Increasing Investment in the U.S.

Major South Korean enterprises are moving to utilize U.S. efforts to reshape the global value chain of major industries. 

Major South Korean enterprises are accelerating their U.S.-centered global value chain reorganization with the United States in pursuit of more domestic production in the industries including semiconductor and battery.

In the semiconductor sector, the Joe Biden administration is planning to provide US$52 billion in subsidies for five years to come. The U.S. Senate passed this bill in June this year, and it is currently pending in the House of Representatives. Samsung Electronics, which may build another foundry in the United States, is expected to be able to benefit from the bill.

South Korean automakers are increasing their investment in the United States in step with the administration’s electric vehicle policy. Hyundai Motor Group announced in May this year that it would invest US$7.4 billion until 2025 in order to expand its EV production infrastructure in the United States.

South Korean EV battery manufacturers are building plants in the United States in cooperation with local automakers. For example, LG Energy Solution and GM are building plants in Ohio and Tennessee and SK Innovation is building two plants in Georgia and is going to build two more with Ford.

South Korean enterprises’ U.S. investment is increasing in the hydrogen industry as well. SK Group is currently an investor in Plug Power and Monolith and recently acquired Key Capture Energy, a grid solution provider. Hanwha Solutions acquired high-pressure tank manufacturer Cimarron for its hydrogen storage and transport business.

In addition, LG Chem is planning to build a bioplastic manufacturing plant in the United States by 2025. To this end, it signed an HOA for joint venture establishment with Archer Daniels Midland Company.

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