Hyundai Motor Group to invest record $16.7 billion in South Korea this year
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SEOUL--South Korea’s Hyundai Motor Group said on Thursday it planned to boost domestic investment by 19% to a record high of 24.3 trillion won ($16.65 billion) this year to secure future growth even as it grapples with economic and political uncertainties.
Hyundai Motor Group, including Hyundai Motor and Kia Corp, ranks third in global vehicle sales behind Toyota Motor and Volkswagen.
The planned investment by Hyundai Motor Group includes 11.5 trillion won in research and development for next-generation products, electrification, software-defined vehicles, hydrogen-fueled products and other technology.
It will also spend 12 trillion won on ordinary investments such as adjusting production lines to make electric vehicles and new models and about 800 billion won on strategic investments such as for autonomous driving, the statement said.
"Hyundai Motor Group is making the largest investment ever in South Korea this year because it believes that continuous and stable investments are essential to overcome the crisis and secure future growth engines in the face of growing uncertainties," the group said, without directly describing the crisis it faced.
Hyundai Motor Group Executive Chair Euisun Chung last week referred to a recession and global conflicts as external risks for the company.
Shares in Hyundai Motor and Kia were up 2.3% and 3.8% respectively in early trade after the news, while the broader market was up 0.1%.
Ref: Hyundai Motor Group to invest record $16.7 billion in South Korea this year
