Hyundai Motor Group, a leading Korean company in cooperative partnership, is expanding its shared growth support programs beyond first-tier suppliers to second- and third-tier suppliers. The group plans to extend various cooperative support measures—from low-interest loans to research and development (R&D) and global expansion—to all of its approximately 8,000 suppliers. Through this expansion, Hyundai Motor Group aims to drive growth across the automotive supply chain while securing a competitive edge in the global auto market.
"With the situation requiring us to defend against the revival of the U.S. auto market and China's low-price offensive, the role of suppliers is becoming very significant," Jung Hee-sub, executive director and head of Hyundai Motor's Shared Growth Office, said at the '2026 Korea Shared Growth Conference' held at the Shilla Hotel in Jung-gu, Seoul, on the 9th. "We have pursued shared growth based on the belief that growing together with suppliers is the source of a carmaker's competitiveness."
Hyundai Motor Group is focusing on expanding its shared growth support programs, previously centered on first-tier suppliers, to second- and third-tier suppliers. "To manage second- and third-tier suppliers recently, we formed a separate dedicated organization three years ago to listen to suppliers' voices and consider support measures," Jung said. Hyundai Motor Group estimates it has about 5,000 second- and third-tier suppliers, far more than the 300 first-tier suppliers.
Among the support measures using the shared growth fund, the export marketing support program is a prime example. "Even when small and mid-sized suppliers with excellent technology participate in exhibitions to expand overseas, there are cases where they receive no attention due to low brand awareness," Jung explained. To resolve this issue, Hyundai Motor Group has since 2018 supported various costs, from exhibition participation fees to transportation, for second- and third-tier suppliers taking part in exhibitions to develop overseas markets. The number of companies supported through this year reached 632, with contributions totaling 7 billion won.
The group also operates a smart factory development support program. This measure provides consulting or equipment investment funding for building smart factories. The annual support amount is 7.5 billion won, with the government covering 30 percent, suppliers 10 percent, and Hyundai Motor Group 60 percent. "Initially, the government covered 30 percent, suppliers 40 percent, and Hyundai Motor Group 30 percent, but considering the suppliers' circumstances, Hyundai Motor Group raised its share," Jung said. "This is a program we will continue to carry out going forward."
There is also a working environment improvement support program that provides up to 36 million won to help small and mid-sized suppliers improve their facilities and environment. "Second- and third-tier suppliers constantly suffer from labor shortages because many employees leave within a year after seeing the company's environment and facilities," Jung said. "To ease these difficulties, we provide some funding for welfare and facilities." Between 2024 and 2025, Hyundai Motor Group provided 13.4 billion won (including government subsidies) to 678 companies. In addition, the group has carried out various cooperative programs, such as providing a total of 6 billion won in R&D funding for suppliers from 2022 through last year.
To foster a culture of shared growth, Hyundai Motor Group also operates the 'Shared Cooperation 5-Star' program. This system quantitatively and qualitatively evaluates the cooperative activities of first-tier suppliers and reflects the results in the next bidding process. "To grow together with second- and third-tier suppliers, Hyundai Motor Group cannot do it alone," Jung said. "We are encouraging the cooperation of first-tier suppliers to form a shared growth culture."
The group also operates a loan interest support program that provides low-interest loans to suppliers, and a guarantee issuance support program that offers preferential interest rates and loan limits based on Hyundai Motor Group's guarantees. It also runs a supply price indexation system that compensates suppliers for losses by raising parts prices when raw material prices rise. "The company directly purchases steel plates and precious metals and supplies them to suppliers, while aluminum and plastic are linked to international prices or the prices published by the Korea Customs Service," Jung said.
In closing, Jung said, "We are well aware that the growth and development of our suppliers is our own growth and development." He added, "We will create a virtuous cycle in which the growth of Hyundai and Kia leads to the growth of suppliers, and the growth of suppliers leads back to our own growth."
