Lee Min-hyung joined The Korea Times in 2014 and has worked as a journalist mainly in Korea’s finance, tech and automotive industry. He specializes in content creation, breaking news and in-depth analysis currently on transportation and mobility. You can reach him via mhlee@koreatimes.co.kr.
Hyundai Motor Group realigns portfolio for physical AI
Boston Dynamics' Atlas humanoid robots are displayed at Hyundai Motor headquarters in Seoul, March 26. Courtesy of Hyundai Motor
By Lee Min-hyung
Hyundai Wia, Mobis deepen push for robot business
Hyundai Motor Group is accelerating a sweeping business reorganization by realigning its key affiliates’ portfolio around robotics and physical artificial intelligence (AI).
The shift began with Hyundai Wia’s reported plan to consider divesting its defense business to Hyundai Rotem, so the former can focus more on its robotics business.
The drive is seen as part of the group’s strategy to streamline overlapping or fragmented operations across its affiliates and speed up its expansion into the lucrative robotics area.
Hyundai Mobis is also undergoing a notable transformation. The auto parts arm of the group is phasing out traditional exterior component businesses such as bumpers and lamps, while boosting its push into robotics.
Starting in 2021, the company has included the manufacturing and sales of robots and robot components as its corporate business objectives. It already shared its plan to mass-produce actuators, a key component for advanced robots.
Hyundai Motor is standing at the center of the group-wide push for its transformation into physical AI.
The carmaker unveiled its latest humanoid robot — the Atlas — at this year’s CES tech fair in Las Vegas, underscoring its ambition to expand beyond the traditional automotive sector into next-generation intelligent robotics. The robot was designed by the group’s robotics arm, Boston Dynamics.
Hyundai Motor Group Executive Chair Chung Euisun attends the 2026 Semafor World Economy summit at a hotel in Washington, D.C., April 13. Courtesy of Hyundai Motor
The group-wide drive for robots and physical AI appears to serve as a key factor in building investor confidence.
According to data from the Korea Exchange, Hyundai Motor’s shares closed at 534,000 won ($360) on Thursday, a gain of 5.12 percent from the previous trading day. Shares of Hyundai Wia also increased 6.09 percent during the same period.
Market analysts remained optimistic over the outlook of Hyundai Motor Group, as the firm has a competitive edge in the robot-driven AI business.
“Hyundai Motor Group has a strong core in securing massive datasets, as it is the world’s third-largest carmaker by vehicle production numbers,” KB Securities analyst Kang Seong-jin said.
Boston Dynamics also remains clearly ahead of its rivals in AI robotics, which, according to the analyst, will enable the automaker to expand its physical AI presence faster than conventional manufacturing players both in Korea and abroad.
The brokerage house maintained a target stock price of 800,000 won for Hyundai Motor Group.
Top executives at Hyundai Motor Group also expressed confidence in the firm’s transformation.
“By 2028, Atlas humanoid robots will be deployed at our manufacturing facilities, and the group will produce up to 30,000 Atlas robots annually by 2030,” Hyundai Motor Group Executive Chair Chung Euisun said in a recent overseas media interview.
The market is reacting positively to the firm’s renewed vision. Shares of Hyundai Motor soared Friday, reaching a 185 percent gain from last year.