Washington: South Korean companies are expected to unveil new investment plans in the United States as part of the follow-up to a recent tariff deal between Seoul and Washington, experts have indicated. This anticipation is mounting ahead of a planned summit between the leaders of the two nations.
According to Yonhap News Agency, while specific details have not yet been confirmed, these potential announcements would align with the agreement that reduces tariffs on South Korean exports to the U.S. from 25 percent to 15 percent. In exchange, South Korea has pledged a US$350 billion investment package. U.S. President Donald Trump is scheduled to meet with South Korean President Lee Jae Myung at the White House in two weeks to discuss the implementation and follow-up measures.
President Lee stated that the investment commitment under the agreement aims to bolster bilateral cooperation in critical economic sectors. Of the total package, $150 billion is earmarked for revitalizing the U.S. shipbuilding industry. Yoon Sang-ha, from the Korea Institute for International Economic Policy, mentioned that the presence of top conglomerate leaders in Washington during the negotiations suggests a coordinated investment announcement may occur at the proposed summit.
Samsung Electronics Co. Chairman Lee Jae-yong, Hyundai Motor Group Executive Chair Euisun Chung, and Hanwha Group Vice Chairman Kim Dong-kwan were in Washington during the tariff discussions, indicating close coordination between the South Korean government and industry leaders. The U.S. is set to begin imposing reciprocal tariffs shortly.
Yoon expressed confidence in Seoul's handling of the commitment, especially when compared to Japan's $550 billion and the European Union's $600 billion pledges. Hanwha Group, which acquired Philly Shipyard in Philadelphia last year, is expected to play a significant role in the U.S. shipbuilding initiative supported by both governments.
A Hanwha spokesperson mentioned that while the company does not have an official stance on the trade deal, plans to expand or upgrade facilities at Philly Shipyard have been previously discussed. Hyundai Motor Group has already committed to a $21 billion investment in the U.S. by 2028, focusing on mobility technologies, and may announce additional investments at the upcoming summit.
Yoon highlighted the need for further discussions on the pledged investments between the two governments. The South Korean presidential office indicated that most of the financial commitment would likely involve loans and guarantees, with details remaining to be finalized.
Regarding the 15 percent sectoral tariffs on automobile exports, South Korean officials expressed disappointment at the rate not being reduced further. However, an auto industry official noted that the 15 percent tariff does not diminish Korea's competitiveness compared to Japan or the EU.
Yoon suggested that if the 15 percent rate becomes permanent, Korean automakers might consider increasing production in the U.S. to mitigate cost burdens. The South Korean business community welcomed the tariff deal, expressing hope for enhanced economic cooperation between the two countries.