DAEGU < invest Korea

According to Newsis,

(Seoul = Newsis) Reporter Kim Min-seong – Hyundai Motor Group plans to invest a total of KRW 42 trillion in the Yeongnam region over the next 10 years to expand its future mobility, aerospace, and energy infrastructure.

The blueprint centers on intensely developing key cities across the Yeongnam area—including Ulsan, Daegu, and Changwon in Gyeongsangnam-do—into the group's core global hubs for advanced industries. Focus areas include transitioning toward artificial intelligence-based vehicles (AI DVs) capable of Level 4 autonomous driving or higher, future aerospace, and next-generation energy infrastructure.

During the 'Yeongnam Region Advanced Industry Development Vision Public Briefing' presided over by President Lee Jae-myung in Jinju, Gyeongsangnam-do on the 3rd, Jae-hoon Chang, Vice Chairman of Hyundai Motor Group, stated, "In the Yeongnam region, we plan to invest KRW 42 trillion over the next decade into new business sectors, including AI-based advanced autonomous mobility and core component manufacturing, as well as manufacturing AI, the aerospace industry, and energy infrastructure."

First, in Ulsan, Hyundai Motor Group will build an AI manufacturing hub equipped with state-of-the-art automation and integrated production systems, anchored by the Ulsan EV plant scheduled to begin operations in the fourth quarter of this year.

Through this hub, Hyundai Motor Group aims to advance its technological capabilities up to AI DVs (AI-Defined Vehicles) featuring Level 4 autonomous driving equivalent to robotaxis, thereby securing global leadership.

Vice Chairman Chang remarked, "Ulsan is the birthplace of Hyundai Motor Group and a key manufacturing base that will lead our transition into future vehicles." He added, "An AI DV refers to a next-generation autonomous vehicle powered by artificial intelligence. Together with a cutting-edge mass-production system, we will foster Ulsan into a world-class facility."

Additionally, the Ulsan Hydrogen Fuel Cell Plant, targeting operation by 2028, will be established as a strategic production base grounded in next-generation fuel cell technology to support the expansion of hydrogen mobility and clean energy industries.

Major component affiliates of Hyundai Motor Group, including Hyundai Mobis and Hyundai Wia, will also join the investment drive in the Yeongnam region.

Specifically, Hyundai Mobis will build a battery system assembly line in Ulsan by 2030 and establish a motor and controller production line in Daegu.

Hyundai Wia plans to set up a new production line for electric vehicle thermal management systems in Changwon.

The group will also accelerate the deployment of manufacturing-specialized AI. Based on high-quality manufacturing data accumulated across global hubs, the plan is to create a virtuous cycle where physical AI independently assesses and optimizes overall factory operations, including production equipment, logistics, and quality management.

Vice Chairman Chang stated, "To leap forward as a future manufacturing powerhouse, the utilization of manufacturing AI is essential, and industrial sites possessing high-quality manufacturing data hold the key." He continued, "Hyundai Motor Group will leverage data generated from over 100 global manufacturing bases to build manufacturing-specialized AI, establishing a data virtuous cycle that leads innovation on the shop floor."

Furthermore, he unveiled plans to jointly develop next-generation Advanced Air Mobility (AAM) in the Yeongnam region in tandem with 'Supernal,' the group's future aviation technology subsidiary based in the United States.

At the same time, the group will pursue the localization of core space technologies, such as developing space launch vehicle engines and lunar exploration rovers.

Vice Chairman Chang noted, "By jointly developing next-generation air mobility in the Yeongnam region with Supernal, our U.S.-invested future aviation technology subsidiary, we will establish the foundation to lead the future aviation market." He added, "We will also construct next-generation communication infrastructure by localizing core technologies—including space launch vehicle engines—and establishing a low-Earth orbit satellite network."

To meet the rising energy demand resulting from the development of the Yeongnam region, Hyundai Motor Group will expand next-generation energy infrastructure, including Small Modular Reactors (SMRs), offshore wind power, and Proton Exchange Membrane (PEM) water electrolyzers.

Vice Chairman Chang commented, "As Hyundai Motor Group expands its advanced plants, physical AI, and future industries like aerospace, energy demand is expected to grow continuously." He explained, "By establishing energy supply systems such as SMRs, offshore wind, and water electrolysis plants, we will enhance energy self-sufficiency and build on this experience to cultivate a next-generation export industry."

In closing, Vice Chairman Chang stated, "Alongside our Saemangeum project in the Jeolla region, we will expand investments in irreplaceable industries across the Yeongnam region—spanning future mobility, component manufacturing hubs, manufacturing AI, aerospace, and energy infrastructure—to elevate South Korea's industrial competitiveness to a world-leading level."

◎ NEWSIS, kms@newsis.com



Copyrights Newsis. All Rights Reserved. Reprint or redistribution without permission is prohibited.

Source Text

Source: Newsis (July 03, 2026)

** This article was translated from Korean.