Korean automaker commits $21b investment in US through 2028
Hyundai Motor Group Executive Chair Chung Euisun is flying to the United States to support the Korean government’s tariff negotiations with Washington, according to government sources Wednesday.
Chung met with US President Donald Trump as the Korean auto giant announced a $21 billion investment in the US at the White House in March, including a new steel mill in Louisiana and the expansion of local production at its new Georgia manufacturing factory, Hyundai Motor Group Metaplant America.
Chung is expected to bolster Korea’s bargaining chip as Seoul’s top officials look to cut a tariff agreement that can minimize the country’s export-heavy economy before the Friday deadline for trade talks, which was forewarned by Trump.
“This investment is a clear demonstration that tariffs very strongly work,” said Trump during the announcement. “Hyundai will be producing steel in America and making its cars in America. As a result, they will not have to pay any tariffs.”
Despite the lump sum investment decision, Hyundai Motor and its sister affiliate Kia have taken a blow from the 25 percent tariffs imposed on all auto imports into the US since April.
The Korean auto conglomerate has invested over $20 billion since entering the US in 1986.
Hyundai Motor's chief is Korea’s third business mogul to travel to the US this week, following the departures of Samsung Electronics Chairman Lee Jae-yong and Hanwha Group Vice Chairman Kim Dong-kwan.
hwkan@heraldcorp.com
