"31 Trillion Won in the US Over 4 Years, 25 Trillion Won in Korea in 1 Year"
"Plans to Increase Investments According to Korea's Role"
Saudi 'Vision 2030'... Contributing to the Automotive Industry
Jang Jaehun, Vice Chairman of Hyundai Motor Group, emphasized, "I do not believe that domestic investment will be neglected or reduced due to overseas investments."
This year alone, Hyundai Motor Group has established its third production base in the United States and has broken ground on its first production plant in the Middle East, actively pursuing overseas investments. His remarks are interpreted as a rebuttal to some concerns that domestic investment could relatively decrease as a result.
Jang Jaehun, Vice Chairman of Hyundai Motor Group, is answering questions from reporters after the groundbreaking ceremony of the Hyundai Motor Saudi Production Corporation (HMMME) factory held on the 14th (local time) at King Abdullah Economic City in Saudi Arabia. Photo by Hyundai Motor
After the groundbreaking ceremony of the Hyundai Motor Saudi Production Corporation (HMMME) factory held on the 14th (local time) at King Abdullah Economic City in Saudi Arabia, Vice Chairman Jang told reporters, "We intend to continue increasing investments in areas that require investment in Korea."
He added, "At the group level, we have announced a plan to invest about 25 trillion won in Korea this year," and explained, "Compared to the United States, where we plan to invest 31 trillion won over the next four years, the investment in Korea will be made within a single year."
Earlier this year, Hyundai Motor Group announced a record-high domestic investment of 24.3 trillion won, which is more than a 19% increase compared to 20.4 trillion won in 2024. The company plans to expand domestic production facilities for electric vehicles and hydrogen fuel cell vehicles, and to strengthen the supply chain ecosystem and its synergies. In particular, beyond electrification, the group aims to enhance its technological competitiveness by increasing research and development investments in future technology fields such as autonomous driving and software.
He stated, "Globally, growth is the top priority, but there are expansion areas that we must focus on domestically," and added, "Our overall investment direction will continue not only in mobility but also in artificial intelligence (AI), robotics, and energy."
In addition, Vice Chairman Jang emphasized that with the establishment of HMMME, Hyundai Motor and the Public Investment Fund (PIF) have agreed to build a key hub to accelerate the growth of Saudi Arabia's mobility ecosystem. He said, "The Saudi government is showing significant interest in industrialization, especially in the automotive industry," and added, "I believe our role will be clear at the dawn of the automotive industry in Saudi Arabia."
Saudi Arabia is currently implementing its national development project, 'Vision 2030,' to diversify its fossil fuel-based industrial structure into manufacturing and hydrogen energy, among other sectors. HMMME is one of the key projects led by PIF, the main driver of 'Vision 2030,' to strengthen the automotive industry.
Vice Chairman Jang stressed, "Saudi Arabia is a market with great potential," and added, "We aim to contribute to the development of Saudi Arabia's automotive industry in line with 'Vision 2030.'"
In the mid- to long-term, it is expected that a foundation for cooperation will be established in areas such as hydrogen and energy cells. Vice Chairman Jang said, "The Saudi government has shown strong interest in hydrogen and energy cells derived from petroleum byproducts. We have been conducting various demonstration projects for the past two to three years," and added, "How to build an ecosystem when expanding these areas into the mobility sector will be a subject of future discussions."
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