SEOUL, January 13 (AJP) - Major South Korean companies are committing to substantial investments in the United States, signaling strategic moves to align with shifting trade and economic policies under a second Trump administration.
On Nov. 13, CJ Group broke ground on a $540 million Asian food manufacturing plant in South Dakota, a day after Governor Kristi Noem was tapped as the nominee for homeland security secretary by President-elect Donald Trump.
SPC Group followed suit on Jan. 2, unveiling plans for its first U.S. bakery facility in Texas with an investment of $160 million. The company, which operates the Paris Baguette chain, aims to expand its North American presence from 200 stores to 1,000 by 2030.
SPC Chairman Hur Young-in is among Korean business leaders who are expected to attend Trump’s inauguration.
Hyundai Steel is also eyeing the U.S. market, considering Louisiana as the site for its first steel mill. Meanwhile, LS Cable & System is set to break ground this April on the nation’s largest submarine cable factory in Virginia, with an investment of approximately $770 million.
In Tennessee, LG Electronics is evaluating plans to expand its washing machine plant to include the production of refrigerators and televisions. The move comes in response to trade measures, including safeguard tariffs of up to 50 percent, imposed during Trump’s first term.
LG CEO Jo Joo-wan emphasized last week that the company is preparing for a range of scenarios to navigate potential policy shifts.
The wave of investments highlights a calculated response to the anticipated economic policies of a Trump second term, including universal import tariffs of 10 to 20 percent and the possible rollback of subsidies under the Inflation Reduction Act and the CHIPS Act.
“South Korean firms are positioning themselves to mitigate risks while capitalizing on growth opportunities in the U.S. market,” said an industry analyst.
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