"Securing Future Competitiveness"... LG Invests 100 Trillion, Hyundai Motor 68 Trillion

LG Group to Invest 100 Trillion KRW Domestically by 2028
Focusing on New Growth Businesses like AI, Bio, and Auto Parts
Hyundai Motor Group to Invest 68 Trillion KRW by 2026
80,000 Direct Domestic Jobs... 198,000 Indirect Jobs

LG Group and Hyundai Motor Group have each announced investment plans of 100 trillion won and 68 trillion won, respectively. As they concluded their shareholder meetings, they decided to embark on massive investments to secure future competitiveness.

LG Corporation held a shareholder meeting on the 27th and announced plans to invest approximately 100 trillion won domestically over the next five years until 2028 at the group level. This accounts for 65% of LG's total global investment scale. LG's strategy is to invest 50% of the domestic investment amount in growth sectors such as future technologies like artificial intelligence (AI), bio, cleantech, as well as batteries, automotive parts, and next-generation displays to secure differentiated competitiveness.

At the meeting, LG Group Chairman Koo Kwang-mo said in a greeting read by LG Corporation Vice Chairman Kwon Bong-seok, "This year, we intend to focus more on 'differentiated customer value' and 'strengthening the fundamental competitiveness of our business,'" adding, "We will closely monitor changes in upstream and downstream industries of our core businesses and build a solid business structure that delivers results under any circumstances by strengthening the fundamental competitiveness across the entire business."

Chairman Chung Eui-sun of Hyundai Motor Group (photo left), Chairman Koo Kwang-mo of LG Group

Hyundai Motor Group also announced its mid-term investment and employment plans on the same day, stating that it will hire 80,000 people domestically and invest 68 trillion won over the next three years to secure future mobility competitiveness. Although the group disclosed a four-year investment plan in 2022, this is the first time in nine years since 2015 that employment plans have been included at the group level.

Looking at the details, investments will be made across various fields, from research and development (R&D) to prepare for future vehicles, establishing electric vehicle-only factories, strengthening parts suppliers' capabilities, to the Global Business Center (GBC) project. 31.1 trillion won will be invested in R&D, while the remaining half will be allocated to capital expenditures including the establishment of electric vehicle-only factories and the GBC project. Additionally, 1.6 trillion won has been allocated as ammunition for strategic investments such as mergers and acquisitions (M&A).

In terms of employment, Hyundai Motor Group plans to directly hire 80,000 people. Considering the employment effects including the parts industry, the total direct and indirect employment is estimated to reach about 198,000 people. In future new business sectors such as electrification, software-defined vehicles (SDV), and hydrogen business, 44,000 new employees will be hired. Furthermore, 23,000 new hires will be made to strengthen existing businesses, including new model development and enhancement of quality and safety management. The remaining 13,000 are re-employed senior workers such as retirees.