Nam Hyun-woo has worked as a staff writer at The Korea Times since 2013, mostly covering business and politics. He currently belongs to the Business Desk where he covers topics such as emerging tech, AI, ICT and Korea's chaebol community. Prior to joining the team, he was the paper's correspondent for the presidential office of Korea during the Yoon Suk Yeol and Moon Jae-in administrations.
Hyundai Motor, Naver to spearhead Korean New Deal
Hyundai Motor Group Executive Vice Chairman Chung Euisun speaks during a televised announcement of Moon Jae-in government's Korean New Deal investment initiative. Courtesy of Hyundai Motor Group
By Nam Hyun-woo
By Nam Hyun-woo
Hyundai Motor Group and portal service firm Naver will play leading roles in President Moon Jae-in's Korean New Deal plan, as the government slates carbon neutral mobility and digital economy as the two main pillars of the investment initiative.
The leaders of the two industrial giants introduced their current technologies in the digital economy and eco-friendly mobility businesses during Moon's announcement of the Korean New Deal, pledging to contribute to the country's economic revitalization efforts.
“The hydrogen fuel cell and electric mobility businesses will be core items for the future, and the government's initiative to nurture eco-friendly industries will be an important step toward that,” Hyundai Motor Group Executive Vice Chairman Chung Euisun said during his televised presentation to Moon. “By 2025, Hyundai Motor Group brands will roll out 23 electric vehicles and sell 1 million of them to occupy 10 percent of the global market. … Also, we will focus on expanding hydrogen fuel cell vehicles in the U.S., European and Chinese markets.”
Chung's remark came after President Moon Jae-in announced the Korean New Deal, a set of initiatives under which the country will spend a combined 160 trillion won ($132.7 billion) by 2025 to nurture carbon neutral industries through its Green New Deal and the digital economy through its Digital New Deal.
Under the presidential plan, the country will invest 73.4 trillion won in eco-friendly industries' growth, 42.7 trillion won of which will come from the state coffer.
The central points of this plan are electric vehicles (EVs) and hydrogen fuel-cell electric vehicles (FCEVs). The government said it plans to have 1.13 million passenger and commercial EVs by 2025, as well as improving the country's EV charging infrastructure. Also, the government seeks to increase the number of FCEVs to 200,000 by then.
Hyundai Motor is already making efforts to expand EVs and FCEVs. Since May, Chung has met Samsung Electronics Vice Chairman Lee Jae-yong, LG Group Chairman Koo Kwang-mo and SK Group Chairman Chey Tae-won at their battery plants and discussed technologies for advanced EV batteries.
Chung's outings were interpreted as part of Hyundai Motor Group's efforts to secure enough batteries and advanced technologies amid the outlook that EV battery demand will outpace supply as early as next year.
“Recently, I visited the battery units of Samsung, LG and SK and had meaningful discussions with their chiefs,” Chung said during the presentation. “I am very proud that the three firms leading the global battery industry are based in Korea, and will enhance cooperation with them for leadership in the global eco-friendly mobility market.”
During the presentation, Chung said Hyundai Motor will come up with an advanced fuel cell system that can provide doubled longevity at half the cost in the next three to four years, adding the carmaker will spare no efforts to become a top-tier eco-friendly firm in the EV and FCEV businesses.
Under the Digital New Deal, Naver is expected to take a leading role.
Naver CEO Han Seong-sook said during her presentation that the company's data processing and analysis capability has played a key role for small business owners to expand their coverage, and its data centers will be the “brain” for developing robotic technology.
“Naver will open data analyzed by its artificial intelligence (AI) technology to the public through cloud computing,” Han said. “And we hope AI researchers and other industries will freely use the data and spur the Fourth Industrial Revolution here.”
To support digital firms, the country will spend 58.2 trillion won to nurture data, networks, artificial intelligence and contactless industries as well as digitizing social overhead capital.
The government also pledged to spend 28.4 trillion won to improve the country's social safety net to enhance the job security of freelancers and gig workers, as well as expand the coverage of the national employment insurance.