Hyundai Boosts Massive Automobile Investments in Korea

Hyundai increases investments in automobiles with the new US tariff agreement redefining export and EV development plans.

Hyundai Motor Group has made a massive ₩125.2 trillion investment decision in South Korea in the 2026-2030 periods, which was one of its biggest promises to empower the national automobile industry. The strategic action follows the fact that Seoul has recently negotiated a new trade agreement with the United States that will reduce tariffs on the South Korean vehicles exported to the United States to 15 instead of 25 percent.

This new investment is much higher than the W89.1 trillion to be injected into domestic investment by Hyundai and its subsidiary Kia between 2021 and 2025. The new strategy will strengthen South Korea as a world car hub besides expediting the manufacture of electric vehicles.

The Chairman of Hyundai Motor Group, Chung Eui-sun, had a meeting with President Lee Jae Myung to see what the implication of the revised tariff agreement will be. South Korea also promised $350 billion to US strategic sectors as part of the wider scheme.

Chung highlighted the determination of the group in fighting exportation issues due to tariffs in the US. He emphasized the intention of diversification of world markets, increased domestic factory production and increasing automobile exports worldwide by more than twofold through new EV plants by 2030. The auto parts makers who suffer due to the US trade policies will also be given priority.

₩50.5 trillion out of the new investment will be used in AI and future business, ₩48.4 trillion in research and development, and ₩36.2 trillion in modernizing manufacturing sites and building a new landmark skyscraper.