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Hyundai Motor Group Pledges 23 Trillion Won Investment in New Business over Next 5 Years
Deputy PM’s First Visit to Conglomerate
Hyundai Motor Group Pledges 23 Trillion Won Investment in New Business over Next 5 Years
  • By Jung Min-hee
  • January 18, 2018, 01:15
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Deputy Prime Minister Kim visited Hyundai Motor Group’s Mabuk Environmental Technology on January 17 to meet group officials including vice chairman Chung Eui-sun.
Deputy Prime Minister Kim visited Hyundai Motor Group’s Mabuk Environmental Technology on January 17 to meet group officials including vice chairman Chung Eui-sun.

 

In a meeting with Deputy Prime Minister and Finance Minister Kim Dong-yeon on January 17, Hyundai Motor Group pleged to invest 23 trillion won (US$21.49 billion) in new businesses and hire 45,000 employees over the next five years.

Deputy Prime Minister Kim visited Hyundai Motor Group’s Mabuk Environmental Technology Center in Yongin, Gyeonggi Province, on the same day to meet group officials, including vice chairman Chung Eui-sun. After that, he told reporters, “Hyundai Motor said it is planning to make a 23 trillion won (US$21.49 billion) investment and hire 45,000 workers in the next five years.”

Kim also said Hyundai Motor Group proposed problems about government subsidies for environmentally friendly cars, charging stations and electric charges for industrial purposes. 

Hyundai Motor Group plans to focus on five new business areas – vehicle electrification, smart car, robot and artificial intelligence (AI), and future energy and fostering startups. It is the first time for the group to officially announce its business plan involving robot and AI technologies. The conglomerate promised to put investment on research and development in new businesses first and create new jobs.

In addition, Hyundai Motor Group unveiled plans to make a strategic investment in high-tech startups or establish a joint venture with them in its bid to foster startups. It will also set up an open innovation system through a partnership with universities and research institutions more aggressively.

Deputy Prime Minister Kim asked Hyundai Motor Group to put out more efforts to promote shared growth with subcontractors. The group will run 24 R&D mutual growth programs, such as joint development of new technologies, professional technical training class and on-site management support, in the future. It is also planning to expand coexistence payment systems, including 731.6 billion won (US$683.42 million) worth of financial support programs for subcontractors.

Hyundai Motor Group expressed concerns over a possible shortage of government subsidies for green cars this year and asked for alternatives. In this regard, the government said it would secure a budget of 255 billion won (US$238.21 million) this year, up 30 percent on-year, and more if needed.

Hyundai Motor Group made a request about fuel cell charging stations that have recently become an issue. It asked to build high-speed charging systems producing more than 250kW. The government said, “We will push ahead with charging system technology development, standardization and certification and supply high-powered chargers in time. We will also encourage investments from public and private companies to increase fuel cell charging stations starting with highways and consider whether it is possible to build more in other areas by the end of this year.

In regard to the hike of industrial electric charges and stronger regulations on exclusive business, the government promised to gather the opinions of companies in the policy making process so that business burden will not surge.