Samsung and other South Korean firms pledge larger domestic investments after U.S. tariff deal

Samsung Electronics and different large South Korean companies connected Sunday announced caller home concern plans astatine a gathering with President Lee Jae Myung, who hopes the moves volition antagonistic concerns that the firms would prioritize U.S. investments nether a commercialized deal.

Lee's gathering with concern leaders came days aft his authorities finalized a commercialized woody with the United States, successful which Seoul pledged to put $350 cardinal successful U.S. industries successful speech for averting the Trump administration's highest tariffs.

Samsung, a planetary person successful machine chips, said it volition put 450 trillion won ($310 billion) implicit the adjacent 5 years to grow its home operations, including gathering different accumulation enactment astatine its Pyeongtaek manufacturing hub to conscionable surging planetary semiconductor demands fueled by artificial intelligence.

Samsung said the caller line, acceptable to statesman operations successful 2028, is portion of its broader effort to unafraid further accumulation capableness successful anticipation of rising mid- to semipermanent demands for representation chips. The institution besides plans to physique AI information centers successful the country's southwest South Jeolla Province and the southeastern metropolis of Gumi to enactment authorities efforts to trim the improvement spread betwixt the greater Seoul metropolitan country and different regions.

Hyundai Motor, South Korea's largest automaker, said it plans to put 125 trillion won ($86.3 billion) from 2026 to 2030 to grow home probe and improvement and beforehand caller technologies specified arsenic AI, robotics and self-driving cars.

SK Group, different semiconductor powerhouse, and shipbuilders Hanwha Ocean and HD Hyundai besides announced plans to summation their home investments. Both are cardinal to South Korean commitments to boost the U.S. shipbuilding industry, a assemblage highlighted by President Donald Trump successful negotiations with Seoul.

In his gathering with the companies' chiefs, Lee credited the concern assemblage for helping his authorities negociate the commercialized woody with Washington but urged the companies to support beardown home investments to easiness concerns they mightiness chopped spending astatine location to put much successful America. He said his authorities is exploring assorted argumentation steps, including easing regulations, to assistance make a much favorable concern situation for the companies.

SK Chair Chey Tae-won, whose radical plans to put astatine slightest 128 trillion won ($88.3 billion) domestically done 2028 with a absorption connected AI, said the finalization of commercialized talks with the United States eases uncertainties and paves the mode for bolder home investment.

The 2 governments released the details of the commercialized statement connected Friday, including $150 cardinal successful South Korean investments successful the U.S. shipbuilding assemblage and an further $200 cardinal successful different American industries. Seoul says this volition beryllium capped astatine $20 cardinal per twelvemonth to forestall fiscal instability.

The United States agreed to trim tariffs connected South Korean cars and car parts from 25% to 15%, and to use tariffs connected South Korean semiconductors connected presumption "no little favorable" than those granted to comparable competitors successful the future.