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Hong Kong’s economy is expected to maintain its expansion into next year, underpinned by resilient exports, firm investment sentiment and recovering consumer demand, Financial Secretary Paul Chan Mo-po said on Sunday.

Writing in his weekly blog, Chan said the city’s exports in 2026 will be supported by a moderately growing global economy, as most international institutions anticipate, and by a recent easing in trade tensions. Locally, improving consumer and business sentiment will sustain spending and investment.

The Hong Kong Special Administrative Region government will seize emerging opportunities while staying vigilant to external risks, such as uncertainty surrounding the pace of US interest rate cuts and potential shifts in global trade, the finance chief said.

The SAR’s gross domestic product has been expanding for 11 consecutive quarters on a year-on-year basis. In the third quarter of this year, the GDP grew by 3.8 percent in real terms — the strongest in more than 18 months.

ALSO READ: HKSAR to revise GDP forecast upward as economic performance improves

With robust performance in exports, consumption and investment, the SAR government has revised up its full-year growth forecast for 2025 to 3.2 percent from the previous range of 2 to 3 percent.

Merchandise exports in the first three quarters surged 11.3 percent in real terms, powered by shipments to the Chinese mainland and the Association of Southeast Asian Nations, which jumped 14.6 percent and 27.1 percent in volume terms, respectively.

Moreover, Chan noted, the continued rise in fixed investment and local consumption has provided a solid underpinning for economic growth, reinforced by sustained capital inflows, a buoyant stock market and a stabilizing property sector.

The Hang Seng Index — the local stock market benchmark — has risen more than 30 percent so far this year. Average daily turnover in the first 10 months reached HK$258 billion ($33.17 billion) — nearly double that of last year’s full-year average. Over the same period, 81 new listings had raised around HK$216 billion — almost triple the amount a year earlier. This has placed Hong Kong as the world’s top initial public offering destination.

ALSO READ: Economist: HK seen as global growth epicenter

Hong Kong’s status as a financial hub continues to draw global wealth. Since 2022, more than 200 family offices have established or expanded operations in the city with the help of investment promotion agency InvestHK. By the end of last year, assets under management had exceeded HK$35 trillion, up 13 percent year-on-year. These strong factors have helped lift financial services exports by 11 percent this year, contributing over a tenth of GDP growth.

The property market has also turned the corner amid a strong local economy and US interest-rate cuts from September, Chan said.

Sales activities of non-residential properties have picked up from a year ago, and vacancy rates in major shopping districts have fallen since early this year although prices and rents have remained soft.

Riding high on Hong Kong’s recovery momentum, more companies have stepped up investment in offices, some buying multiple floors or entire buildings, and overseas financial institutions increasing their leases of Grade-A space.

READ MORE: HK to secure sustainable economic growth impetus

Tourism has rebounded steadily, with visitor arrivals in the first 10 months climbing 12 percent year-on-year to 41 million, benefiting the catering and retail sectors.

With the economy maintaining strong momentum and market sentiment improving, Chan said, the latest unemployment and underemployment figures to be released on Tuesday are expected to show continued stability.

 

irisli@chinadailyhk.com

SEOUL, November 16, 2025 – Hyundai Motor Group (the Group) announced today it will invest KRW 125.2 trillion in South Korea over the five-year period from 2026 to the end of 2030, representing the company’s largest-ever domestic investment commitment.

The investment plan significantly expands on the Group’s previous commitment, exceeding the KRW 89.1 trillion investment in Korea from 2021 to 2025 by KRW 36.1 trillion. The new five-year commitment marks an annual average investment of KRW 25.04 trillion over this future period, and a more than 40 percent increase from the annual average over the past five years of KRW 17.8 trillion.

This significant domestic investment strategy highlights the Group’s agility in actively responding to the rapidly changing global business environment, positioning the Group effectively for long-term growth. The plan aims to strengthen South Korea’s status as a global mobility innovation hub as well as stimulate broader economic growth by advancing the AI/Robotics industry and progressing the green energy ecosystem.

The KRW 125.2 trillion investment will be allocated across three key areas:

• •  KRW 50.5 trillion in future business investment across AI, Software Defined Vehicles (SDVs), electrification, robotics, and hydrogen
• •  KRW 38.5 trillion in research and development to develop new products and core technologies
• •  KRW 36.2 trillion in capital investment to optimize production facilities and construct the Group’s Global Business Center (GBC)

A significant portion of the investment will focus on new businesses based on advanced AI technologies, such as robotics, contributing to the development of Korea’s AI/Robotics innovation ecosystem.

The Group is also expected to play a key role in promoting balanced regional development through the establishment of EV-dedicated facilities and the upgrading of production lines at regional manufacturing facilities for new model launches, as well as the construction of a PEM electrolyzer plant in the southwestern region.

Through this mid-to long-term investment, Hyundai Motor Group will support Korea in further strengthening its position as a key global hub for mobility production. The Group plans to diversify export destinations for vehicles produced at domestic plants and significantly expand exports by developing Korea’s EV-dedicated facilities into global export bases.

The Group aims export 2.47 million units by 2030, up from 2.18 million units in 2024, and expand EV exports – including EVs, PHEVs, HEVs, and FCEVs – from 690,000 units to 1.76 million units over the same period.

Focused Investment in Korea’s AI/Robotics Industry and Green Energy Ecosystem

To drive a paradigm shift in the domestic industrial landscape, the Group’s investments will nurture the AI/Robotics industry. This will focus on building AI infrastructure and expanding advanced ecosystems, such as AI-powered robotics.

Hyundai Motor Group recently announced its strengthened collaboration with NVIDIA and is actively enhancing its AI capabilities across in-vehicle AI, autonomous driving, smart factories, and robotics.

To process the massive amount of data required for AI model training and operations, the Group is reviewing the establishment of a high-power AI data center. The data center is planned to feature petabyte-scale storage capacity for AI training data generated by physical AI robots and autonomous vehicles.

The Group is also pushing forward the establishment of the ‘Hyundai Motor Group Physical AI Application Center’, which will play a central role in advancing the physical AI ecosystem. This center will verify the completeness and safety of robots trained on large-scale behavioral data through AI and is expected to serve as an innovation testbed to ensure reliability before deployment in real-world industrial settings

Based on customer-tailored robotics technologies developed through physical AI, Hyundai Motor Group will build a robotics manufacturing and foundry facility. This will enable the Group to produce complete robotics systems in-house and offer foundry services for SMEs lacking manufacturing expertise.

In parallel, the Group will actively support R&D in robotics components by existing automotive parts suppliers. By accelerating the entry of automotive parts suppliers into the robotics sector, these suppliers are expected to contribute to the localization of core components and the export of high-value-added products, further accelerating Korea’s industrial transformation.

The Group is also planning investments in the development of water electrolyzers for green hydrogen production to enhance the green energy ecosystem.

Hyundai Motor Group plans to build a 1GW PEM electrolysis plant in the southwest, capitalizing on the readily available supply of renewable energy, along with nearby hydrogen shipment centers and refueling stations.

To accelerate Korea’s transition to a hydrogen economy, the Group will also establish facilities for manufacturing PEM electrolyzers and hydrogen fuel cell components, positioning these operations as a global export business.

Hyundai Motor Group also plans to actively consider investments – through consultation with the Korean government and local authorities – to establish a hydrogen AI Smart City that integrates the Group’s core technologies, including AI, hydrogen energy, and V2X.

Through expanded investment across various regions, Hyundai Motor Group aims to stimulate local economic growth and lay the foundation for the sustainable growth of Korea and its mobility industry.

Currently, Hyundai Motor Group operates vehicle and parts manufacturing plants in all key geographical regions across Korea. Over the next five years, the company will continue to invest in production line optimization to accommodate the launch of new vehicle models.

New plants are also under construction. Hyundai’s dedicated EV plant in Ulsan will be completed next year, and a new hydrogen fuel cell production facility is scheduled to begin operations in 2027. Kia has completed a new dedicated EV plant for PBVs in Hwaseong, Gyeonggi Province, and is preparing to commence operations.

Hyundai Steel Company is building an LNG power plant at its Dangjin steelworks, with KRW billions also being invested in blast furnace upgrades. Hyundai Engineering Co. Ltd. is expanding nationwide infrastructure, such as EV charging stations, to address underserved areas.

Investment Strategy and Timeline

Hyundai Motor Group’s investment plans by sector from 2026 to 2030 include: KRW 50.5 trillion in future business investment, KRW 38.5 trillion in R&D investments, and KRW 36.2 trillion in capital investments.

 

Future business investment will be allocated in key technological areas, such as AI-powered autonomous driving, AI-driven autonomous manufacturing, AI robotics, electrification and SDVs, and hydrogen energy to solidify the Group’s foundation for sustainable growth. Key areas of future business investment include:

• •  AI autonomous driving
  o AI-powered autonomous driving technology enables a vehicle to perceive its surroundings using sensor data and make real-time driving decisions independently through AI
  o The Group is developing this technology through its end-to-end deep learning model, Atria AI, and is actively collaborating with 42dot and Motional to bring this vision to life
  o In parallel, the Group is focusing on the development of AI-driven autonomous manufacturing by integrating AI with robotics and digital twin technologies
  o Enable AI to independently operate and optimize production processes
• •  Software Defined Vehicle Development
  o Recently announced ‘Pleos’ mobility software brand
  o Plans to unveil an SDV Pace Car in the second half of 2026, decoupling vehicle hardware and software
• •  Powertrain and Lineup Diversification
  o Continue to strengthen electrification capabilities
  o Introduce Extended Range Electrified Vehicles (EREVs) with over 900 km driving range
• •  Battery Technology Internalization
  o Strengthen investments to improve battery safety and marketability
  o Focus on internalizing design and development capabilities for various battery types
• •  Hydrogen Energy Business Expansion
  o Enhance the development of next-generation fuel cell systems, hydrogen buses, and trucks
  o Aim to solidify global leadership in hydrogen fuel cell vehicles
  o Build a hydrogen ecosystem as well as a full end-to-end hydrogen value chain spanning production, supply, storage, and utilization with various Hyundai Motor Group affiliates

 

R&D investment will focus on strengthening the Group’s competitiveness in the mobility industry and developing new products and core technologies to flexibly respond to global market conditions.

• •  Develop new products and core technologies
  o Focus on the development of hybrid engines for rear-wheel drive applications
  o Pursue regional strategic models and technology strategies to meet the needs and environments of key global markets

 

Capital investment will be directed to enhance production optimization in Korea, innovation in manufacturing technology, and the expansion of customer service hubs.

• •  Hyundai Motor Group’s Global Business Complex (GBC)
  o Construction will begin after completing the Seoul city permit process
  o GBC will be a global innovation hub as well as a landmark for Korea and will create significant economic impact during and after construction

Hyundai Motor Group expects the large-scale domestic investment to advance related industries, contribute to strengthening Korea’s position as a global mobility innovation hub, and further energize the national economy.