With the Hyundai Motor Group starting construction of its first production plant in the Middle East at King Abdullah Economic City (KAEC) near Jeddah, Saudi Arabia, Vice Chairman Jang Jae-hoon emphasized on the 14th (local time) that "expanding overseas investment will not hinder domestic investment."
Vice Chairman Jang made these comments during a press conference at the site of the Saudi plant opening, stating, "Global growth is our top priority," and added, "I do not think domestic investment will be neglected or inhibited as a result." He continued, "The group plans to invest about 25 trillion won domestically this year," and noted, "If we compare to the U.S., we announced investment plans of 31 trillion won over four years there."
Vice Chairman Jang mentioned expanding investments in the domestic industrial ecosystem and strengthening the institutional sector of advanced technology as investment destinations for the 25 trillion won. He stated, "In Korea, we are considering expanding investment beyond simple vehicle assembly to various areas such as mobility services, artificial intelligence (AI), robotics, and energy," and said, "In the short term, we aim to enhance product and service competitiveness, and in the long term, we will strengthen Korea's role as a global strategic hub."
Such remarks by Vice Chairman Jang are seen as a measure to dispel concerns that domestic investment would be neglected due to the Meta Plant America in Georgia, U.S., and the Saudi plant opened in February.
Hyundai plans to expand its market to neighboring countries, starting from its production base in Saudi Arabia.
Vice Chairman Jang remarked, "Saudi Arabia has a significant influence within the Gulf Cooperation Council (GCC) countries," and noted, "Considering future directions like entering North Africa, the establishment of the Saudi plant holds great significance." The GCC is an international organization formed by six countries—Saudi Arabia, Bahrain, Oman, the United Arab Emirates, and Kuwait—focusing on cooperation and exchange.
He added, "The Saudi government is showing considerable interest in the automotive industry," and emphasized, "Two other companies are also entering the automotive sector around the same time as we are, and I believe our role will be clear during this developmental phase."
Hyundai aims to establish a hydrogen ecosystem locally in Saudi Arabia. Vice Chairman Jang stated, "The Saudi government is highly interested in hydrogen or energy derived from crude oil extracts and has been conducting proof-of-concept projects for the past 2 to 3 years," and mentioned, "When considering expanding these areas into mobility, how we establish the hydrogen ecosystem will be a topic of discussion."