Hyundai Motor Group will expand its strategic partnership with KT Corporation, Korea's leading telecommunications company, to lead the future mobility market.
- Joint research on future mobility technologies and multi-faceted business alliance linking core competencies
- Expanding cooperation with telecommunication companies to lead the MECA era
- Continuous synergy creation for future new businesses and long-term strategic partner-ships
SEOUL, September 7, 2022 – Hyundai Motor Group (HMG/ the Group) will expand its strategic partnership with KT Corporation (KT), Korea’s leading telecommunications company, to lead the future mobility market.
Hyundai Motor Group today announced that it will push for comprehensive and extensive cooperation in next-generation communication infrastructure and ICT, including joint research with KT on 6G autonomous driving technology and Advanced Air Mobility (AAM) communication network based on satellite communication.
In addition to joint advanced research on future technologies, the two parties will also diversify their business partnership areas in 5G communication network-based, customized connected car services and security communication module technology collaboration by exchanging existing core competency of respective party.
Hyundai Motor Group and KT agreed to focus on advancing vehicle technologies in the field of Connectivity area, which is the basis for realizing MECA (Mobility Service, Electrification, Connectivity, Autonomous).
Connectivity is a key element of MECA, which enables smooth technology operation only when a stable high-quality communication network is supported. To this end, the global automobile industry is fiercely competing to secure related technologies through partnerships with leading telecommunication companies and exchange of shares.
KT, which commercialized 5G for the first time in the world, is taking the lead in expanding the eco-system of next-generation high-speed communication networks. In addition to landline and wireless communication networks, KT is actively engaged in convergence ICT and data services such as intelligent traffic control and integrated security, which is expected to make Hyundai Motor Group an important partner in strengthening its connectivity business.
The two parties agreed to acquire mutual shares through treasury stock exchange in order to create synergy in future businesses, enhance the execution and sustainability of mutual cooperation, and strengthen long-term partnerships.
Joint research on future mobility technologies and multi-faceted business alliance linking core competencies
Hyundai Motor Group will first proactively cooperate with KT to secure future autonomous driving technologies in preparation for the era of self-driving vehicles. The group plans to jointly develop 6G communication standards optimized for self-driving cars to preoccupy next-generation ultra-gap technologies.
Advanced communication network is critical in autonomous vehicles as smooth and seamless data processes are required due to the increased connectivity of vehicles. Hyundai Motor Group and KT are planning to develop next-generation 6G communication-based autonomous driving technology that can process large amounts of data at a faster pace through demonstration projects and advanced joint research works.
The data transmission speed of 6G is up to 50 times faster than that of 5G. It is expected that it will greatly contribute to enhancing the technical stability of various future mobility, including fully autonomous vehicles and AAM that need to process super-large amounts of data more quickly, such as real-time information collection within seconds.
Hyundai Motor Group and KT will also prepare a satellite-based AAM communication infrastructure. Hyundai Motor Group will take charge of developing AAM vehicles and construction of vertical ports, while KT will establish control and communication networks essential for AAM operations in conjunction with its own communication satellites.
In addition to long-term joint research, the company will expand its business partnership area based on its core capabilities. HMG and KT will expand its EV charging infrastructure by utilizing KT’s business sites and networks across the country. KT’s facility sites are highly accessible, which is expected to help build and spread the charging ecosystem early.
The companies will also consider developing new services in line with the explosive data demand in the era of connected cars.
KT, which has the No. 1 paid on-demand TV subscribers in Korea, will be able to provide optimized customer experiences through supply of high-quality contents, analysis of various big data, and link-age of vehicle and mobile data.
The companies will also explore new businesses based on data and software. HMG and KT will re-view the operation of future technology funds for cooperation in ICT technology development such as big data and plans to collaborate on technologies in the field of security and communication modules, which are essential for future business expansion. It will also conduct a demonstration operation of self-driving shuttles, at KT’s future new buildings.
In addition, the company plans to cooperate in various ESG fields such as expanding the phased use of hydrogen fuel cells in KT’s business areas, converting KT’s corporate vehicles into EVs, and jointly responding to RE100 initiative.
Expanding cooperation with telecommunication companies to lead the MECA era
Hyundai Motor Group has decided to expand and strengthen its strategic partnership in consideration of KT’s rich ICT infrastructure assets and active business vision in the future mobility sector.
The automotive industry is rapidly reorganizing around MECA. Among them, connectivity capability is a key factor in enhancing the competitiveness of MECA’s other fields, such as mobility service, electrification, and autonomous driving.
Mobility service application development and operation, online charging and payment system to expand the EV charging ecosystem, communication network-based operation essential for commercializing autonomous driving, and vehicle to everything (V2X) In order to implement the technology (in which vehicles exchange information with objects such as other vehicles and roads through wired and wireless communication networks), it is possible only when connectivity capabilities linked to high-quality stable communication networks are supported.
Global automakers in other regions are also actively engaged in partnerships and equity exchanges with leading regional telecommunication operators, and are actively seeking to secure connectivity technology bases such as telecommunication infrastructure and ICT.
Hyundai Motor Group has been pushing to expand and distribute “hyper-connected cars” that connect customers’ various lifestyles more safely, freely and conveniently beyond simply connecting wired and wireless communication.
Hyundai Motor Group aims to lead the future mobility market by combining core capabilities with KT to “advance vehicle technology as a connectivity device.”
KT is considered the best partner for Hyundai Motor Group to lead the future mobility market based on its connectivity capabilities and push for various future new businesses for customers.
KT has a wide range of high-quality communication infrastructure — a total of 14 Internet data centers (IDCs), the largest number in Korea including five satellites –that can supplement shaded areas on autonomous driving and the AAM communication network, The advantage is that it can efficiently cooperate with future new projects promoted by Hyundai Motor Group by utilizing internalized large-scale network operation experts. It also has the advantage of telecommunication AI, Recently, it has been actively securing core technologies and talents in business areas such as big data and cloud.
Continuous synergy creation for future new businesses and long-term strategic partner-ships
Hyundai Motor Group and KT have consistently formed a relationship as cooperative partners for many years, including joint participation in AAM, a key future project, technology forums in the field of autonomous driving, and demonstration projects several times.
In September 2020, KT signed an MOU with Hyundai Motor, Hyundai Engineering & Construction Co., Incheon International Airport Corporation, etc. to jointly promote the K-UAM* roadmap, ▲ jointly participate in the K-UAM Grand Challenge, ▲ to cooperate in UAM joint research, including the construction and operation of takeoff and landing facilities.
In order to expand and develop such a strategic partnership with KT, Hyundai Motor Group decided to acquire mutual shares by exchanging treasury stocks between Hyundai Motor (1.0%), Hyundai Mobis (1.5%), and KT (7.7%) and announced the plan via public disclosures.
The exchange of treasury stocks between the two parties is aimed at solidifying business partnership in the mid- to long-term by becoming shareholders of each other, and supplementing cooperative execution. Hyundai Motor Group disclosed the purpose of investment into KT as simple investment purposes.
In addition, HMG and KT plan to form and operate a tentatively named Business Cooperation Committee to promote future new projects and advanced research that require continuous cooperation as well as exchange of core capabilities from a mid- to long-term perspective.
By doing so, Hyundai Motor Group and KT will work together to ensure the continuity of their partnership and secure a technological edge to lead the future mobility market.
*Urban Air Mobility, AM Urban Air Mobility
SOURCE: Hyundai Motor Group
Keyword: Hyundai Motor Group and KT Corporation expand strategic partnership for the future