Hyundai Motor Group Plans KRW42 Trillion Investment in Yeongnam Region for Advanced Industry Hub
Hyundai Motor Group will invest KRW42 trillion over 10 years to build an advanced industry hub in Korea's Yeongnam region, including AI-defined vehicle manufacturing, hydrogen fuel cells, and aerospace facilities.
- KRW42 trillion
- 10 years
- Q4 2026
- 2030
What Happened
Hyundai Motor Group has announced a comprehensive blueprint to foster an advanced industry hub in Korea's Yeongnam region, with a planned investment of KRW42 trillion over 10 years starting in 2026. The Group signed a memorandum of understanding with four government ministries and five local authorities from Busan, Daegu, Ulsan, Gyeongnam Province, and Gyeongbuk Province. The initiative aims to accelerate the Group's transformation into a future technology company.
- AI DV manufacturing hub with advanced automation and Ulsan EV-dedicated plant (starting Q4 2026)
- Ulsan hydrogen fuel cell plant for next-generation fuel cells and PEM water electrolysis systems
- Future core component clusters by 2030: Hyundai Mobis battery system line in Ulsan, motor and control unit line in Daegu, Hyundai Wia thermal management line in Changwon
- Manufacturing AI-based intelligent factory optimizing production, logistics, and quality
- Aerospace and space mobility, including lunar exploration rovers with autonomous driving and AI
“By making additional investments in new business sectors across the Yeongnam region, which is the foundation of Hyundai Motor Group, we will develop it into a key hub for future advanced industries and contribute to strengthening Korea's industrial competitiveness.”
Investment plan announced; 10-year period begins
Ulsan EV-dedicated plant begins operations
Future core component clusters completed in Ulsan, Daegu, and Changwon
KRW42 trillionKorean won
Over 10 years starting in 2026 for the Yeongnam advanced industry hub
The Group aims to transform Hyundai Motor Company's Ulsan plant—the world's largest single integrated automotive manufacturing facility—into a core hub for future mobility. Additionally, the Group is investing in energy infrastructure including small modular reactors (SMRs), offshore wind power, and water electrolysis plants to secure sustainable energy supply. The initiative also supports the development of AI Defined Vehicles (AI DV) with Level 4 or higher automation, including robotaxi-capable autonomous driving.
Why this matters
This investment transforms the Yeongnam region into a high-tech hub, creating jobs and boosting Korea's industrial competitiveness. It shows Hyundai's shift beyond cars into AI, hydrogen energy, and space mobility, affecting workers in the region and positioning Korea in future industries.
Terms in This Story
- AI DV
- AI Defined Vehicle: a vehicle that uses artificial intelligence to continuously learn from data and make autonomous decisions.
- PEM water electrolysis
- A technology using a polymer electrolyte membrane to produce clean hydrogen from water.
- SMR
- Small modular reactor: a compact nuclear reactor design for electricity generation.
Summarised from the linked release; details can be imperfect — always verify against the original source.