Attendees walk under a CES sign during CES 2024 at the Las Vegas Convention Center, Jan. 10. AFP-Yonhap

Fewer Korean tech firms are willing to expand their promotional spending for the Consumer Electronics Show (CES), opting instead to hold their own events without paying the enormous costs associated with participating in the world's largest tech fair early next year, industry officials said Monday.

Hyundai Motor Group has decided not to participate in CES 2025, citing the event as "unnecessary and redundant" for the second consecutive year. The automaker feels there is no need to rush the promotion of its new vehicle lineups by setting up a booth.

The global carmaker took part in this year's edition and shared its long-term growth strategy, focused on hydrogen and software-driven mobility. The vision remains unchanged and the company continues to join multiple global auto shows where it showcases its strategic models.

"The group may have made the decision under the judgment that it is unnecessary to participate in the fair, with its high marketing costs, as the auto industry is less sensitive to trends, compared to the IT and consumer devices makers," a tech industry official said.

The carmaker's enhanced global profile has also reduced its motivation to allocate a special budget for the tech exhibition. In 2023, the company rose to become one of the top three automakers worldwide by vehicle sales.

Hyundai Motor Group participated in the CES each year between 2009 and 2020 but skipped the 2021 edition due to the COVID-19 pandemic. It also decided not to promote its products in the 2023 edition.

HD Hyundai Executive Vice Chairman Chung Ki-sun delivers a keynote speech on the sidelines of this year's Consumer Electronics Show in Las Vegas, Jan. 10. Courtesy of HD Hyundai

Other heavy industry players also follow in the footsteps of Hyundai Motor Group by skipping next year's CES.

HD Hyundai showcased its latest construction equipment technologies at CES 2024 with a large booth in Las Vegas, but the company plans to skip the event next year, citing a similar rationale to Hyundai Motor Group.

Doosan Group showcased its technological capabilities at CES for the first time in 2020 and has since participated every other year. However, the company will not allocate funds for CES 2025, as it is currently prioritizing the completion of its ongoing corporate governance reform.

Another official from a tech firm here mentioned that an increasing number of the aforementioned and existing Korean companies are becoming less interested in CES, as their stronger global presence has made the event's promotional impact less significant.

"For instance, Hyundai Motor's global presence about a decade ago was much less influential than now," the official said.

"Most companies have to hype up their technological advancements when they are less known, but once they grow to reach a globally-influential level, they do not have to stick to promoting themselves at such global events as the CES."

Several top U.S. tech firms, including Apple, Nvidia and Tesla, have opted out of CES, choosing instead to host their own events. This trend reflects their market influence, showing they remain unaffected even if they don't attend major global tech fairs.