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SAMSUNG Electronics and other major South Korean Companies announced new domestic investment plans in meeting with the President on Sunday lee jae myungJoe hopes the move will counter concerns that companies would prioritize U.S. investment under a trade deal.
Lee’s meeting with business leaders came days after his government finalized a trade deal with the United States soul Pledged to invest $350 billion in American industries in exchange for stopping the Trump administration’s highest tariffs.
Samsung, the global leader in computer chips, said it will invest 450 trillion won ($310 billion) over the next five years to expand its domestic operations, including building another production line at its Pyeongtaek manufacturing center to meet growing global semiconductor demands fueled by artificial intelligence.
Samsung said the new line, which is set to begin operations in 2028, is part of its broader effort to secure additional production capacity in anticipation of increased mid- to long-term demand for memory chips. The company also plans to build AI data centers in the country’s southwestern South Jeolla province and the southeastern city of Gumi to support government efforts to bridge the development gap between the Seoul metropolitan area and other regions.
Hyundai Motor Group, South Korea’s biggest automaker, said it plans to invest 125 trillion won ($86.3 billion) from 2026 to 2030 to expand domestic research and development and pursue new technologies such as AI, robotics and self-driving cars.
SK Group, another semiconductor powerhouse, and shipbuilders Hanwha Ocean and HD Hyundai also announced plans to increase their domestic investments. Both are central to South Korean commitments to boost the US shipbuilding industry, an area the President has highlighted donald trump In talks with Seoul.
In his meeting with heads of companies, Lee credited the business sector for helping his government negotiate trade deals with Washington, but urged companies to maintain strong domestic investment to ease concerns that they might cut domestic spending to invest more in the US. He said his government is considering various policy steps, including easing of regulations, to help create a more conducive business environment for companies.
SK Chairman Chae Tae-won, whose group plans to invest at least 128 trillion won ($88.3 billion) domestically by 2028 focusing on AI, said finalizing trade talks with the United States reduces uncertainties and paves the way for bolder domestic investment.
The two governments released details of the trade deal on Friday, which includes $150 billion in South Korean investment in the US shipbuilding sector and an additional $200 billion in other US industries, which Seoul says will be limited to $20 billion a year to prevent financial instability.
The United States agreed to reduce tariffs on South Korean cars and auto parts from 25% to 15%, and agreed not to impose tariffs on South Korean semiconductors on terms “in any way less favorable” than terms offered to comparable competitors in the future.