On Monday, May 26, Hyundai Motor Group made a significant leap into the future of mobility and technology. The South Korean automotive giant launched a new startup investment fund under its ZER01NE accelerator platform. This marks the third dedicated fund from Hyundai, with a total size of 125 billion won (approximately US$91.4 million). The fund targets startups in South Korea, Japan, and Southeast Asia that develop advanced technologies in artificial intelligence, robotics, hydrogen, and cybersecurity.
Hyundai Motor Co. and Kia Corp., the group’s core automobile manufacturing units, each injected 40 billion won into the fund. Hyundai Motor Securities followed with a 10 billion won contribution. Seven other affiliates, including Hyundai Mobis Co., Hyundai Glovis Co., and Hyundai Rotem Co., joined in, ensuring a diversified commitment to innovation.
Strategic Investment to Foster Deep Collaboration
Rather than simply acting as a financial investor, Hyundai Motor Group designed this fund to drive direct collaboration. The group intends to integrate innovations from the startups into its ecosystem. The fund’s mission involves more than just financial backing—it aims to create strategic alliances that enhance competitiveness and operational agility.
Noh Kyu-seung, head of the ZER01NE division, stressed this approach. He said the company wants to generate “meaningful synergies across our affiliates and accelerate our future-ready business initiatives.” This proactive stance shows Hyundai’s eagerness to harness fresh thinking and new tech for its transformation into a mobility solutions provider.
The group will carefully identify startups with high potential and align them with internal teams. This method allows Hyundai to test and scale cutting-edge ideas directly, speeding up the integration of frontier technologies into real-world operations.
Focus Areas: AI, Hydrogen, Cybersecurity, Robotics
The fund’s thematic focus aligns with Hyundai’s long-term strategy. Artificial intelligence remains a top priority, particularly for autonomous driving and intelligent vehicle systems. Robotics represents another pillar, supporting Hyundai’s ambitions in smart manufacturing and logistics automation.
Hydrogen technology features prominently as well. Hyundai already leads globally in hydrogen fuel cell vehicles, and this fund will enhance its R&D base in clean energy. Cybersecurity also takes a central role. As connected and software-defined vehicles become standard, digital safety emerges as a critical need.
By supporting startups in these four sectors, Hyundai aims to leap ahead of competitors in future mobility. The group wants to internalize these innovations quickly, not just invest and wait for external developments.
ZER01NE’s Track Record of Impact
Since the ZER01NE platform launched in 2018, Hyundai Motor Group has consistently pushed forward its startup investment agenda. The first two funds under ZER01NE backed 105 startups. These investments led to more than 200 collaboration projects within the group.
From smart factory solutions and AI-based customer support systems to advanced sensor tech and cloud-based mobility platforms, ZER01NE has played a transformative role. This third fund builds on that foundation, expanding Hyundai’s reach into Southeast Asia and Japan while deepening ties within South Korea’s innovation community.
Hyundai Mobis Strengthens Innovation Leadership
Alongside the fund launch, Hyundai Mobis Co., a leading auto parts maker within the Hyundai Motor Group, shared major achievements in proprietary technology development. The company revealed that it filed more than 7,500 patents over the past three years. Over 3,000 of these patents relate directly to future mobility themes—electrification, autonomous driving, and connected vehicle systems.
During its annual Invention Day held last week at the Yongin research center, Hyundai Mobis highlighted several notable innovations. These include advanced smart key technologies designed to thwart digital key hacking and high-definition heads-up displays for safer and more immersive driving experiences.
Last year alone, Hyundai Mobis submitted around 2,300 patent applications. More than 1,000 patents focused on core future mobility domains, reinforcing Hyundai Motor Group’s shift from traditional vehicle manufacturing to high-tech mobility solutions.
Expansion Across Asia to Fuel Growth
Hyundai Motor Group has traditionally concentrated its core operations in South Korea, but this fund expands the geographical horizon. With Japan and Southeast Asia included, the group wants to access a broader pool of talent, research institutions, and consumer markets.
Japan boasts world-class expertise in robotics and precision manufacturing, while Southeast Asia presents fast-growing digital economies. By investing early in high-potential startups from these regions, Hyundai gains first-mover advantage and strengthens its supply chain resilience.
The group plans to use this fund to diversify its innovation portfolio and hedge against regional uncertainties. At the same time, collaboration with foreign startups will allow Hyundai to localize its mobility services more effectively in international markets.
Creating a Feedback Loop for Innovation
Hyundai’s approach emphasizes integration over acquisition. Rather than acquiring startups outright, the company prefers to nurture them and create mutual growth. This model fosters a feedback loop: startups gain resources, guidance, and market access, while Hyundai gains direct access to agile innovation.
The ZER01NE team works closely with selected startups, offering pilot opportunities, co-development programs, and mentorship. This structure promotes fast iteration and application of new technologies in live business settings. In doing so, Hyundai reduces risk and maximizes return on innovation.
Future Outlook: Startups as Innovation Engines
As mobility shifts from vehicle ownership to services, Hyundai Motor Group adapts by embedding startup agility into its DNA. With increasing focus on software-defined vehicles, green mobility, and smart cities, the role of startups becomes more crucial than ever.
The ZER01NE platform positions Hyundai to act as both a corporate investor and an operational innovator. The group will likely continue launching more funds, perhaps expanding into Europe and North America, as it scales its global vision.
This fund sets a new benchmark for corporate-startup synergy in the automotive sector. Hyundai Motor Group moves decisively, backing its vision with capital, strategy, and execution. The future of mobility won’t wait, and Hyundai intends to lead the race—not follow it.