[SEOUL] Hyundai Motor Group will increase its investment in the US to US$26 billion to 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 on Tuesday (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 and discussed a range of issues, including a recently struck trade deal. Trump pledged to buy Korean-built ships, while both leaders voiced optimism on cooperation over North Korea, and broader collective security.
Several other South Korean companies announced initiatives during 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 LNG.
The 15 per cent tariff on Korean goods set under last month’s trade agreement also remains unchanged, sparing the country’s export-dependent economy from the steeper 25 per cent rate Trump had threatened. As part of the deal, the Korean government committed US$350 billion in US investments, including a US$150 billion fund to revive US shipbuilding.
Hyundai Motor Group, which entered the US market in 1986, has already invested more than US$20.5 billion, it said. 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
