Kia Commits 3 Trillion Won to Gwangju EV and PBV Plant by 2029

Kia and Hyundai will pour three trillion won — roughly two billion euros — into the Autoland Gwangju plant in South Korea by 2029. The commitment sits inside a wider plan worth 125.2 trillion won, about 83.5 billion euros, for the South Korean location through 2030.

Kia's executive leadership signed the joint agreement alongside representatives of the Jeonnam-Gwangju region and the heads of Chonnam National University and the Gwangju Institute of Science and Technology. The deal obliges the partners to modernise and expand the Gwangju site by 2029.

What changes at Gwangju?

Autoland Gwangju already builds the Kia Seltos and the Kia EV5. Even so, production there has leaned heavily on internal combustion vehicles. The new money funds a factory building dedicated to electric vehicles, plus expansion of existing lines. The stated goal: build EVs and software-defined vehicles, or SDVs, at scale. SDVs rely on software control, digital connectivity and over-the-air updates as core architecture features.

A central pillar is electric Purpose-Built Vehicles — PBVs with modular interiors and structures. Kia's 'Easy-Swap' technology allows rapid body reconfiguration. One base vehicle can switch between freight and passenger duty as demand shifts. That claim remains a roadmap item for now; the swap cycle times and volumes went unmentioned in the announcement.

The real-world laboratory

Testing will not stay on the proving ground. Partners plan an on-site lab running flexible on-demand buses, autonomous shuttles, and remotely controlled Kia PV5 vehicles for mobility-impaired users. A fleet of 200 autonomous Hyundai Ioniq 5 vehicles will operate in regular urban traffic to collect real-time data and train AI control systems.

The partnership also covers joint climate protection measures and expanded renewable energy. No targets, timelines or capacity figures accompany that pledge — worth pressing Kia on before treating it as more than intent.

What the company said

President Song Ho-sung framed the agreement in expansive terms. He said: "This agreement will serve as an opportunity to accelerate the development and commercialisation of PBV-based future mobility technologies. Kia will contribute to Jeonnam-Gwangju Integrated Special City's emergence as a leading hub for the future mobility industry in South Korea by building a production system for future vehicles and expanding its PBV business."

What to watch

Three checkpoints matter. First, the 2029 completion date for the new EV factory building — the hardest deadline in the agreement. Second, the rollout of the 200-vehicle Ioniq 5 autonomous fleet into live urban traffic. Third, the first serial application of Easy-Swap on the PV5 line, which will show whether the PBV pitch translates into production reality rather than concept-stage promise.