Hyundai Motor unveils record 24.3 trillion won investment in Korea

Three days after Hyundai Motor Group Chairman Chung Eui-sun warned of a "perfect storm" of challenges, the company unveiled plans for a record 24.3 trillion won investment in South Korea this year. The move aims to preemptively address political uncertainty, domestic economic stagnation, and global shifts, including the return of the Donald Trump administration.

On Thursday, Hyundai made the announcement of a domestic investment worth 24.3 trillion won for 2025, a 19% increase from last year’s 20.4 trillion won and the largest annual investment in the company’s history. “In a year of heightened uncertainty, consistent and stable investment is essential to overcoming challenges and securing future growth engines,” the company stated.

The investment will first focus on research and development (R&D) to secure future growth engines, with 11.5 trillion won allocated. An additional 12 trillion won will be used to upgrade production facilities and infrastructure, while 800 billion won is earmarked for strategic investments.

While Hyundai Motor has adopted an aggressive strategy, the country’s other top four conglomerates have yet to announce their investment plans for the year. Ahn Dong-hyun, an economics professor at Seoul National University, emphasized the importance of political stability for corporate decision-making. “In South Korea, policies often change with power shifts, making political stability a crucial factor in reducing uncertainty for investment decisions,” he said.


김형민 kalssam35@donga.com