Hyundai Motor Group Vice Chairman Jang Jae-hoon announces plans to invest KRW 42 trillion(USD 27.3 billion) in South Korea's southeastern region in future mobility and smart factories during a public briefing presided over by President Lee Jae Myung in the southeastern city of Jinju on July 3, 2026. (Pool photo) (Yonhap)
According to Yonhap News,
By Kim Eun-jung
SEOUL, July 3 (Yonhap) -- Hyundai Motor Group said Friday it will invest KRW 42 trillion (USD 27.3 billion) over the next decade to establish next-generation mobility and physical artificial intelligence (AI) hubs in South Korea's southeastern region.
Hyundai Motor Group Vice Chairman Jang Jae-hoon unveiled the investment roadmap during a public briefing presided over by President Lee Jae Myung in the southeastern city of Jinju, as part of the government's mega project centered on semiconductors, physical AI and AI data centers.
The investment is intended to transform the Gyeongsang region, also known as Yeongnam and home to the group's main manufacturing operations, into a hub for autonomous vehicles, AI-powered manufacturing and future aerospace technologies.
"By making additional investments in new growth businesses in the Yeongnam region, the birthplace of Hyundai Motor Group, we will foster it into a key hub for future advanced industries and contribute to strengthening South Korea's industrial competitiveness," Jang said.
Under the plan, Hyundai Motor Group will turn its Ulsan production complex into a hub for next-generation mobility by deploying AI-powered manufacturing systems at its new electric vehicle plant, which is scheduled to begin operations in the fourth quarter.
The company is also accelerating the development of AI-powered autonomous vehicles, advancing the technology toward Level 4 autonomous driving and beyond to enable robotaxi-level self-driving capabilities.
The group's hydrogen fuel cell plant in Ulsan will support the production of hydrogen-powered mobility solutions and renewable energy systems.
Hyundai Motor Group also plans to strengthen its automotive supply chain across the region.
By 2030, it will establish a battery system assembly line at Hyundai Mobis' Ulsan plant, a motor and controller production line at Hyundai Mobis' Daegu facility, and an electric vehicle thermal management system production line at Hyundai Wia's Changwon plant.
Beyond mobility, Hyundai Motor Group plans to expand into future aerospace businesses, including urban air mobility, space launch vehicles and lunar exploration.
The latest investment builds on the group's broader AI strategy.
In February, Hyundai Motor Group announced a separate 9 trillion won investment to build an AI-, robotics- and hydrogen-focused innovation hub on the Saemangeum reclaimed land in North Jeolla Province.
ejkim@yna.co.kr
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Source: Yonhap News (July 03, 2026)