UPDATE 1-Microsoft, Hyundai partner for in-car technology

(Adds investment value, Bill Gates' meeting with South Korean president)

SEOUL, May 6 (Reuters) - Microsoft Corp (MSFT.O: Quote, Profile, Research, Stock Buzz) and South Korea's top carmaker Hyundai Motor Co (005380.KS: Quote, Profile, Research, Stock Buzz) have agreed to build a music and information system to debut in cars sold in North America in 2010, the companies said on Tuesday.

The companies did not reveal financial terms but South Korea's presidential Blue House said Microsoft and Hyundai Motor Group will invest $113 million and $166 million, respectively, in the "Automotive IT Innovation Center" they will set up jointly.

Microsoft Chairman Bill Gates is visiting Seoul to sign the agreement with Hyundai. Gates also met South Korean President Lee Myung-bak on Tuesday to discuss cooperation with South Korean companies.

The first product under the partnership would be a voice-controlled system linking mobile devices to car stereo systems.

Later versions are expected to include multimedia and navigation-related features, the companies said.

The deal will add a new competitor to Ford Motor Co's (F.N: Quote, Profile, Research, Stock Buzz) Sync system, which allows a driver to use voice commands to control a system linking the car's audio system with a mobile phone and the iPod from Apple Inc (AAPL.O: Quote, Profile, Research, Stock Buzz).

In a twist that promises to make the car-based system similar to the desktop computer market, the Hyundai data and entertainment device will be able to take on new features with software updates, the companies said.

The product deal marks a win for Microsoft, which has been working to open up the driver's seat as a new market for its software beyond its dominance in the office and living room.