Hyundai Motor Group is reportedly considering relocating a significant portion of staff from its Namyang Research Center in Hwaseong, Gyeonggi Province, to its headquarters in Yangjae-dong, Seoul, and near Bokjeong Station in Songpa District. This is interpreted as a response to the long commuting times for employees living in Seoul and difficulties in securing research personnel.
According to Hyundai Motor Group officials on the 3rd, the Hyundai and Kia headquarters building in Yangjae-dong, Seocho District, is scheduled to complete remodeling work next year. The remodeling began in the first half of last year.
Several organizations at Hyundai Motor's headquarters left the Yangjae building before and after the remodeling. The Global Business Management Division and the Genesis Business Division have moved to the Tiger 318 Scale Tower building in Yeoksam-dong, Gangnam District, Seoul. The Purchasing Division has also established a new base in a rented building near Seolleung Station.
The Tiger 318 Scale Tower also houses the Domestic Business Division, Brand Marketing Division, and the Global Commercial & LCV (Light Commercial Vehicle) Division. Hyundai Motor Group purchased 50% equity in this building in 2023 and acquired the remaining shares last month.
Within Hyundai Motor Group, many expect that even after the remodeling of the Yangjae building is completed, the relocated organizations will not return. The reasoning is that if the plan was to bring these organizations back, there would have been no need to invest in an additional building in Gangnam. It is anticipated that some organizations from the Namyang Research Center will occupy the space left by the marketing, sales, and purchasing personnel.
A Hyundai Motor Group official said, "Various options for the organization’s placement at the Yangjae building are being considered after the remodeling is completed. Currently, only the basic headquarters organizations, such as human resources, finance, planning, and public relations, remain, so there is a sufficient possibility that some organizations from the Namyang Research Center will move in."
The Namyang Research Center is Korea's largest automotive and mobility research complex, with approximately 13,000 researchers working there. It covers about 3.5 million square meters and is equipped with various facilities, including a comprehensive driving test center, design center, and real vehicle wind tunnel testing facilities, responsible for research and development (R&D) across automotive and component design, testing, and evaluation.
There have been many criticisms about the distance and commuting difficulties for employees at the Namyang Research Center. The city of Hwaseong, where the center is located, is in the southernmost part of Gyeonggi Province and takes about two hours by car from Seoul. Additionally, the location of the Namyang Research Center has been a hindrance in recruiting foreign staff or experienced external talents.
If the distributed placement of personnel from the Namyang Research Center becomes a reality, it is expected that the target would be certain organizations involved in design and software (SW). This is because vehicle testing and product examination require various testing equipment and large testing spaces, making it difficult to leave the current location.
In addition to the Yangjae building, the site of the complex development project near Bokjeong Station in southern Songpa District is also being mentioned as a major candidate where some organizations from the Namyang Research Center are likely to relocate. This site is being developed by Hyundai E&C, a subsidiary of Hyundai Motor Group, which is scheduled to break ground next year. It is close to Pangyo in Gyeonggi Province, where many IT corporations are concentrated, and there are many forecasts that the SW-focused organizations from the Namyang Research Center will move there after completion.
Some analysts suggest that the distribution of organizations and personnel movement from the Namyang Research Center is related to changes in Hyundai Motor Group's R&D leadership. In last year's executive reshuffle, the development of mass-produced vehicles was assigned to Yang Hee-won, Deputy Minister of R&D, while the mobility software sector was divided between Song Chang-hyeon, the CEO of 42Dot and Deputy Minister. As a result, while all R&D organizations were previously centralized at the Namyang Research Center, the interpretation within the group is that the two divisions will now be separated to focus on independent research and work.