Hyundai Motor Group has officially launched the ZER01NE Fund III, a strategic investment initiative valued at KRW 125 billion, aimed at fostering innovation in future technologies through early-stage startup investments. This new fund significantly expands upon its predecessors, targeting global startups in key strategic areas.
Key Takeaways
- Fund Size: ZER01NE Fund III is valued at KRW 125 billion, a 1.5-fold increase from Fund II.
- Focus Areas: The fund will invest in startups specializing in AI, robotics, cybersecurity, hydrogen, and energy technologies.
- Collaborative Support: Backed by ten affiliates of Hyundai Motor Group, enhancing startup collaborations.
- Previous Success: The first two funds collectively invested in over 105 startups, leading to more than 200 collaboration cases.
Overview of ZER01NE Fund III
The ZER01NE Fund III is designed to accelerate innovation by investing in early-stage startups that align with Hyundai’s evolving business strategies. The fund is supported by ten affiliates, including Hyundai Motor Company and Kia Corporation, which will help expand collaborative efforts with innovative startups.
Kyuseung Keith Noh, Vice President and Head of ZER01NE Group, emphasized the fund’s role in reinforcing Hyundai’s position as a strategic investor in transformative technologies. He stated, "By deepening collaboration with innovative startups, we aim to generate meaningful synergies across our affiliates and accelerate our future-ready business initiatives."
Investment Focus Areas
The fund will primarily target startups that operate in the following strategic areas:
- Artificial Intelligence (AI): Innovations that enhance automation and data processing.
- Robotics: Development of advanced robotic systems for various industries.
- Cybersecurity: Solutions that protect digital assets and infrastructure.
- Hydrogen Technologies: Innovations that promote hydrogen as a clean energy source.
- Energy Technologies: Solutions that improve energy efficiency and sustainability.
Success of Previous Funds
The ZER01NE Fund I and II have laid a strong foundation for the new fund, with notable investments leading to significant collaborations:
- Fund I: Approximately KRW 10 billion invested, resulting in successful startups like Clobot, which provides cloud-based robot management platforms, and MakinaRocks, specializing in industrial AI solutions.
- Fund II: Valued at KRW 80.5 billion, it concluded in January 2025, with key companies such as 60Hertz, which optimizes renewable energy assets, and LD Carbon, which recycles end-of-life tires.
Future Implications
With the launch of ZER01NE Fund III, Hyundai Motor Group is poised to continue its commitment to shaping the future of mobility and sustainability. By investing in pioneering startups, the Group aims to enhance its long-term growth and adapt to the rapidly changing technological landscape.
The ZER01NE Fund III not only represents a significant financial commitment but also underscores Hyundai’s strategic vision to lead in innovation and sustainability in the automotive and technology sectors. As the fund begins its investment journey, it is expected to play a crucial role in driving forward-thinking solutions that align with global trends and consumer needs.
Sources
- Hyundai Motor Group Opens ZER01NE Fund III to Drive Future Technology Innovation with Startups, TheNewsMarket.
