Shares of Hyundai Motors and Kia surged by 10.5% and 15% on Wednesday, February 25, 2026, respectively, following news of a massive 10 trillion won ($7 billion) investment planned for South Korea’s west coast.
This five-year project in the Saemangeum area is designed to transform the region into a high-tech AI and hydrogen city. A second source said the investment involves robotics, an AI data centre, and hydrogen infrastructure, but the Hyundai Motor spokesperson declined to comment.
Hyundai Motor Group said in November that it will invest a total of 125.2 trillion won in South Korea from 2026 to 2030, after Seoul finalised a trade deal that reduced U.S. tariffs on South Korean autos to 15% from 25%. Â
Building on a recent trade deal that lowered U.S. tariffs on South Korean vehicles, Hyundai is shifting its focus toward a future beyond traditional cars. This investment will specifically fund a new AI data centre, hydrogen infrastructure, and expanded robotics manufacturing.Â
Leveraging 50,000 advanced chips recently purchased from Nvidia, Hyundai aims to accelerate its development of self-driving technology and smart factories, complementing NVIDIA’s $50B China AI Bet Stuck in Security Limbo.
In January, Hyundai, the owner of Boston Dynamics, said it plans to establish the capacity to produce 30,000 robots annually by 2028. This ambitious move is also a major win for President Lee Jae Myung’s administration, which has been encouraging major corporations to invest in industrial hubs outside of Seoul to boost regional economies.Â
