Korean conglomerates pledge US$464 billion of domestic investment

[SEOUL] Samsung Electronics, Hyundai Motor Group and LG Group pledged to invest a combined US$464 billion in South Korea over the next five years after meeting with President Lee Jae Myung, who is seeking to shore up the economy following the country’s trade deal with the US.

Samsung said it will invest 450 trillion won (S$403.4 billion) in the country, including in AI infrastructure and research and development, over the next five years, while Hyundai pledged 125.2 trillion won over the same period. LG will also invest 100 trillion won in critical materials.

The announcements came after a trade deal with the US sparked concerns over low domestic investment and the nation’s currency. South Korea previously agreed to channel US$350 billion into strategic US industries as part of the trade agreement.

Lee met with business leaders including Samsung’s Jay Y Lee, Hyundai’s Euisun Chung and LG Group’s Koo Kwang-mo. He urged them to expand domestic investment and offered government assistance, suggesting Seoul could adopt new forms of support, such as purchasing subordinated bonds issued by companies or assuming first-loss positions. BLOOMBERG