Korean asset managers are ramping up competition in robotics-themed exchange-traded funds (ETFs) centered on Hyundai Motor Group. Following an earlier race this year to launch semiconductor ETFs built around Samsung Electronics and SK hynix, fund houses are now rolling out products betting on Hyundai Motor Group's expansion into physical AI and humanoid robotics.
According to the Korea Exchange on the 21st, Hyundai Motor closed at 666,000 won, up 12.5% from the previous session. Other key Hyundai Motor Group affiliates also rallied, including Kia (12.38%), Hyundai AutoEver (12.72%) and Hyundai Mobis (25.23%). Analysts say the market is re-rating Hyundai Motor Group as a "physical AI platform" company spanning robotics, artificial intelligence (AI) and software, rather than a pure-play automaker.
ETF launches tied to Hyundai Motor Group are following suit. Samsung Asset Management plans to roll out the "KODEX Hyundai Motor Robotics Value Chain TOP3 Plus" next month. The fund concentrates on the group's integrated AI robotics ecosystem strategy and its in-house robot value chain, allocating up to 75% to Hyundai Motor, Kia and Hyundai Mobis, while also including key affiliates such as Hyundai AutoEver, Hyundai Glovis and Hyundai Wia.
KB Asset Management listed the "RISE Hyundai Motor Fixed Physical AI" ETF on the 12th of this month. The product permanently allocates 25% of its portfolio to Hyundai Motor, with the remaining 75% spread across 14 key Korean companies in autonomous driving, robotics and factory automation. It attracted more than 200 billion won within five trading days of listing. Other products launched this year include the "ACE K Humanoid Robot Industry TOP2+" and "HANARO K Humanoid Theme TOP10," which invest in names such as Hyundai Motor, Robotis and Rainbow Robotics.
Inflows into group-themed ETFs have also been notable. Mirae Asset Global Investments' "TIGER Hyundai Motor Group Plus" drew roughly 140 billion won over the past week. That stands out against the "TIGER LG Group Plus" (21 billion won), "KODEX Samsung Group" (2.3 billion won) and "PLUS Hanwha Group" (-9.2 billion won) over the same period.
The industry is focusing on Hyundai Motor Group's ability to leverage the massive manufacturing data accumulated through vehicle production to train robots. Combined with the data-gathering capabilities backed by Hyundai Motor and Kia's global production infrastructure, Hyundai Mobis's core component competitiveness and Hyundai AutoEver's software expertise, the group's vertical integration spanning manufacturing, logistics and software could translate into a competitive edge in robotics, analysts say.
Target prices for Hyundai Motor Group stocks are being raised one after another. Daishin Securities lifted its target price for Hyundai Motor to 770,000 won the previous day, attributing about 45 trillion won of the company's 157 trillion won target enterprise value to its robotics business. "By leading the group's physical AI business, Hyundai Motor will continue to serve as the sector's bellwether," said Kim Gwi-yeon, an analyst at Daishin Securities. Daol Investment & Securities raised its target price for Hyundai Mobis to 900,000 won the same day. "Hyundai Motor Group is building a physical AI ecosystem that encompasses manufacturing data, software and component supply chains, which could command a premium that differentiates it from traditional automakers," said Yu Ji-woong, an analyst at Daol Investment & Securities. "Once it enters mass production of humanoids, the scope for a re-rating of Hyundai Mobis could widen further."
