Kia plans to invest 3 trillion won ($2.2 billion) in Gwangju, South Korea, through 2029 to expand its electric vehicle manufacturing operations and develop a regional ecosystem for purpose-built electric vehicles (PBVs).
The investment will transform the automaker’s AutoLand Gwangju facility into a strategic production base for electric vehicles and software-defined mobility solutions, expanding its manufacturing activities beyond internal combustion engine models.
The funding forms part of Hyundai Motor Group’s broader commitment, announced in November 2025, to invest 125.2 trillion won in domestic operations over five years.
Kia Partners With Local Institutions on Electric Mobility
Alongside the investment announcement, Kia signed a memorandum of understanding with Jeonnam-Gwangju Special Metropolitan City, Chonnam National University and the Gwangju Institute of Science and Technology (GIST).
The agreement covers the development and testing of electric PBVs for demand-responsive transport services, autonomous shuttle operations and flexible passenger and cargo transportation.
The partners will also demonstrate remote-driving technology using Kia’s wheelchair-accessible PV5 electric vehicle and test the company’s Easy Swap system, which allows vehicles to switch between passenger and cargo configurations.
Kia president and CEO Song Ho-sung, Gwangju Mayor Min Hyung-bae, Chonnam National University President Lee Keun-bae and GIST President Lim Ki-chul attended the signing ceremony at AutoLand Gwangju.
200 Autonomous Electric Vehicles Planned for Testing
The cooperation includes plans to deploy a fleet of 200 autonomous Hyundai Ioniq 5 electric vehicles across residential, commercial and urban roads in the region.
The vehicles will support mobility service demonstrations and provide operational data to help develop and train artificial intelligence systems for autonomous electric PBVs.
Testing will cover demand-responsive transportation, autonomous shuttle services and remote-driving applications designed to improve mobility access for passengers with disabilities.
Kia expects the initiative to accelerate the commercialisation of electric PBV technologies and create opportunities for new mobility services and related businesses.
Gwangju to Strengthen Kia’s EV Manufacturing Network
The 3 trillion won investment will support the expansion of AutoLand Gwangju as Kia increases its focus on electric vehicle production and software-defined vehicle technologies.
The project is part of Hyundai Motor Group’s wider domestic investment programme, which aims to strengthen South Korea’s automotive manufacturing and advanced mobility industries.
By combining EV production investment with autonomous vehicle testing and partnerships with local universities, Kia aims to connect electric vehicle manufacturing with the development of next-generation transport services.
The company expects the collaboration to position the Jeonnam-Gwangju region as a centre for electric mobility and PBV development in South Korea.