Kakao Mobility, HD Hyundai XiteSolution sign MOU to build unmanned logistics platform

HD Hyundai XiteSolution Co-CEO Song Hee-jun, left, poses with Kakao Mobility CEO Ryu Geung-seon during the two firms' memorandum of understanding signing ceremony at HD Hyundai Global R&D Center in Seongnam, Gyeonggi Province, Tuesday. Courtesy of Kakao Mobility

Kakao Mobility, Korea’s dominant ride-hailing and taxi app, and HD Hyundai XiteSolution, a major manufacturer of heavy industrial machinery and construction equipment, signed a memorandum of understanding Monday to jointly develop an autonomous logistics network driven by physical artificial intelligence (AI).

The partnership aims to merge the digital and physical realms of supply chain management into a single standardized architectural framework. Under the agreement, Kakao Mobility will provide the software backbone — an integrated control and task optimization platform designed to orchestrate fleets of disparate vehicles, alongside its proprietary transportation management systems. HD Hyundai XiteSolution will supply the hardware muscle, contributing its fleet of autonomous industrial vehicles, including unmanned forklifts and specialized on-site logistics automation tools.

Moving forward, the two companies plan to launch joint proof of concept trials at active logistics facilities, leveraging real-world operational data to refine their technologies, build new business models and pursue global commercial opportunities. Their long-term objective is to build an omnibus management system capable of piloting a diverse array of automated guided vehicles and autonomous mobile robots through a unified digital interface.

For Kakao Mobility, the venture marks a strategic push to translate its consumer-facing autonomous experience — honed through urban robot delivery pilots and automated valet parking services — into the industrial sector.

By unifying hardware and software, the companies claim they can eliminate the stubborn data silos that typically fracture the supply chain. In conventional setups, the handoffs between automated order placement, over-the-road "middle mile" shipping and internal warehouse sorting often operate on isolated software networks, causing systemic delays and inefficiencies.

"This collaboration lays the groundwork for leading the logistics automation and physical AI ecosystem by combining HD Hyundai XiteSolution's autonomous vehicle capabilities with Kakao Mobility's platform and service strengths," said Song Hee-jun, co-CEO of HD Hyundai XiteSolution.

Ryu Geung-seon, chief executive of Kakao Mobility, characterized the agreement as "a meaningful starting point" for scaling the company's vehicle control capabilities from boutique robotic services into heavy industrial settings.

This article was published with the assistance of generative AI and edited by The Korea Times.