Korean Auto Stocks Remain Fundamentally Strong Despite Repeated Tariff Risks [Click eStock]

Low Likelihood of U.S. Tariff Threat Materializing
Hyundai Motor’s Future Business Shifts from Cars to Robotics

There is analysis suggesting that the threat of U.S. tariffs will only be a short-term adjustment factor for Hyundai Motor Group’s stock price. This is because the investment focus is shifting from the traditional automobile business to the robotics business, and the impact of tariffs on the robotics sector remains unclear. Additionally, it is noteworthy that there is little anxiety about the tariff threat actually resulting in real damage, and that there is a recurring pattern of resolution as political circles become involved.

On January 28, KB Securities analyzed U.S. President Donald Trump's tariff threats in this way. On January 26 (local time), President Trump stated on his social networking service (SNS) 'Truth Social' account that "the Korean legislature is not fulfilling its agreement with the United States," and announced that he would raise reciprocal tariffs on Korean products, including automobiles, to 25%.

However, it is expected that investor concerns stemming from this will soon be alleviated. Kang Sungjin, a researcher at KB Securities, said, "The National Assembly plans to introduce and review the 'Special Act for Strategic Investment Management between Korea and the United States (Special Act on Investment in the U.S.)' next month." He added, "Above all, investors are familiar with what is known as the 'TACO (Trump Always Chickens Out)' trade opportunity."

The financial markets have already become increasingly accustomed to the pattern of President Trump making hardline statements, only to take a step back at the actual policy stage. Last April, the U.S. announced a 25% tariff on Korean imports, but in July of the same year, it lowered the tariff rate to 15% on the condition of a $350 billion investment from Korea. Subsequently, President Trump warned that a 25% tariff could be reimposed, claiming that "Korea is not fully keeping its promises," and indeed, the 25% tariff was applied. After President Lee Jaemyung's visit to the U.S. in October last year, the two countries agreed to reduce tariffs on automobiles to 15%, with the new rate taking effect from November of that year.

Interest in Hyundai Motor itself is also different from the past. When it comes to the corporate value of Hyundai Motor Group's major affiliates, investors are now focused on future businesses. The threat of tariffs from President Trump, which is unlikely to pose a substantial risk, is not expected to significantly influence investor decisions.

KB Securities assessed Hyundai Motor Group as a global leader in the development of artificial intelligence (AI) humanoids. The long-term growth outlook for the humanoid industry is already positive due to decreasing labor supply. The best capabilities required for humanoid development-including physical capabilities (Boston Dynamics), AI development capabilities (Google DeepMind), and accelerated AI learning using simulation (NVIDIA)-are all being concentrated in Hyundai Motor Group's humanoid project.

Researcher Kang explained, "We factored in 39 trillion won for Boston Dynamics' equity value and 101 trillion won for autonomous driving foundry value into the corporate values of Hyundai Motor and Kia, and 14 trillion won each for Boston Dynamics' equity value into Hyundai Mobis and Glovis." He added, "We recommend Hyundai Motor, Kia, Hyundai Mobis, Hyundai Glovis, and Hyundai Autoever as the top picks within Hyundai Motor Group."

On January 5, 2026 (local time), a day before the opening of the world's largest consumer electronics and information technology exhibition, CES 2026, the next-generation electric Atlas prototype waved during the Hyundai Motor Group press conference held at Mandalay Bay in Las Vegas, Nevada, USA. 2026.1.6 [Joint Coverage] Photo by Yonhap News Agency

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