Hyundai Motor Group to invest 42 trillion won in Yeongnam region over next decade, vice chairman says

"We will develop Yeongnam into a core hub for future advanced industries."

Hyundai Motor Group Vice Chairman Jang Jae-hoon said Friday the group plans to invest 42 trillion won ($27 billion) in the Yeongnam region over the next decade — a sweeping industrial transformation strategy that goes well beyond expanding automobile production to encompass AI-based self-driving vehicles, manufacturing-specialized AI, aerospace, low-earth-orbit satellite networks and energy infrastructure.

Jang made the announcement at the Yeongnam Advanced Industry Development Vision National Briefing held in Jinju, South Gyeongsang Province, presided over by President Lee Jae Myung. "Hyundai Motor Group is currently carrying out a total domestic investment of 125 trillion won over the five years from 2026 to 2030," he said. "In the Yeongnam region, we plan to invest 42 trillion won over the next 10 years in new businesses including manufacturing-specialized AI, the aerospace industry and energy infrastructure, as well as advanced autonomous driving mobility and core parts manufacturing based on AI."

Jang added that the group would "contribute to strengthening South Korea's industrial competitiveness by developing Yeongnam into a core hub for future advanced industries."

Jang identified Ulsan as the group's central manufacturing base for the transition to future vehicles. "Ulsan is the birthplace of Hyundai Motor Group and the key manufacturing hub that will lead the shift to future vehicles," he said, adding that the group would build an AI manufacturing hub equipped with cutting-edge automation and integrated production systems, including an Ulsan EV factory set to begin operation in the fourth quarter of this year.

He said the AI DV — a next-generation autonomous vehicle based on AI — would be produced through a state-of-the-art mass production system, and that Ulsan would be developed into a key production base with world-class productivity and quality.

Hydrogen was also highlighted as a pillar of Ulsan's future role. Jang said a hydrogen fuel cell factory in Ulsan, targeted to begin operation in 2028, would serve as a strategic production base supporting the expansion of hydrogen mobility and the clean energy industry, drawing on next-generation fuel cell technology.

The group plans to build a manufacturing cluster for core future-vehicle components together with key affiliates including Hyundai Mobis and Hyundai Wia. Jang said the group would concentrate investment through 2030 on a battery system assembly line in Ulsan, a motor and controller production line in Daegu, and a thermal management system production line in Changwon.

Jang said the use of manufacturing AI was essential for South Korea to emerge as a future manufacturing powerhouse, and that industrial sites holding high-quality manufacturing data held the answer.

The remarks signal the group's intention to position the Yeongnam region not merely as a production base but as a physical AI demonstration hub where manufacturing data and AI converge. "South Korea, with its well-developed manufacturing industry across sectors, also provides the foundation for the country to take another leap forward as a nation with an overwhelming edge in manufacturing," Jang said. "Hyundai Motor Group will use data generated from more than 100 manufacturing sites around the world to build a manufacturing-specialized AI model, and create a virtuous data cycle in which physical AI leads innovation on the factory floor."

In aerospace, Jang outlined plans to expand beyond the group's existing automotive business into next-generation communications infrastructure. "Hyundai Motor Group aims to extend its business into future aerospace mobility spanning urban air mobility, space and lunar exploration," he said.

He said the group would develop next-generation air mobility in the Yeongnam region in parallel through Supernal, its future aviation technology subsidiary based in the United States, building a foundation to lead the future aviation market. He added that the group would build next-generation communications infrastructure by localizing core technologies including space launch vehicle engines and participating in the construction of a low-earth-orbit satellite network.

Energy infrastructure was also presented as a key investment area tied to the group's expanding future businesses. "As Hyundai Motor Group's advanced factories, physical AI and future businesses such as aerospace expand, energy demand is expected to continue rising," Jang said. "We will raise energy self-sufficiency by building an energy supply system encompassing small modular reactors, offshore wind and water electrolysis plants, and use that experience to develop them into next-generation export industries."

Alongside the Yeongnam investments, Jang also mentioned the Saemangeum project in the Jeolla region, signaling the group's intention to align with the government's balanced regional development policy. "In line with the government's regional balanced development plan, we will expand investment in the Yeongnam region — alongside the Saemangeum project in the Jeolla region — in irreplaceable industries including future mobility and parts manufacturing bases, manufacturing AI, aerospace and energy infrastructure," he said.

"We will bring South Korea's industrial competitiveness to the world's highest level," he added.