Samsung's 68 Corporations in Canada and Mexico... Tariffs Are a Pressing Issue

Uncertainty Remains Despite Trump's 'One-Month Delay'
201 Overseas Affiliates Operated by Major Conglomerates Counted
Oh Ilseon: "High Possibility of Impact on BEC Product Groups"

U.S. President Donald Trump has drawn the "tariff sword" against Canada and Mexico, with whom the United States-Mexico-Canada Agreement (USMCA) was signed, putting Korean companies operating in the two countries on high alert. Although he abruptly announced a one-month delay in imposing a 25% tariff, concerns remain over ongoing uncertainty. It is widely analyzed that companies producing products in these two countries and exporting them to the U.S. are likely to be hit hard.

According to the Korea CXO Institute, a corporate analysis firm, as of the 4th, among the 88 domestic large business groups designated by the Fair Trade Commission last year, 25 groups operate 201 overseas affiliates in Canada and Mexico. The regional distribution of these 201 affiliates is 110 in Canada and 91 in Mexico, respectively.

Not all overseas corporations located in the two countries will face a "tariff bomb," but manufacturing companies that produce products in local factories and export them to the U.S. will have to confront the tariff barrier.

Oh Il-seon, head of the Korea CXO Institute, analyzed, "Among major domestic conglomerates with manufacturing plants in the two countries, those in the so-called 'B·E·C' product groups?Battery, Electronics, and Car?such as secondary batteries, electronics, and automobiles, are highly likely to suffer damage to their export competitiveness to the U.S. due to the tariff bomb."

When simply counting overseas affiliates by group operating in Canada and Mexico, Samsung had the most with 68 affiliates?50 in Canada and 18 in Mexico. Samsung has established more than 40 affiliates in Canada alone, engaging in solar power, wind power, and renewable energy-related businesses. Regarding manufacturing and production, it is expected that affiliates in Mexico will have to overcome the U.S. tariff barriers more than those in Canada.

Hyundai Motor Company followed with 28 affiliates?12 in Canada and 16 in Mexico. Affiliates such as Hyundai Motor, Kia, and Hyundai Mobis conduct complete vehicle and parts manufacturing and sales businesses through their subsidiaries in Mexico.

Hanwha operates 14 affiliates, with 2 in Canada and 12 in Mexico. Most of these are companies related to solar power businesses. Among general manufacturing industries, it is understood that automotive parts are produced through affiliates operating in Mexico. LG has 11 affiliates?3 in Canada and 8 in Mexico. In Canada, LG Energy Solution effectively controls 'NextStar Energy,' which produces automotive batteries, while the company in Mexico produces electronic products.

In addition, POSCO (11 affiliates), LS (7), CJ, GS, Netmarble, Hyundai Department Store (6 each), SK, Naver, Hyosung (5 each), Doosan, Korea & Company, and EcoPro (3 each) have also expanded into the two countries.

Oh Il-seon of the Korea CXO Institute said, "It is not easy to relocate factories to the U.S. in the short term just because tariff barriers increase. Companies are expected to partially reduce the 'tariff shockwave' by increasing sales in the respective countries or diversifying markets to neighboring countries other than the U.S."

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