Hyundai plans record $16.7 bln investment in South Korea

STORY: Hyundai Motor Group says it plans to invest a record $16.7 billion in its South Korean operations.

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That would be up almost a fifth on the year.

Thursday’s (January 9) move is a bid to secure future growth even as the firm grapples with economic uncertainty and political turmoil in its home country.

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The group – which includes Kia as well as the namesake Hyundai brand – is the world’s number three automaker, behind Toyota and Volkswagen.

Around half its new investment will go on developing next-generation products, including electric and hydrogen fuelled vehicles.

The other half will go on regular investments for things like adjusting production lines to make EVs.

In a statement, the group said it was all necessary to overcome the current “crisis” – without specifying what crisis it meant.

Last week, the company referred to recession and global conflict as key external risks.

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South Korean consumer confidence has plummeted following the declaration of martial law and then impeachment of President Yoon Suk Yeol.

Meanwhile, U.S. president elect Donald Trump has vowed to impose 10% tariffs on all imported goods.

Kia shares were up close to 4% by early afternoon following the news, with Hyundai up around 1%.

Both gains far outpaced Seoul’s benchmark Kospi index.

Earlier this month, Hyundai and Kia said they planned to grow their combined global sales to almost 7.4 million units this year, following a dip in 2024.