South Korean companies plan more US investment pledges, report says
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The trade agreement between the two countries reached in July capped US tariffs on imports of South Korean goods at 15 per cent.
PHOTO: AFP
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SEOUL - South Korea is set to unveil about US$150 billion (S$192.8 billion) in US investment plans by private companies during a summit between President Lee Jae Myung and US President Donald Trump, the Hankyoreh newspaper reported on Aug 21.
The pledge is likely to include both ongoing and future projects and will be separate from the US$350 billion South Korea agreed to invest in the US as part of a trade agreement struck in July.
While the US$150 billion package will be highlighted at the summit, officials do not expect further discussion of the US$350 billion investment fund, which was a centrepiece of July’s trade agreement, the newspaper said, citing unidentified government officials.
The trade agreement between the two countries reached in July capped US tariffs on imports of South Korean goods at 15 per cent,
Mr Lee is set to meet Mr Trump on Aug 25, a high-stakes trip that is also expected to cover security issues.
The scale of US-bound investments to be announced on the occasion of the South Korea-US summit has not yet been determined, South Korea’s Industry Ministry said in a statement late on Aug 20.
The government did not offer an immediate comment when reached by Bloomberg News.
Several Korean companies already have existing US investment plans, including Samsung Electronics’ multi-billion-dollar semiconductor plant in Texas and Hyundai Motor’s US$21 billion pledge for vehicle and steel facilities.
In 2024, Hanwha Ocean and Hanwha Systems acquired Philly Shipyard for US$100 million and parent Hanwha Group is preparing detailed investment plans tied to shipbuilding cooperation in the United States, the report added.
Leaders of South Korean conglomerates, including Samsung executive chairman Jay Y. Lee, Hyundai Motor executive chairman and chief executive Euisun Chung, SK chairman Chey Tae-won and LG chairman Koo Kwang-mo, will join the delegation for the US trip, Yonhap News reported last week.
Hanwha Group vice-chairman Kim Dong-kwan, HD Hyundai executive vice-chairman Chung Ki-sun and Hanjin Group chairman and CEO Walter Cho may also join, according to Yonhap
South Korea has previously said that the country’s US$350 billion investment pledge as part of the US trade deal is largely structured as loan guarantees rather than direct capital injections, and the actual equity commitment would remain below 5 per cent. BLOOMBERG
