To Facilitate Investments in Innovative Companies
Hyundai Motor Group announced on June 30 that it would set up an investment company, which is tentatively named “HMG Global,” in Delaware of the United States. The group's three major affiliates, Hyundai Motor Co., Kia Corp., and Hyundai Mobis, will jointly participate in the establishment of the new corporation.
The three affiliates will invest a total of 1.5 trillion won, including 747.6 billion won of new investment and the 50 percent stake in Boston Dynamics owned by Hyundai Motor Co. and Hyundai Mobis.
The three companies will each own 49.5 percent, 30.5 percent and 20.5 percent of the group's investment arm.
The establishment of HMG Global is intended to facilitate the group's investments in companies with new technologies and manage them more efficiently.
Hyundai Motor Group announced in May that it would invest a total of US$10.5 billion in the United States. The group's chairman Chung Eui-sun disclosed during his meeting with U.S. President Joe Biden that the group would invest US$5.5 billion to establish an electric vehicle production base in Georgia, which includes an electric vehicle plant and a battery cell plant. Chung also announced an additional investment of US$5 billion in robotics, urban air mobility (UAM), autonomous driving software and artificial intelligence (AI).
“We expect the establishment of the corporation to be completed in August,” a Hyundai Motor Group official said.
The establishment of HMG Global is expected to accelerate Hyundai Motor Group’s entry into the United States. The group has already made significant investments in the United States, including a US$4 billion joint venture with Aptiv, an American autonomous driving company, and the acquisition of Boston Dynamics.