ETFs (exchange-traded funds) focusing on investing in Hyundai Motor, a physical AI (artificial intelligence) company, are being launched one after another. This is driven by expectations that Hyundai Motor will be revalued as it transforms into a leading physical AI company. With Hyundai Motor's stock price falling more than 40% over the past three months, attention is focused on whether Hyundai Motor can regain its momentum.
On the 21st, Samsung Asset Management held a webinar and announced that it will launch the 'TIGER Hyundai Motor LG Electronics Fixed Physical AI Value Chain' ETF on the 22nd. This ETF is characterized by allocating 25% each to Hyundai Motor and LG Electronics, totaling 50%. The remaining 50% of the portfolio includes companies with actual supply relationships with these two firms, as well as related value chain companies such as robots, components, sensors, AI (artificial intelligence), and software. This ETF also includes U.S.-listed companies in its investment scope, not just domestic ones.
Jeong Ui-hyun, head of the ETF management division at Samsung Asset Management, stated, "The bottleneck in the physical AI era will occur in the 'body' sector that actually produces things." He added, "In other words, the ability to build robots is crucial, and Hyundai Motor and LG Electronics are the two pillars in South Korea possessing this capability."
ETFs focusing on investing in Hyundai Motor have been increasing since the beginning of this year. According to the Korea Exchange, there are seven ETFs launched this year that fix Hyundai Motor's weight at 25%, including 'TIGER Hyundai Motor LG Electronics Fixed Physical AI Value Chain.'
Starting with 'RISE Hyundai Motor Fixed Physical AI' in May, the following were listed: △'WON Samsung Electronics-Hyundai Motor Bond Mix 50' △'1Q Hyundai Motor-Kia Bond Mix 50' △'KODEX Hyundai Motor Robotics Value Chain TOP3 Plus' △'KIWOOM Hyundai Motor Group TOP3 Bond Mix 50' △'WON Physical AI TOP2 Plus Active.'
The main investment theme of these ETFs is physical AI. Following Hyundai Motor Group's announcement of plans to commercialize humanoid robots at 'CES 2026' in January, Hyundai Motor was repositioned not as an automotive stock but as a leading physical AI company, prompting the creation of these ETFs.
The market believes there is a high probability that Hyundai Motor Group will succeed in penetrating the physical AI market. This is because it holds Boston Dynamics, the developer of the humanoid robot 'Atlas,' along with Hyundai Mobis and Hyundai Automech, which supply actuators. Additionally, the group can source all aspects of the humanoid-related value chain—including robot OEM (original equipment manufacturer), components, software, and on-site deployment—within its own structure.
The division head explained, "In the case of Hyundai Motor, the humanoid 'Yangsan' could begin as early as next year." He added, "Expectations and demand will surge from the moment Atlas is installed at Hyundai Motor's Georgia Meta Plant in the U.S." He further emphasized, "It is important to quickly recognize that this timing may arrive sooner than expected."
Experts believe that Hyundai Motor's recently stagnant stock price, along with those of its group companies, could rise due to physical AI momentum. As of the 18th, Hyundai Motor's stock price had fallen by 40.94% over the past three months. Hyundai Mobis and Kia also declined by 39.94% and 26.7%, respectively. This is due to concerns that worsening vehicle sales performance could result from a strong won and rising interest rates.
Kim Jun-seong, a researcher at Meritz Securities, stated, "While it is inevitable that the operating results of Hyundai Motor Group's core affiliates, which are based on vehicle manufacturing and sales businesses, will be damaged due to deteriorating macroeconomic conditions and intensifying mobility competition," he noted, "There are companies that can gain greater growth opportunities by participating in physical data pipelines and entering the robot component manufacturing sector. Hyundai Motor Group is the only company among those in the vehicle manufacturing and sales industry that holds a device supplier position for both mobility and control data." He further predicted, "Unlike the trend in vehicle manufacturing and sales performance, the valuation assigned to Hyundai Motor Group's physical AI competitiveness will likely move upward."
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