LG to invest $74.2 bil., Hyundai Motor Group pledges $50.4 bil. to new growth businesses
LG Group revealed plans to invest 100 trillion won ($74.21 billion), while Hyundai Motor Group pledged to invest 68 trillion won into new growth businesses, according to the two conglomerates, Wednesday.
Their plans reflect a determined effort to maintain a competitive edge in the increasingly challenging technological landscape marked by escalating threats of trade protectionism and geopolitical instability.
Under its ambitious drive, LG Group has unveiled an extensive investment roadmap for the next five years. It plans to allocate 100 trillion won in Korea by 2028, strategically positioning itself to secure competitive advantages in next-generation growth sectors such as artificial intelligence (AI), biotechnology, batteries, and vehicle components. This substantial investment represents 65 percent of the group’s total global investment.
“LG aims to solidify its core competitiveness in key burgeoning industries and transform them into the company’s primary growth drivers moving forward,” LG Group Chairman Koo Kwang-mo said in a written greeting message during the group’s regular shareholders’ meeting.
Of particular significance is LG’s allocation of 55 percent of the investment toward enhancing its research and development capabilities, with a particular focus on developing key materials and building smart factories.
The LG chief also underscored plans to make larger investments in next-generation cash-cow sectors, including AI, biotechnology, and clean technology.
“We will transform them into the key pillars of our next major business portfolios,” he said. Koo also highlighted LG’s commitment to fostering group-wide collaboration to seek out future business opportunities, despite the challenges posed by the current economic slowdown and escalating geopolitical uncertainties.
On the same day, Hyundai Motor also shared its plan to invest 68 trillion won by 2026, while directly creating 80,000 jobs domestically.
The automaker’s objective is to enhance its global footprint in future mobility through aggressive investments in areas such as electrification, software-defined vehicles (SDV), autonomous driving, and robotics.
The investment averages 22.7 trillion won annually for the next three years, marking a nearly 30 percent increase from the previous year. Additionally, the automaker anticipates the investment to contribute to the creation of 118,000 jobs in the nation’s vehicle component industry.
The world’s third-largest automaker in terms of sales will allocate 35.3 trillion won to enhance its overall research infrastructure and expand electric vehicle (EV) manufacturing plants. The company also plans to spend 31.1 trillion won to reinforce its competitiveness in key growth areas, including SDVs, electrification and battery technologies.
“By 2030, Hyundai Motor Group will expand its EV lineup to 31 models and increase annual EV production capacity in Korea to 1.51 million units,” a spokesman for the automaker said. “In the field of SDVs, Hyundai Motor and Kia are fully committed to realizing their group-wide vision for future mobility, seamlessly interconnected through innovative software solutions.”
The group is poised to invest 4.6 trillion won into its Global Business Center (GBC) project, situated in Seoul’s bustling commercial district of Samseong-dong. The project entails the construction of two 50-story skyscrapers, along with four additional buildings dedicated to cultural and convenience facilities.
“After completion, the GBC is expected to attract a large number of tourists and create jobs as a core space in Seoul’s international complex,” the official said.