Hyundai Motor launches future strategy division overseeing M&As

Hyundai Motor Group has created a future business strategy division that serves as a control tower for the automotive group’s expansion into new areas through mergers and acquisitions and startup investments, according to industry sources.

After a recent organizational reshuffle, the parent of Hyundai Motor Co. and Kia Corp. has launched the Future Strategy Division under the Planning and Coordination Division led by Hyundai Motor Group Vice Chairman Chang Jae-hoon, said the sources on Friday.

The new unit will focus on exploring and fostering new businesses such as artificial intelligence, electric vehicle infrastructure, autonomous driving, robotics and urban air mobility.

It will be headed by Hyundai Motor Vice President and venture investment expert Jung Ho-geun. Before joining Hyundai Motor as vice president last year, he oversaw startup investments at global financial service firms such as Fidelity Investments and Deutsche Bank.

The Planning and Coordination Division has now been split into two units.

The remaining unit, which retains the same name, is focused on planning and coordination across Hyundai Motor Group. It consists of 15 teams, overseeing sustainable management, carbon-neutral strategy, back-office services and transparent management.

The launch of the Future Strategy Division came after the South Korean automobile giant earmarked 14.4 trillion won ($1 billion) for strategic investments, including M&As and stake purchases, over the next 10 years through 2033.

During the same period, it aims to pump 22.1 trillion won into its “Mobility Game Changer” initiative to transform into software-driven vehicles and enhance self-driving technology, urban air mobility and robotics.

That is on top of its capital expenditure and R&D spending plans of 51.6 trillion won and 54.5 trillion won, respectively, for the same period.

“In the past, our keyword was speed, but now it is preparedness,” said Chung Euisun, Hyundai Motor Group chairman and CEO, in a recent message to employees.

“Hyundai Motor Group must lead the shift in industrial paradigms and make bold investments in key areas. Only a well-prepared organization can make quick and accurate decisions,” he noted in the message.

Since Chung took over as the group CEO in October 2020, Hyundai has ventured into new technology such as robotics, autonomous driving and urban air mobility fields.

In 2021, it acquired an 80% stake in Boston Dynamics, known for the dog-like robot Spot, from SoftBank Group for $880 million.

In 2024, both Hyundai Motor and Kia posted their largest-ever sales, driven by brisk sales of premium models and SUVs.

However, they are striving to catch up to Tesla Inc., the world’s largest EV maker, amid slowing demand for EVs and the rise of Chinese competitors such as BYD Co.

Last month, José Muñoz, a former Hyundai Motor global chief operating officer and head of its North and South American operations, took the helm of the carmaker, succeeding Vice Chairman Chang Jae-hoon, as its first non-Korean CEO.

By Jung-Eun Shin, Bo-Hyung Kim and Gil-Sung Yang

newyearis@hankyung.cm


Yeonhee Kim edited this article.