SEOUL, Feb 25 : Hyundai Motor Group is set to announce a multi-billion-dollar investment on South Korea’s west coast, according to sources familiar with the development, as the automaker deepens its push into artificial intelligence, robotics and hydrogen infrastructure.
Media reports suggesting a potential 10 trillion won (around $7 billion) commitment to the Saemangeum region over five years triggered a strong market reaction on Wednesday. Shares of Hyundai Motor jumped 10.5%, while affiliate Kia surged 15%.
AI, Robotics and Hydrogen at Core
A second source indicated the proposed project would include a robotics hub, an AI data centre and hydrogen-related infrastructure, aligning with Hyundai’s broader strategy to expand beyond traditional vehicle manufacturing.
In November, the group had outlined plans to invest 125.2 trillion won domestically between 2026 and 2030, shortly after Seoul secured a trade agreement that lowered U.S. tariffs on South Korean automobiles from 25% to 15%. Executive Chair Euisun Chung had then spoken of developing a “hydrogen, AI city” in the renewable energy rich coastal belt.
The region is politically significant as a strong support base for President Lee Jae Myung, who has encouraged decentralised investments beyond the Seoul metropolitan area.
Tech Expansion and Global Partnerships
The upcoming announcement follows Hyundai’s October agreement with Nvidia to purchase up to 50,000 AI chips and build an “AI factory” aimed at accelerating in vehicle AI systems, autonomous driving capabilities, smart manufacturing and robotics development.
Hyundai Motor Group, which owns robotics firm Boston Dynamics, has also stated plans to scale robot production capacity to 30,000 units annually by 2028.
While a company spokesperson declined to comment on the latest reports, the anticipated Hyundai South Korea investment underscores the conglomerate’s ambition to position itself at the forefront of next-generation mobility and industrial technology.