Samsung, Hyundai Motor, LG, SK, and others to invest $40 billion in the US... Moon Seung-wook urges "tax benefits and incentives for Korean companies"

President Moon Jae-in, visiting the United States, is taking a commemorative photo with U.S. Secretary of Commerce Gina Raimondo and Minister Moon Seung-wook of the Ministry of Trade, Industry and Energy before the Korea-U.S. Business Roundtable event held at the U.S. Department of Commerce in Washington on the morning of the 21st (local time).
[Image source=Yonhap News]

[Asia Economy Reporter Joo Sang-don] Samsung Electronics, Hyundai Motor Company, LG Energy Solution, and SK announced investment plans totaling $40 billion on the 21st (local time). Moon Seung-wook, Minister of Trade, Industry and Energy, urged the U.S. government for active support regarding investment incentives such as tax benefits and infrastructure.

Minister Moon co-hosted the "Korea-U.S. Business Roundtable" at the U.S. Department of Commerce in Washington D.C. with U.S. Secretary of Commerce Gina Raimondo during President Moon Jae-in’s visit to the U.S. (June 20?23).

Attendees at the event included Samsung Electronics Vice Chairman Kim Ki-nam, SK Chairman Chey Tae-won, Hyundai Motor President Gong Young-woon, LG Energy Solution President Kim Jong-hyun, Samsung Biologics President John Rim, SK Bioscience President Ahn Jae-yong, as well as Edward Breen, Chairman of DuPont; Steve Mollenkopf, CEO of Qualcomm; Ren?e James, CEO of Ampere Computing; Steve Kiefer, GM International President; and Stanley Erck, CEO of Novavax.

Some companies attending the event announced investment plans. Samsung Electronics decided to invest $17 billion in establishing a new foundry plant to meet the increasing demand for foundry services in the U.S.

Hyundai Motor reaffirmed its plan to invest $7.4 billion by 2025 in future mobility sectors, including electric vehicle production and charging infrastructure expansion in the U.S., which was announced on the 18th.

LG Energy Solution committed to a cumulative investment of $10 billion by 2025, including the recently established battery plant in Tennessee, a joint venture with GM.

SK, which is advancing semiconductor, battery, and bio businesses?key industries of the 4th Industrial Revolution?expressed interest in investing in the U.S. in these sectors.

Minister Moon emphasized, "It is necessary for companies from both countries to continue building a harmonious and resilient stable industrial ecosystem through mutually complementary supply chain cooperation. In establishing stable supply chains for semiconductors and pharmaceuticals, as well as transitioning to an eco-friendly and low-carbon economy with batteries and electric vehicles, not only mutual investments but also various policy provisions such as R&D, standards, workforce training, and exchanges between the two governments are important."

In response, U.S. Secretary of Commerce Raimondo said, "The most innovative cooperation between Korean and U.S. companies in semiconductors, electric vehicles, and batteries will be strengthened. We welcome Korean companies’ investments and will actively support cooperation between Korean and U.S. companies, including encouraging future investments by our companies."

U.S. companies DuPont and Qualcomm also pledged investments in Korea. DuPont will establish an R&D center in Korea to develop core semiconductor material technologies such as photoresists. This additional investment follows DuPont’s announcement last January of investments in EUV photoresist and CMP pad manufacturing facilities, and is expected to contribute to strengthening the competitiveness of Korea’s materials, parts, and equipment industry through win-win cooperation with domestic companies. Qualcomm, having grown through cooperation with Korea from CDMA to 5G development in the telecommunications field, stated it will continue to expand investments in Korean partners.

Additionally, U.S. companies highlighted examples of Korea-U.S. corporate cooperation and emphasized their intention to expand collaboration. GM, which has made large-scale investments in Korea, strengthened cooperation with the Korean battery industry based on recent collaboration with LG Energy Solution. Novavax, developing vaccines related to COVID-19 and next-generation infectious diseases, expressed its intention to continuously expand cooperation with SK Bioscience.

Minister Moon requested, "Policy support is needed where the government shares the risks associated with corporate investments. Therefore, active support from the U.S. government regarding investment incentives such as tax benefits and infrastructure is necessary for future investments by our companies in the U.S." He also requested a new approach to ensure the recovery of U.S. manufacturing through strengthening the Korea-U.S. steel industry value chain concerning the U.S. steel Section 232 review currently underway by the U.S. government.

This content was produced with the assistance of AI translation services.