
Hyundai Motor Group Metaplant America opens new era for Korean automaker in US
State-of-the-art factory beefs up local production capacity amid Trump's tariff barriers
ELLABELL, GEORGIA -- Hyundai Motor Group on Wednesday held the grand opening ceremony of Hyundai Motor Group Metaplant America, an $8 billion cutting-edge automotive manufacturing plant in Bryan County, Georgia, signifying the Korean auto giant's local expansion bid to countermeasure the second Trump administration's strict tariff polices.
'Our unwavering belief in this community and in strengthening the American auto sector is what inspired Hyundai's plans for Metaplant from the start,' said Hyundai Motor Group Executive Chair Chung Euisun during the event held at the 11.76 million-square-meter site in Ellabell.
'In 2019, it was also what inspired our biggest investment ever in the United States: $20 billion. Two days ago, it was my great honor to go to the White House and, right alongside President Trump and his team, announce a new and even bigger investment: a historic $21 billion to support and expand our operations, here in Georgia and in other parts of this country.'
Hyundai Motor highlighted that HMGMA is a software-defined factory that embodies the innovation of manufacturing through autonomous technologies, artificial intelligence, data analytics and robotics.
HMGMA began rolling out the Ioniq 5, Hyundai Motor's electric sport utility vehicle, in October last year, about two years after the groundbreaking ceremony took place in October 2022. It proceeded to start producing the Ioniq 9, Hyundai's flagship three-row electric SUV, in March this year.
According to Hyundai, HMGMA plans to expand its production lineup to models of its sister affiliate Kia next year and its premium brand Genesis later on. The Korean automaker's newest plant will also manufacture hybrid vehicles to cope with the EV transition period. The Korean automaker plans to increase the annual production capacity of HMGMA to 500,000 units from the current 300,000 units.
Song Ho-sung, CEO of Hyundai's sister affiliate Kia, told reporters that its vehicles will eventually take up 40 percent of the total production at HMGMA with the first model slated to be in the assembly line about half way into next year without disclosing which vehicle will be the first to be rolled out there.
Hyundai Motor Group Vice Chair Chang Jae-hoon said HMGMA has set up the assembly lines so that it can produce up to eight different models at the same time, adding that Hyundai Motor and Kia aim to increase its current market share of about 11 percent to expand their presence in the US.
Hyundai, Kia and the former's premium brand Genesis combined for record-setting 1.71 million vehicles sold in the US last year. On the back of the additional production capacity in America, Chang explained that the auto conglomerate plans to ramp up the proportion of its US production to approximately 44 percent from the current 36 percent.
Hyundai Motor Group's four other affiliates -- Hyundai Mobis, Hyundai Glovis, Hyundai Steel and Hyundai Transys -- have also set up their plants at HMGMA to establish a gigantic auto cluster in the southern part of the US.
Hyundai Mobis has built its largest overseas production facility capable of supplying battery systems and parts modules enough to be equipped on 300,000 cars per year.
Hyundai Glovis operates a consolidation center and vehicle processing center as the logistics unit of HMGMA, using drones and data analytics to predict demand for parts and check the inventory in real time.
Hyundai Steel runs a steel service center to supply high strength steel sheets and plates enough to assemble 200,000 cars per year with plans to double the supply capacity in the future.
Hyundai Transys has built a plant to supply vehicle seats and their frame enough to fill up 420,000 cars per year.
Hyundai Motor is also constructing a $4.3 billion EV battery cell plant at HMGMA through a joint venture with Korean battery maker LG Energy Solution. The battery plant with an annual capacity of 30 gigawatt-hour is expected to be completed next year, aiming to secure battery supply enough to power about 360,000 Ioniq 5s annually.
According to Hyundai, the estalishment of HMGMA has resulted in a total of 17 Korean partners either newly entering Georgia or expanding presence to secure new contracts and strengthen their global competitiveness.
Hyundai and Kia have been operating manufacturing plants in Alabama and Georgia since 2005 and 2010, respectively. The former is capable of producing up to 400,000 cars per year while the latter's annual production capacity stands at 350,000 units. With the addition of HMGMA, the Korean auto conglomerate has secured a yearly production capacity of 1 million vehicles in the US.
Hashtags

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles


Korea Herald
3 hours ago
- Korea Herald
K-beauty's US crown under tariff strain in 2 minutes
Korean beauty, born from local culture, is now soaring on a global scale. Its triumph is most vividly illustrated in the US, where it became the top cosmetics exporter in 2024, surpassing former leader France for the first time. Despite this meteoric rise, however, a question remains: How far can K-beauty go at this pivotal juncture, now clouded by looming tariffs? Success formula • Global K-content wave meets lab-developed innovation, popularized through e-commerce • Localized, high-quality products with clean formulations tailored for US consumers • Strong foothold on Amazon, with competitive pricing fueling demand • Viral marketing on TikTok and Instagram, opening new channels like TikTok Shop • Expansion into major US retailers: Sephora, Ulta Beauty, Walmart and Target Navigating US regulations • Compliance with the Modernization of Cosmetics Regulation Act rules for Food and Drug Administration registration, product listing and labeling • Dedicated compliance teams at beauty giants and major original design manufacturers • Successful product testing and certification for over-the-counter sunscreens Tariff headwinds • Delayed 25 percent tariff set for July 9 alongside existing 10 percent tariffs • Growing concerns over won-dollar exchange rate and its impact on import prices • Expansion of US-based production by companies such as Kolmar Korea and Cosmax • Increased US investments by Amorepacific and LG H&H, including LG's $130 million capital infusion and Amorepacific's US facility plan What's next? • Long-term strategy emphasizing technological leadership, product innovation • Shift in innovation focus to AI-powered devices and next-generation beauty technology
![[Yoo Choon-sik] President Lee should look beyond market cheers](/_next/image?url=https%3A%2F%2Fwimg.heraldcorp.com%2Fnews%2Fcms%2F2025%2F06%2F08%2Fnews-p.v1.20250608.c3de5fa082994a0b9703c29f42d6141a_T1.jpg&w=3840&q=100)
![[Yoo Choon-sik] President Lee should look beyond market cheers](/_next/image?url=https%3A%2F%2Fall-logos-bucket.s3.amazonaws.com%2Fkoreaherald.com.png&w=48&q=75)
Korea Herald
6 hours ago
- Korea Herald
[Yoo Choon-sik] President Lee should look beyond market cheers
The South Korean stock market soared on each of the first two trading days following President Lee Jae-myung's official inauguration after securing a decisive victory in the early election held on June 3, winning by a substantial margin over his opponents. The peaceful transition of power and the political clarity it brings have been met with visible enthusiasm. Undoubtedly, Lee and his party, together with the people of South Korea, have every reason to relish the celebratory honeymoon phase of their administration. The stock market's benchmark Kospi posted a remarkable combined gain of 4.2 percent over those two days to end at 2,812.05 points on Friday, representing the highest closing level in nearly a year since July 18 last year. During the same period, foreign investors made net purchases totaling 2.07 trillion won ($1.52 billion) on the main board, marking the most net inflow from overseas investors in a year. This sharp uptick in buying activity reflected renewed confidence in the Korean market under the new leadership. The rise in stock prices is widely interpreted as a reflection of relief across the investor community, stemming from the peaceful resolution of the monthslong political impasse, triggered by the former president's controversial declaration of martial law last December. With stability now restored, there is cautious hope that Lee's administration will introduce pragmatic, market-friendly reforms. Contributing to the rally are also favorable external factors: a persistent weakening of the US dollar against major global currencies and the announcement that the US and China intend to resume trade negotiations —developments that typically benefit emerging markets like South Korea. Historically, traditional markets served as informal forums where policymakers could gather sentiment from the people, as citizens exchanged views and insights while trading goods. In our current era, financial markets serve a parallel — yet far more complex and consequential — role. They function as barometers of public and investor sentiment, allowing market participants around the globe to continuously evaluate a nation's economic performance, policy direction and future outlook. From that perspective, the recent rally in the stock market, alongside the strengthening of the Korean won, can be read as a strong initial endorsement of the promises and rhetoric offered by President Lee during the campaign. His campaign period, however, was notably brief, offering limited time for his team to flesh out fully detailed policy plans. Nonetheless, the messaging struck a chord, especially among investors and market observers eager for reform and modernization. One of Lee's key campaign priorities is addressing the "Korea Discount" — a persistent and well-documented phenomenon that refers to the comparatively low valuation of Korean-listed companies relative to their international peers. It is largely attributed to weaknesses in corporate governance, low shareholder returns and systemic inefficiencies in South Korea's regulatory and economic framework. To address this issue, Lee has pledged to revise Article 382-3 of the Commercial Act. The proposed amendment would obligate directors of listed companies to act not just in good faith but specifically in the interest of both the company and all its shareholders. The current version of the act requires directors to act for the benefit of the company, but lacks explicit emphasis on shareholder interests. Lee has also vowed to introduce the cumulative voting system. Many view this as a powerful tool for enhancing minority shareholder rights, as it allows shareholders to pool votes to elect at least one representative to a board, in contrast to the traditional system of one vote per share per director. Deliberative policymaking In addition, he supports other measures aimed at prompting companies to return a greater portion of earnings to shareholders and limiting the negative effects of corporate spinoffs that often disadvantage minority investors. While these governance-focused reforms are grabbing headlines, Lee has also promised fiscal stimulus on a massive scale. Though not explicitly intended to push stock prices higher, a major supplementary budget is expected to provide a strong economic stimulus to offset faltering domestic demand. This comes at a time when South Korea, an export-driven economy, is grappling with declining overseas sales due mainly to the US government's imposition of steep tariffs on most of its trading partners. It is worth noting that the previous administration had already introduced a 13.8 trillion won supplementary budget back in May, aimed to assist those affected by weak consumer spending, fund recovery in wildfire-stricken regions and support the development of national artificial intelligence infrastructure. The new extra budget being considered under Lee's administration is reportedly about three times the size of the previous one, signaling a bold fiscal approach. Taken together, these initiatives have offered a strong psychological boost to the stock market. They enhance the growth outlook for shares in a wide range of South Korean companies, many of which have long underperformed relative to their counterparts in other advanced economies. The anticipation of pro-growth reforms, combined with short-term liquidity injections, has widened the upside potential for equities. Yet, such optimism must be tempered with realism. The market lift resulting from policy announcements and fiscal measures may not be sustainable unless underpinned by genuine improvements in economic fundamentals. Corporate earnings, gross domestic product growth and export competitiveness — particularly in light of evolving global trade dynamics and tariff uncertainties — remain the true drivers of long-term performance. Furthermore, the risk of unintended consequences looms large. Even the best-intentioned policy can yield adverse results. Business leaders and major corporations have already voiced concerns that overly aggressive changes to the Commercial Act might deter boards from making bold, strategic investments, out of fear of legal entanglements or shareholder activism. Similarly, the large supplementary budget, if not crafted with precision and expertise, risks missing its mark. Without broad consultation and careful planning, the spending could end up inefficiently allocated, raising government debt while failing to generate meaningful economic uplift. That would not only disappoint voters but also strain public finances further. These concerns are especially pertinent in today's political landscape, where the Democratic Party of Korea holds a commanding majority across both the executive and legislative branches. This political dominance could enable the administration to push forward its agenda swiftly, but also tempt it to bypass the kind of open, deliberative policymaking that democracy requires. President Lee must remain aware that while voters handed him a clear mandate, they did not grant him unchecked authority. The people expect reform, yes — but they also expect balance, consultation and accountability. As the proposed revision of the Commercial Act implicitly acknowledges, those in power have a duty to act not just in their party's interest, but in the collective interest of the entire nation. Yoo Choon-sik worked for nearly 30 years at Reuters, including as the chief Korea economics correspondent, and briefly worked as a business strategy consultant. The views expressed here are the writer's own. — Ed.
![[Kishore Mahbubani] Trump vs. a United ASEAN](/_next/image?url=https%3A%2F%2Fwimg.heraldcorp.com%2Fnews%2Fcms%2F2025%2F06%2F08%2Fnews-p.v1.20250608.f1f8fb0be2f54df48a25a8bd40c9d7d7_T1.jpg&w=3840&q=100)
![[Kishore Mahbubani] Trump vs. a United ASEAN](/_next/image?url=https%3A%2F%2Fall-logos-bucket.s3.amazonaws.com%2Fkoreaherald.com.png&w=48&q=75)
Korea Herald
6 hours ago
- Korea Herald
[Kishore Mahbubani] Trump vs. a United ASEAN
US President Donald Trump's tariffs -- especially the ultra-high 'reciprocal" tariffs that he says will be reintroduced on July 9 for any country that has not struck a trade deal with his administration -- have sent countries around the world scrambling to respond, adapt, and limit the fallout. ASEAN's ten members -- Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam -- have been among the most proactive. Their leaders quickly recognized that, after decades of spectacular gross domestic product growth, ASEAN is an economic force that the Trump administration would have to reckon with in a serious way. In 2000, Japan was the world's second-largest economy by GDP, some eight times larger than ASEAN; today, it is only 1.1 times larger, and by 2030, ASEAN's economy will overtake it. In 2010-20, ASEAN contributed more to global economic growth than the European Union did. ASEAN owes much of this progress to open trade. Between 2003 and 2023, its trade with the rest of the world exploded, from $618 billion to $2.8 trillion. ASEAN's leaders have upheld relative peace and stability in their countries, while cultivating a culture of consultation and consensus in guiding regional relations. This stands in stark contrast to the experiences of many other developing countries and regions. Just a few weeks ago, neighboring India and Pakistan narrowly avoided full-scale war. The Middle East remains gripped by instability and violence, with Israel winning wars and losing the peace. The leaders of Latin America's two largest economies, Brazil and Argentina, are barely on speaking terms. After 48 years of regular ASEAN meetings -- with over 1,000 ministerial and lower-level meetings taking place annually -- constructive engagement is a deeply ingrained habit in the region. To be sure, ASEAN is often accused of lowest-common-denominator cooperation. But without such a measured approach, one guided by pragmatism, consensus-building, and compromise, ASEAN's member countries would not have managed to remain united through multiple shocks, including the Asian financial crisis of 1997-98 and the global financial crisis a decade later. ASEAN is now bringing these strengths to bear in its response to Trump's tariffs. To be sure, the individualized nature of the tariffs -- which vary widely within ASEAN, from 49 percent on Cambodia to 10 percent on Singapore -- limits countries' prospects for true collective bargaining. But ASEAN's member states are well aware that they are stronger together. That is why, at the just-concluded ASEAN summit in Kuala Lumpur, Malaysia, hosted by Anwar Ibrahim, the group proposed a summit attended by Trump and ASEAN's ten national leaders. This builds on ASEAN's April declaration that it would develop 'an enhanced, robust, and forward-looking ASEAN-US economic cooperation framework,' which strengthens 'constructive engagement' and drives 'innovative initiatives' to deliver a 'mutually beneficial economic relationship,' with 'particular focus on high-value sectors.' The statement reflects ASEAN's awareness of its value to the US, which runs a significant trade surplus in services with the region. It is no coincidence that the US invests heavily there -- nearly $500 million in 2023. ASEAN's value is set only to grow, owing not least to its efforts to deepen its ties with other regional organizations and economic powers. Its just-concluded summit with China and the Gulf Cooperation Council -- the first of its kind -- sent a clear message: ASEAN is not pinning its future on its relationship with the US, but it is not turning its back on open trade. ASEAN also seeks to boost internal resilience by strengthening trade among its member countries. While intra-ASEAN trade has been declining as a share of total trade, from 25 percent in 2003 to 21.5 percent in 2023, this is only because trade with the rest of the world grew so rapidly. In any case, the group is now seeking to dismantle non-tariff barriers -- more than 99 percent of goods already flow through ASEAN tariff-free -- and exploring other measures to boost trade within the bloc. The US economy is formidable, and Trump's tariffs may well undermine ASEAN's growth in the short term. But, by spurring the ASEAN countries to deepen cooperation with one another and with others, US tariffs could bring about an even more prosperous -- and, crucially, resilient -- grouping. This is especially likely if ASEAN makes the most of existing arrangements -- for example, the Regional Comprehensive Economic Partnership and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, which could seek to negotiate a new partnership with the EU. Fortunately, ASEAN has the kinds of leaders who can spearhead such an effort, beginning with the bloc's current leader, Malaysian Prime Minister Anwar Ibrahim. Kishore Mahbubani is a distinguished fellow at the Asia Research Institute of the National University of Singapore. The views expressed here are the writer's own. -- Ed.