HD Hyundai Robotics to raise $144.3 mn to bolster AI-powered robots
South Korea’s robotics major has secured backing from NPS and KY PE, valuing it at 1.8 trillion won
HD Hyundai Robotics participated in AUTOMATICA 2025, the world-renowned robotics exhibition held in Germany, in July 2025 (Courtesy of HD Hyundai Robotics)
HD Hyundai Robotics Co., an industrial robot producer under South Korea’s shipbuilding and machinery giant HD Hyundai Co., will raise 200 billion won ($144.3 million) to fuel its push into artificial intelligence-powered industrial robots as a new growth engine.
According to sources in the investment banking industry on Sunday, the Korean industrial robotics leader will issue redeemable convertible preference shares (RCPSs) in September to state-run Korea Development Bank and KY PE, a local private equity firm, to raise 200 billion won.
An RCPS is a preference share that can be redeemed for cash or ordinary shares.
The company plans to channel the proceeds into AI upgrades to make its industrial robots more autonomous and compete better with the spread of humanoid robots on factory floors.
GLOBAL LEADER IN THE INDUSTRIAL ROBOT FIELD
HD Hyundai Robotics, spun off from HD Hyundai Heavy Industries Co. in 2020, is a formidable player in the global industrial robotics market.
HD Hyundai Robotics wins a Red Dot Design Award for its self-developed Teach Pendant User Interface for collaborative robots (Courtesy of HD Hyundai Robotics) The company is a global leader, ranking first or second, in six-axis industrial robots – flexible robotic arms used for welding, painting and assembly – and in flat panel display robots.
It has also been in charge of automating Korea’s auto giant Hyundai Motor Co.'s plants at home and abroad for about four decades.
However, the Korean company was slower than Chinese rivals to move into humanoid robots and now confronts mounting competition from humanlike machines powered by AI on factory floors.
HD Hyundai Robotics hopes to fend off the rise of humanoid robots by empowering its industrial robots with more powerful AI technologies with the fresh investment.
INDUSTRIAL ROBOTS VERSUS HUMANOIDS
Industrial robots are different from humanoid robots in appearance and functions.
Humanoids are designed to resemble human form and movement, offering versatility to operate in human spaces.
Industrial robots, by contrast, are task-specific machines built for speed, precision and repetitive work in controlled settings.
At the core of humanoid robots is physical AI – intelligence embedded in a body that allows machines to perceive, think and interact in the physical world like humans.
(Graphics by Daeun Lee) HD Hyundai’s AI Center (AIC) will develop deep learning-based physical AI for HD Hyundai Robotics’ industrial robots. The investment will also be used in developing special cameras and 3D sensors that will function as their eyes.
The Korean company’s move comes as AI has emerged as a key technology in the global industrial robot market.
Switzerland-based ABB Robotics and Japan’s Panasonic Holdings Co. have actively applied AI technologies to their industrial and collaborative robots.
The global industrial robotics market is forecast to grow from $33.9 billion in 2024 to $60.6 billion by 2030, growing at a compound annual growth rate (CAGR) of 9.9%, according to Grand View Research.
TO TAP IPO
HD Hyundai Robotics is also expected to venture into humanoid development.
It has agreed with Persona AI and Vazil Company to jointly develop humanoid robots designed for shipyard welding tasks, with commercial deployment planned for 2027.
HD Hyundai, Persona AI and Vazil Company will jointly develop humanoids (Courtesy of HD Hyundai Robotics) Over the next two to three years, HD Hyundai Robotics’ lineup will be expanded to cover an entire robotics technologies, ranging from industrial and collaborative robots to humanoids.
With a diversified portfolio, the Korean robotics company is projected to go public after securing funding from the KDB and KY PE.
According to sources, the company has agreed to return the investment through an initial public offering.
HD Hyundai Robotics was valued at 1.8 trillion won during its RCPS sale.
