Hyundai Motor announces major investment

SEOUL: South Korea's top carmaker Hyundai Motor announced Friday it would invest more than $11 bn next year to raise production and upgrade facilities.

Chairman Chung Mong-Koo said the world's sixth largest auto group would invest 11 trillion won ($11.7 bn ) in 2008 compared to an estimated seven trillion won this year.

He disclosed the plan before attending a meeting between president-elect Lee Myung-Bak and business leaders.

Hyundai Motor and affiliate Kia Motors will spend a combined 4.5 trillion won, including 3.5 trillion won for research and development. About 5.2 trillion won would be spent on an integrated steel plant, Chung said.

Hyundai started building the plant, with an annual capacity of seven million tonnes, in October last year to avoid shortages of the key raw material.

The group, which controls more than 70 percent of the domestic auto market, aims to become number five in the world. But growth has been threatened by competition, falling productivity and labour disputes.