Hyundai, LG Unveil 3-Year Investment & Hiring Plans

South Korean conglomerates Hyundai Motor Group and LG Group have announced significant investment and hiring plans for the next three years, in a move seen as an attempt to secure their future growth amid the country's struggling economy. This comes at a time when South Korea's long-term economic growth is forecasted to be low, with only 1.4 percent growth recorded last year. 

Hyundai Motor Group has revealed plans to hire 80,000 workers within its domestic market by 2026, backed by an investment of 68 trillion won over this period. The company intends to allocate more than half of these new positions (44,000) towards electrification initiatives, software-defined vehicles (SDVs), and other innovative areas considered crucial for future development. Furthermore, Hyundai will also create an additional 118,000 jobs within local parts industries. 

The automaker's investment strategy includes allocating 31 trillion won towards research and development projects while dedicating another 35 trillion won towards facility improvements. 

On the same day as Hyundai's announcement, electronics giant LG Group released its own plan to invest a staggering sum of 100 trillion won domestically by the end of 2028. This amount represents approximately two-thirds of LG’s total investments both locally and internationally during this timeframe. 

Approximately half of this planned expenditure will be allocated toward developing future-oriented technologies such as artificial intelligence (AI), biotechnology and clean energy solutions; as well promising sectors like battery production, automotive components manufacturing and next-generation display solutions. 

To facilitate these developments further still, around fifty-five percent of LG’s investment budget will go directly into research & development projects aimed at transforming South Korea into a world-leading hub for R&D innovation and high-tech manufacturing processes alike. 

These recent announcements follow declarations made back in May 2022 from eleven major South Korean businesses stating that they would collectively spend about one quadrillion sixty-trillion won over the following three-to-five-year span. At that time, both Hyundai Motor Group and LG Group announced their own investment plans targeting 2025 and 2026 respectively. 

However, the recent developments indicate a slight extension in these timelines by one to two years. Other major groups such as Samsung and SK also reaffirmed their commitment to execute on their previously released investment strategies from 2022 seamlessly. 

Overall, these announcements are seen as significant steps taken by South Korean conglomerates towards securing future growth engines within an economic climate currently facing low long-term growth prospects. By investing heavily into R&D projects and creating numerous job opportunities across various sectors of the economy, these companies are not only contributing significantly towards boosting domestic employment rates but also fostering innovation within key areas crucial for future development.