Hyundai Motor Group will invest approximately 8 trillion won ($5.9 billion) to build a research complex for artificial intelligence (AI), software, and defense development in Bokjeong-dong, Songpa-gu, Seoul. The complex is expected to serve as a core base for Hyundai Motor Group's research and development (R&D), alongside the existing Namyang Research Center.
Five affiliates — Hyundai Motor (005380.KS), Kia (000270.KS), Hyundai Mobis (012330.KS), Hyundai Rotem (064350.KS), and Hyundai Steel (004020.KS) — disclosed on the 24th that they will establish a real estate corporation, "HMG Future Complex," and contribute funds for the construction of the integrated research complex. Hyundai Motor said, "Affiliates within the group will make new investments in the planned new corporation to secure an integrated research and business hub to lead future businesses."
The total investment amounts to approximately 7.33 trillion won, with Hyundai Motor contributing 2.89 trillion won, Kia 2.36 trillion won, Hyundai Mobis 1.10 trillion won, Hyundai Steel 516.4 billion won, and Hyundai Rotem 460.8 billion won. Based on these contributions, ownership of the real estate corporation will be divided into Hyundai Motor at 36.1%, Kia at 29.5%, Hyundai Mobis at 13.7%, Hyundai Steel at 6.5%, and Hyundai Rotem at 5.8%. Hyundai Motor Group plans to secure additional investments from other affiliates to build the research complex at a total scale of 8 trillion won.
The Bokjeong-dong research complex is set for completion in 2030. The five affiliates will pay their contributions in installments over five years, from May this year through 2030. Hyundai Motor Group is reportedly planning to concentrate research personnel specialized in AI, robotics, information and communications technology (ICT), and software at the Bokjeong Advanced R&D Center (tentative name).
