Lee urges executives to expand investment and jobs

Following the conclusion of South Korea-U.S. tariff negotiations, major South Korean companies have announced plans to boost domestic investment. Concerns had emerged that annual U.S.-bound investments could reach as much as $20 billion, or about 29 trillion won, potentially curbing local investment and eliminating jobs. As the business community moves to protect South Korea’s industrial base, calls are growing for the government to provide support measures, including regulatory improvements.

On Nov. 16, Samsung Electronics announced the groundbreaking of its state-of-the-art semiconductor plant, Pyeongtaek Campus 5, or P5. The company plans to complete the facility, which will require about 30 trillion won in investment, by 2028. Samsung also plans to promote regional development by building artificial intelligence, or AI, data centers outside the Seoul metropolitan area.

Hyundai Motor Group, considered one of the main beneficiaries of the tariff negotiations, said it will invest 125.2 trillion won in South Korea over five years, from next year through 2030. This represents an increase of 36.1 trillion won from the previous five-year domestic investment of 89.1 trillion won. The group also pledged to fully cover the U.S. tariffs its first-tier suppliers incurred this year.

On the same day, President Lee Jae-myung held a “Post U.S.-Korea Tariff Negotiations Private Joint Meeting” with top business leaders at the presidential office in Yongsan, Seoul, to discuss domestic investment plans. Seven executives attended, including Samsung Electronics Chairman Lee Jae-yong, SK Group Chairman Chey Tae-won, Hyundai Motor Group Chairman Chung Eui-sun, LG Group Chairman Koo Kwang-mo, HD Hyundai Chairman Chung Ki-sun, Celltrion Chairman Seo Jung-jin, and Hanwha Group Vice Chairman Yeo Seung-joo.

President Lee praised the business leaders for their efforts in the negotiations, saying, “The ones who worked the hardest were the business executives. Until now, there has never been a case in which the government and companies responded so effectively together. This is entirely thanks to your dedication and efforts.”

Lee added, “There are concerns that increased investment in the U.S. could reduce domestic investment, but I trust you will take measures to prevent that. I ask that you prioritize domestic investment whenever possible. Given the serious challenges of balanced national development, I also ask you to pay special attention to revitalizing regional industries.”

Samsung Electronics Chairman Lee Jae-yong said, “Companies are greatly relieved by the tariff settlement. There are concerns about domestic industry contraction, but Samsung will do everything to expand domestic investment and create quality jobs.”

Hyundai Motor Group Chairman Chung Eui-sun said, “We have increased our investment by 8.2 trillion won compared with previous plans. Our focus will be on fostering domestic AI and robotics industries and developing a green energy ecosystem.”


이동훈 기자 dhlee@donga.com