Kia to Invest 3 Trillion Won in Gwangju to Produce Future Vehicles by 2029
Key Facts
Kia plans to invest about 3 trillion won through 2029 in a plan centered on its AutoLand Gwangju plant to shift to producing future vehicles and develop a mobility ecosystem based on purpose-built vehicles. The company announced the plan under a memorandum of understanding signed in Gwangju with the city, Chonnam National University and the Gwangju Institute of Science and Technology. Kia said the investment will include establishing an advanced production system and expanding electrified vehicle production, alongside showcasing autonomous driving technologies. The plan links manufacturing with the development of a broader future mobility ecosystem, including cooperation on technologies and services based on these vehicles. Chief Executive Song Ho-sung said the agreement could advance the development of future mobility technologies and accelerate their commercialization, helping the region become a hub for the sector in South Korea.
The memorandum of understanding provides for Kia to work with local and academic partners to establish an industrial ecosystem for purpose-built vehicles. The partnership links production plans with efforts to develop the technologies and their commercial applications, according to the company. Areas of cooperation also include responding to the climate crisis and expanding the use of renewable energy. This environmental dimension gives the agreement a scope beyond plant upgrades, linking the development of the mobility industry with energy goals and climate response. Song said the agreement could serve as a starting point for advancing the development and commercialization of technologies related to these vehicles.
The Gwangju investment is part of a broader plan Kia announced at its Investor Day in April 2026, totaling 49 trillion won over 2026–2030. The company allocated 21 trillion won of the total to future businesses, reflecting the scale of the shift it is seeking beyond its traditional activities. Kia aims to raise electric vehicle sales to 1 million units annually by 2030 and targets annual sales of 232,000 purpose-built vehicles that year. The company plans to expand its electric vehicle lineup to 14 models. These goals place production of new vehicles and mobility ecosystem development within a multiyear investment drive.
Kia is distributing production of its purpose-built vehicles across different facilities and models, according to a schedule it published in April. The program includes the launch of the PV7 in 2027 and the PV9 in 2029, following the PV5 in 2025. The company designated its Evo Plant in Hwaseong as a dedicated production center for these vehicles. This is alongside the investment plan centered on AutoLand Gwangju, and does not mean the Gwangju plant will be dedicated exclusively to electric vehicles and software-defined vehicles. The announced plan for Gwangju calls for a shift to future vehicles and expanded electrified vehicle production, while the Hwaseong plant remains the production facility dedicated to the purpose-built vehicle program.
Kia is moving ahead as South Korean customs data showed strong export growth in October 2026, with exports reaching $115.3 billion, up 93.7% year on year. Imports rose 36.0% to $72.8 billion in the same month, producing a trade surplus of $42.5 billion. Cumulative exports through the end of October reached $930 billion, exceeding $900 billion for the first time. But a survey of factory activity pointed to a slowdown in the pace of expansion: the manufacturing Purchasing Managers’ Index fell to 51.3 in October from 53.9 in September, while remaining above the 50 mark separating growth from contraction for the 11th consecutive month. The index was at its lowest since February, while growth in output and new orders slowed.
Reuters reported that companies said slowing demand, shortages of raw materials and rising costs weighed on factory performance, while some cited weak demand for cars. Usamah Bhatti, an economist at S&P Global, said October’s data showed a sharp slowdown in growth in output and new orders, with output rising at its weakest pace since the start of the year. These indicators put Kia’s industrial plan against a backdrop of strong South Korean exports and fading manufacturing momentum, with weaker car demand among the factors cited by manufacturers. Looking ahead, the scheduled PV7 launch in 2027 and PV9 launch in 2029 remain on the announced timeline, alongside the Gwangju investment horizon through 2029. Kia’s strategy also targets annual sales of 1 million electric cars and 232,000 purpose-built vehicles by 2030.