Trump’s Tariffs Boost South Korean Firms to Increase U.S. Investments

South Korea’s largest companies announced major new domestic investments after President Yoon Suk-yeol met with top business leaders to discuss the country’s new trade agreement with the United States. The deal, finalized days earlier, committed Seoul to $351 billion USD in U.S. investments while securing lower American tariffs and clearer semiconductor rules.

According to BGNES and Euronews, Samsung Electronics said it will invest $340 billion USD over five years to expand its operations in South Korea. The company plans to build a new production line at its Pyeongtaek semiconductor campus, with operations set to start in 2028, to meet rising global chip demand fueled by artificial intelligence technologies. Samsung also plans to build AI data centers in South Jeolla and Gumi as part of national efforts to widen economic development beyond Seoul.

Hyundai Motor Group said it will invest $85.6 billion USD between 2026 and 2030 in domestic research and development, including robotics, AI, and autonomous vehicle technologies. Other major firms—including SK Group, Hanwha Ocean, and HD Hyundai—also announced expanded domestic spending tied to long-term chip, shipbuilding, and technology projects.

The announcements came as both governments released details of the U.S.–Korea tariff deal, including $150 billion USD earmarked for U.S. shipbuilding and $200 billion USD for other American industries. Seoul said annual investments will be capped at $20 billion USD to manage financial risk. In return, the U.S. agreed to cut car and auto-parts tariffs from 25% to 15% and confirmed that future semiconductor tariffs for South Korean producers will be “no less favorable” than those applied to global competitors.

During the meeting, Yoon thanked company leaders for supporting the trade negotiations and urged continued domestic investment to counter public concerns that firms might shift too much capital to the United States. He said the government is considering regulatory easing to improve business conditions.

SK Chairman Chey Tae-won, whose companies expect to invest at least $87.7 billion USD in South Korea by 2028, said the completed U.S. talks provide policy certainty and enable bolder long-term investment planning.

BY YEOL JANG [jang.yeol@koreadaily.com]