Analysis of Leadership by Chung Euisun: 'Hyundai Motor's Big Picture'

Hyundai Motor Group Focuses on the Era of ‘Physical AI’
Collaboration with Nvidia on Data Centers and More Takes Shape
Secures 50,000 AI Chips out of 260,000, Like Samsung and SK
Declares Itself an ‘AI Company’ Beyond an Automobile Manufacturer

On the 30th of last month, at a chicken restaurant in Gangnam, Seoul, Chung Euisun, Chairman of Hyundai Motor Group, made a statement. That day, three titans who move the global economy gathered together: Chung Euisun of Hyundai Motor Group, Lee Jaeyong of Samsung Group, and Jensen Huang, CEO of Nvidia, who stands at the center of the global tech industry in 2025.

This meeting, initiated at the suggestion of CEO Huang-who wanted to experience Korean culture firsthand-became a major talking point simply because these global leaders met in a popular, everyday venue in the heart of Seoul. The scene drew a huge crowd. Chairman Chung introduced himself as “the guy who makes cars,” closing the distance between himself and the public.

The phrase “the guy who makes cars” is the most succinct way to capture the essence of Hyundai Motor Group’s business as of 2025. However, Chairman Chung’s vision for the company’s future goes far beyond simple automobile or mobility manufacturing. His focus has recently shifted toward the broader and higher world of “Physical AI.”

Let’s break down the symbolism and significance of this meeting. The day after the gathering, at the Asia-Pacific Economic Cooperation (APEC) CEO Summit, Nvidia announced a massive partnership to supply more than 260,000 AI chips-including its latest GPUs-to Korea. As AI rapidly penetrates industries and daily life worldwide, the value of high-performance chips essential for advanced AI implementation has soared. Nvidia’s high-performance chips have become a critical industrial resource that “money alone can’t buy.” Nvidia revealed plans to prioritize supplying more than 260,000 of these crucial AI chips to Korean companies. If the plan goes ahead, Korea will become the world’s third-largest holder of high-performance AI chips, after the United States and China.

But there’s an important point to note here. It’s understandable that Naver-a leading domestic IT company developing its own AI model-was allocated 60,000 chips, and that Samsung and SK, both with semiconductor and IT industry backgrounds, received 50,000 each. However, Hyundai Motor Group, an automobile manufacturer, also secured an equal share of 50,000 chips. Why would a car company need so many AI chips?

The Ministry of Science and ICT, Hyundai Motor Group, and NVIDIA signed an MOU for "Advancing Domestic Physical AI Capabilities" at the APEC venue in Gyeongju on the 31st of last month and announced a joint cooperation investment plan. (From left) Paek Jongmin, Minister of Science and ICT; Jensen Huang, CEO of NVIDIA; President Lee Jae-myung; Chung Euisun, Chairman of Hyundai Motor Group. Provided by Hyundai Motor Group. Photo by Hyundai Motor Group

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Nvidia believes the AI industry is now shifting from the online world to the physical world. This marks the advent of the “Physical AI” era, where AI operates in real-world spaces-such as robots, autonomous vehicles, and smart factories. In this era, AI does more than analyze data or improve work efficiency; it transforms human life itself. Humanoid robots that handle household chores, fully autonomous vehicles that require no driver, and factory equipment that can diagnose and repair itself all fall under the domain of Physical AI.

Hyundai Motor Group is the company most advanced and confident in this field. By acquiring Boston Dynamics, Hyundai secured robotics technology and is now developing humanoid robots powered by AI. The company also plans to operate a factory in the United States that will produce 30,000 robots per year. The potential for growth is especially great in autonomous driving, often called “the flower of Physical AI.” The 50,000 GPUs will serve as a foundation not only for in-house development of autonomous driving systems but also for building a new autonomous driving ecosystem. When AI technology is applied throughout the manufacturing process, the entire landscape of car production will change. Smart factories powered by AI are far more efficient than traditional automated lines, leading to cost savings and greater consumer benefits.

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This blueprint is closely aligned with Hyundai Motor Group’s management philosophy of “Progress for Humanity.” Since becoming Executive Vice Chairman in 2018, Chairman Chung has declared the company’s transformation into a “smart mobility solutions provider.” The ambition was to evolve beyond a car manufacturer into a company that offers all solutions for human mobility and life. Now, that vision is expanding from “mobility solutions” to a new dimension: “Physical AI.”

When discussing his management philosophy, the word “innovation” is always present. Chairman Chung firmly believes that technology only has value as innovation when it positively changes people’s lives. In an interview with the U.S. automotive media outlet Automotive News, he emphasized, “Technology that does not meet real human needs is meaningless. The most important thing is that technology contributes to improving people’s actual lives.”

His remarks clearly reflect Hyundai Motor’s philosophy of “technology for humanity.” The company’s goal is not to make faster cars or smarter machines, but to connect people and society through technology and to expand the concept of mobility to “improving the quality of life for all humanity.” The worldview of “the guy who makes cars” is now expanding beyond automobiles to a world of “Physical AI,” where AI and robotics are fused.

Chairman Chung’s innovative leadership is revealed more through action than words. Although he is known as a quiet and cautious leader, he demonstrates quick thinking and boldness at critical moments. Some say his quick wit and breakthrough ability are reminiscent of his grandfather, the late founder Chung Ju-yung.

At the G20 Summit in Indonesia in 2022, the Genesis G80 electric vehicle was chosen as the official protocol car. The announcement event for the protocol car selection was held locally in 2021, and former Indonesian President Joko Widodo attended in person. Chairman Chung was tasked with introducing the Genesis electric vehicle to the former president. As the two posed for photos with slightly awkward smiles in front of the Genesis G80 and looked around the vehicle, Chairman Chung made a sudden suggestion.

The original plan was simply to explain the electric car from the outside and move on. The president’s movements are always meticulously coordinated in advance, and there was no plan for him to sit in the driver’s seat. Chairman Chung was well aware of this. Although former President Widodo was momentarily surprised, he soon nodded in agreement, encouraged by Chairman Chung’s expectant look.

Expanding vision through robots, autonomous driving, and smart factories
Management philosophy gains value only when it is for people
Leadership in action, 'quick wit and resourcefulness' shining on the ground
G20 protocol vehicles and White House investment announcement... Turning crisis into opportunity

Chairman Chung quickly opened the driver’s door and guided the president inside, then sat in the passenger seat himself. He explained the vehicle’s features, performance, and design highlights without hesitation. “Why don’t you try starting the engine?” he suggested. However, since this demonstration was unplanned, there was no key in the car. While staff hurried to find the key, Chairman Chung continued his explanation without missing a beat-covering Hyundai and Genesis’s technological strengths and the direction of vehicle development tailored for Indonesian road conditions. He filled the momentary gap with a natural flow of conversation.

Chairman Chung excels at this kind of “on-site salesmanship.” He understood better than anyone the symbolic power and local impact of a photograph showing a national leader sitting in the driver’s seat of a Hyundai electric vehicle. A diplomatic official who attended the event commented:

The large-scale investment announcement at the White House earlier this year is also credited to Chairman Chung’s proactive judgment and action. In March, he announced a strategic investment of $21 billion (about 30 trillion won) in the United States over four years through 2028. The announcement was made in the presence of President Trump, with Chairman Chung delivering the statement. The timing was also notable, coming just before the Trump administration’s declaration of reciprocal tariffs on April 2. This was not only the fastest response among Korean companies but also ahead of Japanese companies such as Toyota and SoftBank.

Industry observers believe that Hyundai Motor, which stands to be most directly affected by reciprocal tariffs, moved ahead of the crisis. On the other hand, some within the Korean government criticized the move, arguing that Hyundai’s early “investment card” weakened Korea’s bargaining power during ongoing Korea-U.S. negotiations.

Experts analyze that, for Hyundai Motor, whose survival depends on the U.S. market, acting preemptively was inevitable. As global supply chains are constantly being reorganized, companies must make immediate decisions and seize opportunities to survive. In contrast, governments must go through negotiation and institutional procedures, making a speed gap between the two structurally unavoidable. The real issue is how to bridge that gap. Policy coordination and institutional safeguards must ensure that corporate survival instincts do not diverge from national strategy. Otherwise, the burden will inevitably fall on industry and the national economy as a whole.

Between US Investment and the Domestic Ecosystem, the 'Management of Balance' is Put to the Test
The Goal is Not a Fast Car, but to Change Human Life Through Technology

The challenge ahead for Chairman Chung is also to find “balance.” Striking a balance between global expansion and responsibility as a Korean company will be his greatest concern. Hyundai Motor Group, which sells over 7 million vehicles annually, is the world’s third-largest automaker. Accordingly, its management philosophy has expanded from “reviving the Korean economy” to “progress for humanity.” In the past, the question was, “How can we boost the national economy through exports?” Now, it has become, “How can we change the lives of consumers around the world?”

The problem arises when the company’s global strategy conflicts with Korea’s national interest. Based on last year’s sales figures, Hyundai Motor Group sold more cars in the United States than in Korea. Therefore, expanding local investment to strengthen its U.S. market position is inevitable. The United States is demanding increased local production to create more domestic jobs.

However, increasing U.S. production inevitably reduces the operating rate of domestic factories. If Hyundai, which accounts for a significant portion of Korea’s exports, weakens its roots as a Korean company, this becomes not just a business strategy issue but a problem for the entire national economy and industrial ecosystem. As of 2024, Hyundai Motor Group directly employs about 200,000 people in Korea. Including partner companies, the employment impact spreads across the entire industry.

Professor Lee Moowon of Yonsei University’s School of Business advised, “Even if the global trade environment changes rapidly, companies should not forget their original strategies. Rather than following government policy, companies should adhere to market logic. Earning more profits overseas ultimately benefits our economy as well.”

Hyun Jeong-seon, Chairman of Hyundai Motor Group, attended the Korea-US Business Roundtable held at the Willard Hotel in Washington DC last August and discussed with Jensen Huang, CEO of Nvidia. Photo by Yonhap News

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Similar concerns arise in the transition to electrification, SDVs (software-defined vehicles), and smart factories. As the shift to new industries accelerates, finished vehicle manufacturers gain efficiency, but restructuring among internal combustion engine-focused parts suppliers becomes inevitable. Balancing profitability with employment stability, considering both direct and indirect jobs in the partner ecosystem, is another challenge for Chairman Chung.

Former Minister of SMEs and Startups and former Democratic Party lawmaker Park Youngsun offered similar advice. She said, “Globalization of companies is an inevitable trend, and conflicts with the interests of the domestic community may arise in this process. In such cases, it is the government’s (and ministers’) role to serve as the counterbalance.”

Ultimately, the greatest challenge facing Chairman Chung is to ensure that companies, government, and society each fulfill their roles and achieve harmony. In a reality where global corporate strategy and national interests collide, leadership that maintains balance and steadfastly upholds the company’s vision is needed more than ever. Having grown through numerous crises and changes, Hyundai Motor Group is once again expected to offer a new answer through “Korean-style innovation.”