Hyundai to Invest IDR 494 Trillion in Next-Gen Mobility and Physical AI

Hyundai Motor Group has announced plans to invest 42 trillion won (approximately IDR 494 trillion) over the next ten years to build a development centre for next-generation mobility and physical artificial intelligence (AI) in southeastern South Korea. The investment roadmap was unveiled by Hyundai Motor Group Vice Chairman Jang Jae-hoon during a public briefing led by President Lee Jae-myung in the city of Jinju. The event is part of a massive government project centred on semiconductors, physical AI, and AI data centres. “By making additional investments in new growth businesses in the Yeongnam region, the birthplace of Hyundai Motor Group, we will foster it into a major hub for future advanced industries and contribute to strengthening South Korea’s industrial competitiveness,” Jang stated. Under the plan, Hyundai Motor Group will convert its Ulsan production complex into a next-generation mobility hub by implementing an AI-based manufacturing system at a new electric vehicle factory, which is scheduled to begin operations in the fourth quarter of this year. The group’s hydrogen fuel cell plant in Ulsan will support the production of hydrogen-powered mobility solutions and renewable energy systems. Furthermore, Hyundai Motor Group intends to strengthen its automotive supply chain across the region. Beyond mobility, the group plans to venture into future aerospace businesses, including urban air mobility, space launch vehicles, and lunar exploration. This latest investment continues Hyundai Motor Group’s broader AI strategy. In February, the company announced a separate investment of 9 trillion won (approximately IDR 106 trillion) to establish an innovation centre focused on AI, robotics, and hydrogen in the Saemangeum reclamation area in North Jeolla Province.