What We Learned from Hyundai’s Venture Capital Team in Seoul: Innovation, Agility, and a Korea-First Mindset

As part of nexxworks’ Hallyu Korea Tour, we had the chance to sit down with Hyundai’s venture capital (VC) team in Seoul. This session provided incredible insights into how Hyundai—a corporate giant with over 50 affiliate companies across industries—approaches innovation and strategic growth in a unique way that reflects both the company’s size and Korean cultural values.

Hyundai: An Agile Giant in Korea’s Conglomerate Ecosystem

Founded in 1947, Hyundai started as a construction company and has grown into a conglomerate spanning industries such as automotive, finance, mobility, and nuclear energy. This diverse portfolio generates billions annually; Hyundai Motor Company alone reported revenues of around $108 billion in 2022, making it one of the world’s top automakers by sales volume. Hyundai’s structure as a conglomerate, or chaebol, is common among South Korea’s largest corporations, where family-owned businesses dominate the economy. The Chung family leads Hyundai, with a single chairman driving major decisions. This centralized control allows Hyundai to pivot quickly, scale, and maintain cohesion across its many businesses.

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A Focus on Open Innovation and Technology Investment

Hyundai’s commitment to open innovation is noteworthy. Over 150 people work within the Hyundai Motor Group’s Open Innovation division, which aims to invest in tech that complements Hyundai’s core sectors. With 85% ownership of robotics company Boston Dynamics, Hyundai plans to drive revenue in warehousing and logistics through robotics. The company’s venture arm has allocated $2 billion since 2017 to fund over 130 companies, mainly in Korea but increasingly overseas. Hyundai’s ZeroOne fund, currently raising its third round, focuses on early-stage investments, with a mission to support high-potential startups in areas like AI, mobility, and energy tech. The fund’s scope spans domestic offices in Seoul and global outposts in Berlin, Singapore, Beijing, and Tel Aviv.

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The Balancing Act of Going Global with a Local Focus

Hyundai has managed to build an impressive ecosystem within South Korea, where the conglomerate culture creates a tight-knit, high-demand environment. However, like many Korean companies, Hyundai faces challenges when expanding internationally. Their "Korea-first" approach, essential for thriving domestically, can be limiting in the global market. Now, Hyundai is looking to diversify by launching a new $100-200 million fund focused solely on international opportunities, aiming to invest in European university spin-offs and other global tech ventures. This step marks a cultural shift as Hyundai learns to balance local strength with international ambition.

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Hyundai’s Role in South Korea’s Economic Ecosystem

South Korea is the world’s 10th largest economy, with conglomerates like Hyundai, Samsung, and LG playing a pivotal role in GDP, which reached over $1.7 trillion in 2023. Hyundai’s growth, coupled with a strong venture arm, reflects broader trends in the Korean economy, where corporate-driven innovation continues to shape the tech and mobility sectors both locally and globally.Our time with Hyundai’s VC team underscored not just how innovative the company is, but how deeply embedded it is in South Korea’s economic fabric, balancing local dominance with a new push toward global expansion.

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Eager to learn, connect, and innovate like we did in Korea? Join one of our upcoming tours!