South Korean Giants Boost Domestic Investment Amid U.S. Trade Deal Concerns

South Korea’s leading manufacturers, including Samsung Electronics and Hyundai Motor Group, announced major domestic investment plans on Sunday as concerns grow that increased U.S.-bound spending could weaken the country’s industrial base. The announcements followed the finalization of a U.S. trade deal on Friday, which includes South Korea’s commitment to invest $350 billion in key U.S. sectors.

Samsung Electronics confirmed it will expand its semiconductor capacity by adding a new chip production line at its massive Pyeongtaek campus. This investment is part of Samsung Group’s broader 450 trillion won ($310.79 billion) commitment to domestic growth over the next five years. The expansion aims to meet surging global demand for memory chips driven by artificial intelligence, advanced servers, and data-heavy devices.

President Lee Jae Myung acknowledged growing concerns that U.S. investments could slow South Korean manufacturing at home. He urged business leaders to prioritize domestic projects while also leveraging the $350 billion U.S. investment package to strengthen global competitiveness.

Samsung Chairman Jay Y. Lee pledged to boost local investments, expand high-quality youth employment, and deepen collaboration with small, medium-sized, and venture companies.

During the meeting, Hyundai Motor Group revealed its own plan to invest 125.2 trillion won in South Korea between 2026 and 2030. Major shipbuilders, including Hanwha Ocean and HD Hyundai, also unveiled domestic investment initiatives.

Samsung’s new facility, known as the P5 plant, will focus on memory chips for AI and traditional servers. The project was previously delayed in late 2023 due to declining demand for smartphone and PC chips and broader market oversupply. According to the company, mass production at P5 is expected to begin in 2028, supported by additional infrastructure investments to scale operations.

With global semiconductor prices climbing and AI adoption accelerating, Samsung emphasized its strategy to secure production capacity early to stay ahead of market shifts.