Hyundai Motor Group concentrating on hydrogen fuel cell vehicle development

2015_02_hydrogen-fuel-cellThe Hyundai Motor Group is planning to rank second in the global eco-friendly car market by 2020. To this end, the company is focusing on hydrogen fuel cell vehicle R&D at the Gwangju Creative Economy Innovation Center. At the same time, it is going to raise 177.5 billion won (US$162.3 million) in funds with the government for startups in the auto industry and better business management at small and medium enterprises. The funds include a so-called hydrogen fund of approximately 15 billion won (US$13.7 million), which will be spent on the hydrogen fuel cell industry. Industry-academic idea collection, expert consulting, and mentoring are scheduled, and stations are set up for LPG and CNG-based hydrogen and electric power generation, sale, and storage.

Joint research activities and programs will be underway as well to replace imported hydrogen vehicle parts with domestically-developed ones. Specifically, these will cover the development of separation membranes, base materials, storage, and transfer techniques for fuel cells and external power transmission technology, and so on. According to the Nikkei BP Cleantech Institute, the global fuel cell market is estimated to reach 400 trillion won (US$366 billion) in 2030. The hydrogen fuel cell industry of Korea is expected to exceed 107 trillion won (US$97.9 billion) by 2040, and they expect to create about 175,000 jobs and produce 23.5 trillion won (US$21.5 billion) of goods.

For full article, see Business Korea.

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IT sector to drive economic growth

2014_12_growth_industriesPolarization will continue to become a key feature of not only Korean society but also the landscape of industries this year, the Hana Institute of Finance said in its recent industries outlook report for 2014. “The export-driven Korean economy will be on a gradual recovery track in line with a pick-up of the global economy, but the polarization by industry and by corporate ranking within industries will intensify,” the report pointed out.

By industry, the information technology sector, led by Samsung Group and other tech giants, will continue to power the nation’s economic growth, while non-IT sectors except the car industry are forecast to remain stagnant. The projection means that economic dependence on the nation’s top two corporate names ― Samsung Electronics and Hyundai Motor ― will further deepen this year.

Data from the Korea Exchange found Samsung Electronics and Hyundai Motor accounted for more than half of net profits generated by the top 100 companies by sales Korea’s as of 2012.  The share of net profits generated by the two heavyweights continued to increase from 19 percent in 2007 to 35 percent in 2009, 36 percent in 2011 and a record-high 51 percent in 2012.

For full article, see Korea Herald.

Hyundai Motor Group set to invest record $9.45 bn in automobile business

South Korea’s largest automotive group Hyundai Motor Group will invest a record 10 trillion won ($9.45 billion) in the car business alone this year. This year’s planned investment increased 500 billion won from that of last year.

The group is forecast to focus on investing in research and development (R&D) this year as it decided to boost investment without a plan to build new plants, unlike it did last year.

Hyundai Motor Group said Tuesday it decided to invest 10 trillion won in the group’s automobile business including Hyundai Motor, Kia Motors, Hyundai Mobis, Hyundai Kefico, and Hyundai Autron this year. Last year, the group had made investment worth 9.50 trillion won in the car business. The group’s investment in the automobile segment this year will be devoted to research facilities which have been restructured in the beginning of this year. In other words, most of the funds will be spent on R&D and quality control.

For full article, see Maeil Business.