Hyundai Kia to Invest W9 Trillion

Hyundai Kia Automotive Group, South Korea's top automaking conglomerate, will invest a total of 9 trillion won (US$5.9 billion) in facility expansion and research and development this year, according to Yonhap News Agency.

This year's investment is similar to that of last year and reflects its commitment to helping overcome the current economic crisis, said the group which owns the nation's top two automakers, Hyundai Motor and Kia Motors.

Of the total, 3 trillion won will be earmarked for the development of fuel-efficient and environmentally-friendly vehicles, and other research activities, the group said.

Through the investment, the group aims to put hybrid cars on the domestic market and increase hybrid car output to 30,000 units next year.

The remaining 6 trillion won will be invested in new plants and equipment, with 2 trillion won of that money to be injected into completing an integrated steel mill, it said.

Hyundai Steel, the group's steel arm and South Korea's second-largest steel maker, plans to put the integrated steel factory into operation in April next year. Currently, construction is 58 percent complete.

The group said its investment will likely help create jobs and that it will make greater efforts to support its struggling parts suppliers which have been hit by car factory shutdowns.

Top automaker Hyundai Motor said Thursday it again idled some of its production lines to cope with a rising inventory of unsold vehicles amid sinking demand at home and abroad.

In January, Hyundai saw its vehicle sales tumble 26.7 percent to 179,044 units, buffeted by the global economic slump.