Hyundai Motor and KT plan to form and operate a committee to promote future new projects and advanced research
Korean car maker Hyundai Motor Group said it will expand its strategic partnership with compatriot telecom operator KT Corporation (KT) to further collaborate in the future mobility market.
In a release, Hyundai Motor Group announced that it will push for extensive cooperation in next-generation communication infrastructure and ICT, including joint research with KT on 6G autonomous driving technology and Advanced Air Mobility (AAM) communication network based on satellite communication.
In addition to joint advanced research on future technologies, the two parties will also diversify their business partnership areas in 5G communication network-based, customized connected car services and security communication module technology collaboration by exchanging existing core competency of respective party.
Hyundai Motor Group and KT agreed to focus on advancing vehicle technologies in the field of connectivity area, which is the basis for realizing MECA (Mobility Service, Electrification, Connectivity, Autonomous).
The parties noted that connectivity is a key element of MECA, which enables smooth technology operation only when a stable high-quality communication network is supported. To this end, the global automobile industry is competing to secure related technologies through partnerships with telecom operators.
The two parties agreed to acquire mutual shares through treasury stock exchange in order to create synergy in future businesses, enhance the execution and sustainability of mutual cooperation, and strengthen long-term partnerships.
Under the share swap deals, KT will exchange its own 7.7% stake worth about KRW 750 billion ($541 million) with a 1.04% stake in Hyundai Motor Co. and a 1.46% stake in Hyundai Mobis Co..
In addition, Hyundai Motor and KT plan to form and operate a tentatively named Business Cooperation Committee to promote future new projects and advanced research that require continuous cooperation as well as exchange of core capabilities from a mid- to long-term perspective.
Hyundai Motor Group said it will cooperate with KT to secure future autonomous driving technologies in preparation for the era of self-driving vehicles. The group plans to jointly develop 6G communication standards optimized for self-driving cars to preoccupy next-generation ultra-gap technologies.
“Advanced communication network is critical in autonomous vehicles as smooth and seamless data processes are required due to the increased connectivity of vehicles. Hyundai Motor Group and KT are planning to develop next-generation 6G communication-based autonomous driving technology that can process large amounts of data at a faster pace through demonstration projects and advanced joint research works,” Hyundai Motor said. “The data transmission speed of 6G is up to 50 times faster than that of 5G. It is expected that it will greatly contribute to enhancing the technical stability of various future mobility, including fully autonomous vehicles and AAM that need to process super-large amounts of data more quickly, such as real-time information collection within seconds.”