On November 16th, Korean conglomerates such as Samsung Electronics, Hyundai Motor Group, and other major manufacturers in South Korea announced their investment plans within the country. This comes following concerns that the US-Korea trade agreement could potentially weaken the domestic manufacturing industry in South Korea.
Samsung Electronics revealed their plan to meet the increasing global demand for artificial intelligence by adding a new chip production line at their factory in Pyeongtaek, South Korea. This move is part of Samsung Group’s plan to invest 450 trillion Korean won (approximately 3,107.9 billion US dollars) over the next five years in South Korea.
During the announcement, President of South Korea, Lee Jae Myung, met with leaders from the business community on Sunday. Previously, South Korea and the United States reached a trade agreement, with South Korea committing to invest 350 billion dollars in strategic sectors in the US. The agreement was finalized last Friday.
President Lee urged Korean companies to consider investing more within Korea during the meeting on Sunday. He also called for Korean companies to engage with the government to fully utilize the investment plan of 350 billion dollars for overseas investments.
Jay Y. Lee, the Chairman of Samsung Electronics, stated, “Samsung will increase domestic investments to create high-quality employment opportunities for the youth and further strive for a win-win situation with small and medium-sized enterprises and venture capital firms.”
Samsung Electronics mentioned in a statement that, “With the comprehensive arrival of the global artificial intelligence era, Samsung Electronics anticipates growth in demand for storage semiconductors in the medium to long term. To rapidly adapt to market changes, the company plans to proactively equip production lines.”
According to official US data and multiple media reports, investment activities of Korean companies in the US are rapidly expanding. For instance, Samsung Electronics has expanded its focus on chip manufacturing and research facilities in the US, with a total investment exceeding 40 billion US dollars, especially in its wafer plants in Taylor and Austin, Texas.
The company also received a grant of up to 6.4 billion dollars from the US government under the CHIPS Act, and its operations created approximately 19.8 billion dollars in economic benefits and around 38,500 job positions locally in 2024.
At the same time, based on press releases from Hyundai Motor Group and various media reports, their investment in the US has notably increased.
The group initially committed around 21 billion dollars from 2025 to 2028, which has now been raised to about 26 billion dollars, covering areas such as car production, localizing parts, electric vehicle charging stations, robots, and future technologies like low-carbon steel. They are expected to create over 100,000 direct and indirect job opportunities, with approximately 14,000 of them being permanent full-time positions.
During the meeting with President Lee Jae Myung, Hyundai Motor Group announced their plan to invest 125.2 trillion Korean won in South Korea from 2026 to 2030. Shipbuilding company Hanwha Ocean and HD Hyundai also unveiled their respective investment plans within South Korea.