Hyundai Motor Group In-House Startup Start Auto& Goes Public... Result of Nurturing Efforts

Hyundai Motor Group Spins Off 26 In-House Startups... Creates 700 Jobs and Generates 270 Billion KRW in Revenue

[Asia Economy Reporter Yoo Je-hoon] Hyundai Motor Group's efforts to nurture in-house startups have borne fruit with a successful first public listing.

Hyundai Motor Group announced on the 24th that 'Auto&', a developer and distributor of automotive products that was founded as an in-house startup and later spun off, was newly listed on the KOSDAQ market on the 20th. This is the first time that an in-house startup nurtured through Hyundai Motor Group's startup program has been spun off and listed on the stock exchange. Auto& closed at the upper price limit for two consecutive days, including its first day of listing.

Auto& is a mobility platform company that develops and distributes automotive-related products and services. It started as an in-house startup within the group in 2008 and spun off in 2012. Auto& has continuously grown through cooperation and mutual growth with Hyundai Motor Group by developing and selling additional vehicle options such as H·Kia Genuine Accessories, operating the Blue·Kia Members Point Mall, and supporting vehicle maintenance service hubs like Blue Hands and AutoQ. Eight years after its spin-off, in 2020, it recorded sales of 49.4 billion KRW on a consolidated basis.

The background of this achievement lies in Hyundai Motor Group's consistent startup nurturing policy. Since 2000, Hyundai Motor Group has operated an in-house startup nurturing program called 'Venture Plaza' to create future new business growth engines. From last year, it was renamed 'Zero1 Company Builder' and integrated with the existing open innovation platform brand 'Zero1', expanding its business scope from mainly automotive to various promising new business fields.

To support Zero1 Company Builder, Hyundai Motor Group selects companies through document screening, interviews, workshops, and presentations from employees who submit ideas. Selected companies receive up to 300 million KRW in development costs along with a one-year opportunity to develop products, services, and commercialize their business. After one year, business feasibility, financial plans, and entrepreneurial intent are reviewed to decide whether to spin off or commercialize within the company. Additionally, to reduce the burden on employees entering new fields, re-employment opportunities are provided for up to three years after spin-off.

Even after spin-off, Hyundai Motor Group supports business development and expansion, funding operations, and overseas expansion through the open innovation platform Zero1 to enhance corporate competitiveness. So far, Hyundai Motor Group has selected and nurtured a total of 67 teams through its in-house startup system, with 26 companies spun off by last year. As of the end of 2020, these companies have created approximately 700 jobs and generated about 270 billion KRW in sales.

A Hyundai Motor Group official said, "Last year, four in-house startups?AutoL, Difon, DataMond, and Boda AI?launched as independent companies," adding, "Hyundai Motor Group plans to help about 10 startups spin off every year going forward."