(Corrects research and development plan to 38.5 trillion won in paragraph 6, not 48.4 trillion)

SEOUL (Reuters) -Hyundai Motor Group will invest 125.2 trillion won ($86.47 billion) in South Korea from 2026 to 2030, the automaker said on Sunday after Seoul finalised a trade deal reducing U.S. tariffs on South Korean autos to 15% from 25%.

That compares with investments by Hyundai Motor ( HYMLF ) and its group affiliate Kia Corp ( KIMTF ) of 89.1 trillion won from 2021 to 2025, according to the group.

South Korean President Lee Jae Myung met with Hyundai Motor Group Chairman Euisun Chung and other business leaders on Sunday, two days after details were released on the trade deal, which includes South Korea's promise to invest $350 billion in U.S. strategic sectors.

"We are well aware of concerns about exports declining and domestic production shrinking due to U.S. tariffs of 15%," Chung said after the meeting.

"We will diversify export markets, increase exports from domestic factories and more than double auto exports through new electric-vehicle factoies by 2030," Chung said, adding that the group will also provide support to auto parts makers hit by President Donald Trump's tariffs.

Of Hyundai's domestic investments, 50.5 trillion won ($35 billion) will be in AI and other future business opportunities, 38.5 trillion won in research and development, and 36.2 trillion won on optimising production facilities and building a skyscraper, the group said.

($1 = 1,447.9300 won)