Samsung, Hyundai announce US$310 billion domestic investment plans
South Korean manufacturers unveiled investments for the next five years as a US trade deal raised concerns of weakening manufacturing at home
Samsung Electronics, Hyundai Motor and other major South Korean manufacturers on Sunday unveiled domestic investment plans, as a US trade deal raised concerns that investment in the US could weaken manufacturing at home.
Samsung Electronics will add a chip production line at its plant in the South Korean city of Pyeongtaek to meet rising demand amid the global boom in artificial intelligence, as part of the parent group’s 450 trillion won (US$310.79 billion) investments at home over the next five years, the company said.
Samsung’s announcement came as South Korean President Lee Jae Myung held a meeting on Sunday with the country’s business leaders, after a US trade deal including a South Korean promise to invest US$350 billion in US strategic sectors was finalised on Friday.
“There are concerns that domestic investment might shrink as US-bound investments strengthen,” Lee said at the meeting, as he asked companies to consider domestic investments more.
The president also asked companies to consult the government to make good use of the US$350 billion investment package for their overseas investments.
“Samsung will raise domestic investment, create quality jobs for young people and make even more efforts for a win-win with small and medium-sized, as well as venture companies,” Samsung Electronics Chairman Jay Y. Lee said.