Samsung Electronics and several major South Korean companies have committed to significantly increasing their investment at home following a trade agreement with the United States. This pledge came during a meeting with President Lee Jae Myung, aimed at alleviating fears that firms might shift their focus to the U.S. after the deal.
The meeting came soon after Seoul finalised an agreement with Washington, which requires South Korean companies to commit about $350 billion in U.S. industries to avoid the steepest tariffs previously threatened by the Trump administration.
Samsung, a leading global semiconductor manufacturer, announced plans to invest 450 trillion won in expanding its domestic operations over five years. A key initiative is constructing a new production line at its Pyeongtaek plant, expected to be operational by 2028, to meet the rising global demand for memory chips driven by advancements in artificial intelligence technologies.
Beyond manufacturing, Samsung intends to establish AI data centres in South Jeolla Province and the city of Gumi. These facilities align with government programmes to reduce the economic disparity between the Seoul metropolitan area and other regions by promoting more balanced regional development.
Hyundai Motor, South Korea’s largest automobile manufacturer, revealed plans to invest 125 trillion won between 2026 and 2030. The focus is on bolstering research and development domestically, emphasising innovative sectors including AI, robotics, and autonomous vehicle technologies.
Other leading companies such as SK Group—another key player in semiconductors—along with shipbuilding firms Hanwha Ocean and HD Hyundai, committed to increasing their domestic investment. The shipbuilding industry is a particular focus, partly due to its significance in the U.S.-South Korea trade talks led by President Donald Trump.
President Lee commended the cooperation of business leaders in securing the trade deal but stressed the importance of maintaining robust domestic investment. The government is considering regulatory reforms to create a more favourable environment for local investment.
The detailed trade agreement released last Friday outlined South Korea’s promise to invest $150 billion in the U.S. shipbuilding sector, supporting American industrial capacity, alongside an additional $200 billion for other American industries. South Korea intends to cap its total annual investments at $20 billion to maintain financial stability.
In return, the United States agreed to reduce tariffs on South Korean vehicles and auto parts from 25% to 15%, while semiconductor tariffs will continue under conditions ensuring South Korea receives treatment “no less favourable” than other comparable competitors, securing a level playing field in this vital sector.