SEOUL, South Korea – Hyundai Motor Group, led by billionaire Euisun Chung, has announced a 19% increase in domestic investment, reaching a record 24.3 trillion won ($16.7 billion). This decision aims to enhance competitiveness in light of sluggish consumer sentiment and uncertainties in U.S. trade.
The investment includes 11.5 trillion won dedicated to research and development in next-generation mobility technologies, focusing on electrification, hydrogen-powered vehicles, and connected cars. Additionally, 12 trillion won will be allocated to expanding electric vehicle production lines and building infrastructure. Approximately 800 million won is earmarked for strategic investments in autonomous driving.
This announcement follows a warning from Chung about escalating geopolitical and economic risks, including potential tariffs from the incoming U.S. administration. The consumer sentiment index in South Korea hit its lowest level in over two years, influenced by political instability after President Yoon Suk Yeol's impeachment.
Hyundai Motor reported a 7.5% drop in domestic sales for 2024 and a slight decrease of 0.5% in overseas sales. In his annual New Year address, Chung emphasized the need to confront uncertainties, stating, “Without challenges, we risk becoming complacent.”
Hyundai Motor stands as the world's third-largest automaker by production volume, trailing only Japan's Toyota and Germany's Volkswagen. In March, the company announced plans to invest 68 trillion won over three years to enhance electric vehicle development and to hire 80,000 new employees. Recently, Jose Munoz officially took over as president and CEO of Hyundai Motor Co. in the U.S.