Washington: South Korean conglomerate Hyundai Motor Group has unveiled an ambitious plan to invest $21 billion in the United States by 2028. This announcement comes as U.S. President Donald Trump intensifies tariff measures to bolster domestic manufacturing.
According to Yonhap News Agency, Hyundai's Executive Chair, Euisun Chung, made the announcement alongside President Trump and Louisiana Governor Jeff Landry. The investment plan allocates $8.6 billion for the automotive sector, $6.1 billion for the steel industry, component parts, and logistics, and $6.3 billion for future industries and energy sectors.
Chung highlighted that a major part of the commitment includes a $6 billion investment to enhance the U.S. supply chain for steel and automotive parts. Furthermore, he announced plans for a new Hyundai Steel facility in Louisiana, which is expected to create 1,300 jobs and strengthen the automotive supply chain within the U.S.
Hyundai is set to open a new $8 billion automotive plant in Georgia, which will increase the company's U.S. vehicle production capacity to over 1 million units annually. This new facility in Savannah, Georgia, is anticipated to generate more than 8,500 jobs and was initially discussed during a 2019 meeting between Chung and Trump in Seoul.
Additionally, Hyundai plans to purchase $3 billion of U.S. liquefied natural gas to support energy security in South Korea. Trump praised Hyundai's investment as evidence that his tariff policy is effective, noting that manufacturing within the U.S. allows companies to avoid tariffs.
Hyundai aims to increase its automotive manufacturing capacity in the U.S. to 1.2 million cars per year, supported by the soon-to-be-opened Hyundai Motor Group Metaplant America complex in Georgia. The envisioned steel plant in Louisiana is projected to produce 2.7 million metric tons of steel annually and will supply U.S.-produced steel for Hyundai and Kia vehicles.
On another front, Hyundai plans to collaborate with U.S. companies on advanced technologies, including autonomous driving, robotics, and artificial intelligence. The company is also accelerating projects through its U.S. subsidiaries such as Boston Dynamics and Motional.
This investment marks Hyundai as the first South Korean company to announce a major investment plan in response to Trump's tariff threats. The White House has acknowledged Hyundai's efforts to localize production in the U.S., aligning with the Trump administration's goal to strengthen America's position in global manufacturing.
Hyundai's investment strategy is fostering cautious optimism that it could alleviate some of the tariff pressures facing South Korea. Meanwhile, the Trump administration's upcoming "reciprocal" tariffs plan has prompted South Korean officials to intensify diplomatic engagements to mitigate potential impacts on their economy.
President Trump's recent comments about South Korea's tariffs have been contested by Seoul, emphasizing that their tariffs under the U.S.-Korea Free Trade Agreement are less than 1 percent. Despite average tariffs on most-favored nations being higher, these do not apply to countries with free trade agreements with South Korea.