Hyundai to lift US investment to $33 billion after Lee visit
Sign up now: Get ST's newsletters delivered to your inbox
Hyundai's four-year US investment plan marks a US$5 billion increase from the US$21 billion the company initially unveiled in March.
PHOTO: REUTERS
Follow topic:
SEOUL - Hyundai Motor will increase its investment in the United States to US$26 billion (S$33.4 billion) through 2028, as it seeks to expand autos, steel and robotics production, underscoring the South Korean conglomerate’s deepening economic ties with Washington.
The four-year plan marks a US$5 billion increase from the US$21 billion the company initially unveiled in March, the group said in a statement on Aug 26. The package includes a new steel mill in Louisiana, expanded auto production, and a robotics facility capable of building 30,000 units a year, together creating 25,000 additional jobs.
The commitment came just hours after South Korean President Lee Jae-myung and US President Donald Trump held their first summit in Washington
Several other South Korean companies announced initiatives during Mr Lee’s visit, including Korean Air Lines’ pledging to buy more than 100 Boeing jets worth US$36.2 billion and Korea Gas saying it would purchase more liquefied natural gas.
The 15 per cent tariff on Korean goods set under July’s trade agreement also remains unchanged, sparing the country’s export-dependent economy from the steeper 25 per cent rate Mr Trump had threatened. As part of the deal, the South Korean government committed US$350 billion in US investments, including a US$150 billion fund to revive US shipbuilding.
Hyundai Motor, which entered the US market in 1986, has already invested more than US$20.5 billion, it said in the statement. Its latest commitment comes as Seoul seeks to ease trade and security tensions with Washington, while positioning its biggest conglomerates as indispensable partners in the American supply chain.
Hyundai Motor shares fell as much as 1.1 per cent, while the benchmark Kospi Index dropped 1 per cent. BLOOMBERG
