Kia to Invest 3 Trillion Won in Gwangju EV Facility
Kia transforms its Gwangju plant into a strategic hub for software-defined electric vehicles.
1Strategic Investment Announcement
Kia has officially announced a 3 trillion won, approximately 2.21 billion dollar, investment to construct a new electric vehicle production facility at AutoLand Gwangju. This project, scheduled to run through 2029, aims to transform the existing plant into a primary strategic base for future mobility solutions and advanced eco-friendly vehicle manufacturing.
2Broader Corporate Commitment
This capital injection is a significant component of the Hyundai Motor Group’s wider commitment, revealed in November 2025, to invest 125.2 trillion won into domestic operations over a five-year period. By expanding the Gwangju plant, Kia is shifting its focus away from traditional internal combustion engines toward software-defined vehicle production models.
3Integrated Mobility Ecosystem
Kia signed a memorandum of understanding with Jeonnam-Gwangju, Chonnam National University, and the Gwangju Institute of Science and Technology. This partnership aims to create an integrated mobility ecosystem, bringing together industrial expertise and academic research to foster innovation in vehicle design, autonomous systems, and flexible transport infrastructure for the region.
4Key Leadership Involvement
The signing ceremony featured prominent figures including Kia President and CEO Song Ho-sung and Gwangju Mayor Min Hyung-bae. Academic leaders, such as Chonnam National University President Lee Keun-bae and Gwangju Institute of Science and Technology President Lim Ki-chul, also participated, underscoring the collaborative effort to establish a flagship center for future mobility.
5Purpose-Built Vehicle Testing
The partnership focuses on testing Kia’s Purpose-Built Vehicles, known as PBVs, for diverse applications. These include demand-responsive transit systems, autonomous shuttles, and specialized designs for logistics. Furthermore, the initiative explores remote-driving systems for the Kia PV5 Van, specifically tailored to assist mobility-impaired passengers in navigating urban environments with greater ease and independence.
6Autonomous Fleet Deployment
To facilitate service trials and train artificial intelligence systems for these PBVs, the consortium will deploy a fleet of 200 autonomous Hyundai Ioniq 5 electric vehicles. These cars will operate across local residential, commercial, and urban roads, gathering essential data to refine autonomous navigation and improve the reliability of future transport services.
7Commercialization and Regional Goals
CEO Song Ho-sung stated that this partnership will accelerate the commercialization of PBV-based technologies. The initiative is designed to position the Jeonnam-Gwangju Integrated Special City as Korea’s flagship center for future mobility, leveraging local academic resources and industrial manufacturing capabilities to set a new standard for the nation's automotive technology sector.
8Future Industry Implications
By integrating software-defined vehicle capabilities with local infrastructure, Kia is positioning itself to lead in the evolving automotive landscape. The success of this Gwangju project could serve as a blueprint for future domestic investments, demonstrating how large-scale manufacturing can successfully pivot toward autonomous, AI-driven, and highly flexible transportation service models.
Original article: The Korea Herald – All — Kia to Invest 3 Trillion Won in Gwangju EV Facility