Hyundai Motor Group Launches ZER01NE Fund III to Accelerate Global Tech Innovation with Startups
Hyundai Motor Group has officially launched ZER01NE Fund III, a strategic investment fund worth KRW 125 billion (approximately USD 91 million), aimed at driving forward innovation in cutting-edge future technologies through early-stage startup investment. The announcement underscores Hyundai’s long-term commitment to discovering and nurturing startup ecosystems that align with its future-oriented goals in mobility, sustainability, and digital transformation.
The latest iteration of the ZER01NE Fund represents a significant increase—1.5 times larger than the previous Fund II, which totaled KRW 80.5 billion. This expansion reflects not only Hyundai’s confidence in the startup ecosystem but also the Group’s strategic push to accelerate the pace of innovation across its vast network of affiliates.
Broad Support from Hyundai Affiliates
ZER01NE Fund III is backed by ten major affiliates within the Hyundai Motor Group umbrella. These include Hyundai Motor Company, Kia Corporation, Hyundai Motor Securities, Hyundai GLOVIS, Hyundai WIA, Hyundai Rotem, Hyundai MOBIS, Hyundai AutoEver, Hyundai Capital, and Hyundai BNG STEEL. Each of these companies brings domain-specific insight and market access that startups can tap into, creating synergy between corporate innovation needs and startup agility.
By pooling resources and strategic direction from this diverse set of affiliates, the Group aims to identify and scale new technology ventures that can have a transformational impact on industries ranging from automotive manufacturing to logistics and digital services.
Focus Areas: AI, Robotics, Hydrogen, and More
ZER01NE Fund III will focus its global investment scope on startups aligned with the Group’s future business direction. The fund will specifically target innovative startups in:
- Artificial Intelligence (AI)
- Robotics
- Cybersecurity
- Hydrogen and clean energy technologies
These focus areas reflect the Group’s evolving interests beyond traditional automotive manufacturing and into future mobility, sustainability, and intelligent systems.
This targeted approach ensures that ZER01NE not only supports promising new technologies but also secures capabilities that can be rapidly integrated into Hyundai’s value chain—whether in the form of product innovations, manufacturing optimizations, or new digital service models.
Building on a Track Record of Innovation
ZER01NE Fund III builds on the solid foundation laid by its predecessors. The inaugural ZER01NE Fund I, launched with approximately KRW 10 billion, and Fund II, with KRW 80.5 billion, have together invested in over 105 startups globally. These investments have generated more than 200 collaboration cases within the Hyundai Motor Group, reinforcing the effectiveness of the fund’s open innovation model.
Some standout startups that emerged from Fund I include:
- Clobot: A robotics platform provider that enables cloud-based management of autonomous robots for logistics, healthcare, and security. Its rapid growth culminated in a public offering in 2024, driven by strong demand for its navigation and fleet management tools.
- MakinaRocks: Specializing in industrial AI, MakinaRocks offers machine learning platforms that help manufacturing clients optimize processes, predict failures, and increase operational efficiency. Its technology is already in use across multiple Hyundai production sites.
- POEN: A circular economy-focused firm, POEN remanufactures end-of-life EV battery packs into cost-effective, high-performance units. Its sustainable approach has attracted global partnerships with OEMs looking to reduce battery waste.
- Macaron Factory: Creator of “Mycle,” a mobile platform that digitizes vehicle maintenance. Mycle connects car owners with mechanics and service shops, providing transparent pricing, booking, and real-time service updates.
These investments illustrate Hyundai’s dual focus on both core automotive technologies and adjacent innovations that enhance user experience and support green initiatives.
Highlights from Fund II Portfolio
Fund II, which completed its investment phase in January 2025, supported startups with an emphasis on energy transition and advanced robotics. Key companies include:
- 60Hertz: An energy tech company that develops AI-powered tools to manage distributed renewable energy assets like solar, wind, and electric vehicles. Its software helps corporations meet their RE100 renewable energy goals.
- LD Carbon: This startup converts end-of-life tires into recovered carbon black and tire pyrolysis oil. By creating eco-certified raw materials, LD Carbon supports Hyundai’s effort to decarbonize its manufacturing processes.
- Terracle: A plastics recycling innovator, Terracle utilizes low-temperature depolymerization to infinitely recycle PET plastics. Its green chemical tech aligns with broader environmental sustainability goals.
- Holiday Robotics: Focused on developing humanoid robots with manipulation capabilities, Holiday Robotics combines large language models (LLMs), computer vision, and reinforcement learning to build robots for manufacturing and home use.
These companies exemplify push to engage with transformative technologies early—at the startup stage—so that they can help shape Hyundai’s internal innovation roadmap and external product offerings.
Strategic Value and Future Vision
With the launch of ZER01NE Fund III, Motor Group is reinforcing its global vision: to become not just an automaker, but a leading innovator in mobility, energy, and digital infrastructure. By cultivating relationships with promising startups and enabling deep collaborations, the Group is creating a two-way street of innovation. Startups gain access to industrial expertise, customer base, and global infrastructure, while gains early access to disruptive ideas and technologies that can redefine its competitive edge.
As the automotive industry continues to converge with software, renewable energy, and intelligent automation, early investment in future-focused startups is not just a growth strategy—it’s a survival imperative.
ZER01NE Fund III is more than just capital. It’s a statement of intent from Motor Group: to lead the next wave of industrial transformation by championing innovation at its roots.
