goyang in Gyeonggi Province on Jan. 6, 2025./ Source: Hyundai Motor Group

AsiaToday reporter Kang Tae-yoon

Hyundai Motor Group will invest more than 24 trillion won (US$16.6 billion) in South Korea this year. The focus in on the transition to electric vehicle and software-defined vehicles (SVs), with half of the total investment dedicated to research and development (R&D). This investment is based on the judgment that large-scale domestic investments are essential to secure future growth engines and overcome anticipated crises such as the strengthening of global protectionism, slowing demand for electric vehicles, and sluggish domestic demand.

The Korean automaker revealed its plans Thursday. The plan represents a more than 19 percent increase from last year’s domestic investment of 20.4 trillion won, according to the group.

Since Chairman Chung Eui-sun took office in 2020, Hyundai Motor Group has achieved remarkable progress, ranking among the top three global automakers for three consecutive years. Last year, the group continuously broke its all-time records in terms of sales and operating profit. However, this year presents more unexpected business environment variables than ever before, necessitating the search for various solutions to overcome these challenges.

In his New Year’s message this year, Chairman Chung also stressed change and innovation through continuous improvement of the group’s constitution, saying, “The perfect storm will rather help us,” adding, “We have always overcome the crisis brilliantly and become stronger after the crisis.”

“This large-scale domestic investment aims to strengthen future competitiveness centered on Korea as a mobility innovation hub amid uncertain business environments both domestically and internationally. It is expected to contribute to the shared growth of upstream and downstream industries by revitalizing the domestic economy and promoting the advancement of related industries,” the company said.

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