[Jeong Eui-seon Ho 2 Years②] From Robots to UAM... Transforming into a Future Mobility Company

Major Mergers and Acquisitions Since Chairman's Inauguration
"Chairman Jeong's Role as a First Mover is Positive"

Editor's Note"To make Hyundai Motor a world-class company." (March 1999, Chung Mong-koo, Chairman of Hyundai Motor Board of Directors, inauguration)

"We aim to become a beloved company by realizing humanity's dreams together and sharing the fruits with customers worldwide." (October 2020, Euisun Chung, Chairman of Hyundai Motor Group inauguration) Euisun Chung, Chairman of Hyundai Motor Group, will mark his second year in office on the 14th. Although Chairman Chung joined the company early and took on various roles surrounding automobiles, the reality he faced upon inauguration was a completely different environment from the past. While Chung Ju-yung, founder of Hyundai Group, and Chung Mong-koo, Honorary Chairman of Hyundai Motor Group, laid the foundation to make the name 'Hyundai' known in the global finished car market, which had been built over 100 years centered on leading advanced country companies, Chairman Euisun Chung inherited this and was tasked with navigating the industry’s period of upheaval. Therefore, it is seen that he is in a position not only to refine what has been done well so far but also to attempt things no one has done before and gain recognition in the market. Now, two years later, we look at the achievements Chairman Chung has made and review the remaining challenges.

[Asia Economy Reporter Hyunseok Yoo] Since Euisun Chung took office as the head of Hyundai Motor Group, the group has transformed from a simple finished car manufacturer into a future mobility solution company encompassing autonomous driving, Advanced Air Mobility (AAM), robotics, and more.

During his tenure as Vice Chairman of Hyundai Motor, he presented the vision to "transform Hyundai Motor from an automobile manufacturer into a smart mobility solution provider" and has taken concrete actions by carrying out significant mergers and acquisitions (M&A), not just empty words. This is why Hyundai Motor Group is being evaluated as transforming from a 'fast follower' to a 'first mover.'

The full-scale M&A began after his inauguration as Chairman, aligned with the portfolio strategy of "50% finished cars, 30% AAM, 20% robotics" that he announced as Senior Vice Chairman. In June last year, Hyundai Motor Group acquired the U.S. robotics company Boston Dynamics for over 1 trillion KRW. Chairman Chung also invested his personal funds in this acquisition. Boston Dynamics owns the quadruped robot 'Spot,' the bipedal humanoid robot 'Atlas,' and 'Stretch,' specialized for warehouse and logistics facilities.

The acquisition of Boston Dynamics was just the beginning. This year, the group has invested in software (SW) such as autonomous driving. It acquired the domestic autonomous driving startup '42dot.' 42dot is a startup that has been developing autonomous driving software and mobility platforms. Starting with this, the group plans to respond to market changes by promptly launching a global software center.

Alongside this, Hyundai Motor, Kia, and Hyundai Mobis have agreed to invest $424 million (approximately 551.9 billion KRW) to establish a robotics artificial intelligence (AI) research institute in Cambridge, Boston, Massachusetts, USA. The robotics AI research institute aims to secure foundational technologies that will underpin next-generation robots. It will continuously develop robotic technologies such as motion and cognitive intelligence while utilizing data collected through interactions with external environments to learn and validate their effectiveness. Ultimately, Chairman Chung’s plan is to challenge the limits of robot control through this.

Seonjae Song, a researcher at Hana Financial Investment, explained, "As cars evolve beyond electric vehicles to autonomous driving, differentiated IT and software technologies become increasingly important. Hyundai Motor Group’s equity investments are at the execution level of these plans, and it is positively evaluated because external infusion can accelerate securing future technologies."

Last month, Hyundai Motor Group exchanged shares worth 750 billion KRW with KT. They agreed to jointly develop 6G communication standards optimized for autonomous vehicles. They also plan to expand electric vehicle charging infrastructure. Additionally, they plan to collaborate on security communication module technologies essential for future business expansion.

Preparations for AAM are also steady. The urban air mobility (UAM) corporation 'Genesis Air Mobility,' established in 2020, changed its name to 'Supernal' last year. The name carries the meaning of 'the best quality celestial mobility solution.' Supernal aims for commercialization by 2028.

Chairman Chung’s activities have been recognized globally. Newsweek awarded him the 'Visionary of the Year' award at the '2022 Great Disruptive Innovators in the Global Automotive Industry' ceremony held in April. This was for transforming Hyundai Motor Group into a 'smart mobility solution company,' redefining the mobility domain to enable free movement and connectivity for humanity beyond the framework of the automotive industry.

Professor Pilsoo Kim of Daelim University emphasized, "Among other finished car manufacturers, Hyundai Motor Group is moving forward quickly. Future mobility is a market where it is extremely difficult unless you become a first mover, and if Chairman Chung’s role is to lead as a frontrunner, it is very positive."

This content was produced with the assistance of AI translation services.