Seoul, Nov 16, 2025 – Hyundai Motor Group announced it will invest 125.2 trillion won ($86.47 billion) in South Korea from 2026 to 2030, following a new trade agreement between Seoul and Washington that reduces U.S. tariffs on South Korean autos from 25% to 15%.

This investment represents a significant increase compared to the 89.1 trillion won Hyundai and its affiliate Kia Corp (000270.KS) invested domestically from 2021 to 2025.

Focus Areas of Investment

• AI and Future Businesses: 50.5 trillion won ($35 billion)
• Research and Development: 38.5 trillion won
• Optimizing Production Facilities & Infrastructure: 36.2 trillion won, including the construction of a skyscraper

Hyundai Group Chairman Euisun Chung said the investments aim to diversify export markets, increase domestic production, and more than double EV exports by 2030. The group also plans to support auto parts manufacturers impacted by past U.S. tariffs.

South Korean President Lee Jae Myung met with Hyundai leadership following the trade deal announcement, which also includes South Korea’s pledge to invest $350 billion in U.S. strategic sectors.

“We are well aware of concerns about exports declining and domestic production shrinking due to U.S. tariffs of 15%,” Chung said, emphasizing the company’s plan to expand EV production domestically.