Seven Major Groups Announce Massive Domestic Investment Plans

Samsung Electronics will invest a total of 450 trillion won domestically over the next five years starting this year, including construction of the next-generation semiconductor plant Pyeongtaek Plant 5 (P5), while Hyundai Motor Group will invest a total of 125.2 trillion won domestically from next year through 2030. SK Group also decided to invest 128 trillion won by 2028 in projects including construction of a semiconductor plant in Yongin. President Lee Jae Myung revealed his commitment to pursue dramatic regulatory easing as concerns grew over sluggish domestic investment following tariff negotiations with the United States.

President Lee met with business leaders at a Korea-U.S. tariff negotiation follow-up meeting held at the Presidential Office in Yongsan, Seoul on Nov. 16. The meeting was held following the announcement of the "Joint Fact Sheet" containing the results of tariff and security negotiations on Nov. 14. Seven business leaders attended, including Samsung Electronics Chairman Lee Jae-yong, SK Group Chairman Chey Tae-won, Hyundai Motor Group Chairman Chung Eui-sun, LG Group Chairman Koo Kwang-mo, HD Hyundai Chairman Chung Ki-sun, Celltrion Chairman Seo Jung-jin, and Hanwha Group Vice Chairman Yeo Seung-joo.

President Lee stated, “There are concerns that domestic investment might decrease as investment in the U.S. becomes too intensified,” adding, “We will do our best to ensure there is no shortage, at least during this administration, in creating conditions for companies to operate freely and creatively.” He particularly requested, “If conditions are similar, I ask that companies pay more attention to domestic investment.”

Chairman Lee responded, “We will make greater efforts in expanding domestic investment, providing good jobs for young people, and coexisting with small and medium enterprises and venture companies.” He emphasized, “Although the current economic situation is not favorable, we will ensure that domestic industrial investment is not reduced,” and “As for employment, we will create a total of 60 thousand jobs over the next five years as previously promised.”

Each group presented domestic investment plans that day. Notably, Chey projected that once the semiconductor cluster to be built in Yongin is completed, 600 trillion won in investment will be realized. Koo stated he would implement the plan to invest 100 trillion won over five years starting from 2024. HD Hyundai Group decided to invest 15 trillion won over the next five years, including 8 trillion won in energy and machinery/robotics sectors and 7 trillion won in shipbuilding and marine sectors, while Hanwha Group decided to invest 11 trillion won over five years in shipbuilding and defense sectors. Celltrion Group is known to invest approximately 4 trillion won in facility investment and 3 trillion won in research and development (R&D) over three years.