Hyundai Motor, Kia invest $746.3 billion more in 42dot

Hyundai Motor Co. and Kia Corp. will inject 1 trillion won ($746.3 billion) of funds into 42dot, a self-driving vehicle subsidiary of Hyundai Motor Group's software division.

The move is considered to reflect the push toward raising software competitiveness expressed by the conglomerate's chairman Chung Eui-sun, who said, "We will convert all of our models into software-defined vehicles (SDV) by 2025."

Hyundai Motor and Kia on Tuesday said they will acquire 42dot stocks worth over 1 trillion won to maintain control over the company and enhance business competitiveness. Hyundai Motor will buy 4.9 million shares or 55.9% for 632.3 billion won and Kia 3.2 million or 37.3% for 421.6 billion won. 

Last year, the group acquired 42dot, which was founded in 2019 by its CEO and former chief of Naver Labs Song Chang-hyun and is a self-driving technology startup developing an urban mobility operating system. The conglomerate took over 42dot in August last year and reassigned Song to oversee software operations for the entire group.

To this end, Hyundai Motor Group merged the core functions of its TaaS (transportation as a service) division, which oversees mobility services, and AIRS Company, a specialist in artificial intelligence technology, into 42dot. Song is also the head of the Global Software Center, which was launched late last year to systematically develop SDVs.

The group's investment of over 1 trillion won in 42dot also indicates its intent to achieve higher software competitiveness faster. 42Dot is known to possess empirical data and advanced technology, especially for self-driving vehicles.

Write to Nan-Sae Bin at binthere@hankyung.com