SEOUL. Hyundai Motor Group has announced plans to invest 125.2 trillion won ($86.47 billion) in South Korea between 2026 and 2030. The announcement came shortly after Seoul finalised a new trade deal with Washington that reduces U.S. tariffs on South Korean vehicles from 25% to 15%.
The new investment plan is significantly larger than the group’s previous spending. Hyundai Motor and its affiliate Kia Corp invested 89.1 trillion won from 2021 to 2025.
Government Meeting Follows Trade Deal
South Korean President Lee Jae Myung met on Sunday with Hyundai Motor Group Chairman Euisun Chung and other major business leaders. The meeting took place two days after the government released full details of the trade agreement.
As part of the deal, South Korea committed to investing $350 billion in U.S. strategic industries.
Hyundai Plans to Boost Domestic Production and Exports
Chung acknowledged concerns about declining exports and shrinking domestic output due to the new 15% U.S. tariff rate. However, he emphasized that the company already has plans to counter these risks.
“We are well aware of concerns about exports declining and domestic production shrinking due to U.S. tariffs of 15%,” Chung said.
“We will diversify export markets, increase exports from domestic factories, and more than double auto exports through new electric-vehicle factories by 2030.”
He also noted that Hyundai will support auto-parts suppliers affected by President Donald Trump’s tariff policy.
Breakdown of Hyundai’s Domestic Investment
Hyundai Motor Group outlined where the 125.2 trillion won investment will go:
- 50.5 trillion won ($35 billion) for AI and future business opportunities
- 48.4 trillion won for research and development
- 36.2 trillion won for production optimization and construction, including a new skyscraper
