Hyundai, Korean Air to Invest $54 Billion in US
- Business Companies Investments World
Global Business Magazine- 5 minutes read
The US government’s twin policies – “Buy America” and “American Manufacturing Renaissance” are reaping fruits of investments as two major Korean companies have announced their intentions to invest close to $54 billion in the last two days in that country.
Hyundai Motor Group Chairman Chung Eui-sun has announced a $21 billion investment in the US manufacturing sector by 2028 and this includes a $5.8 billion in a steel plant in Ascension Parish, Louisiana, after meeting the US President Donald Trump at the White House.
Hyundai Motor Group’s investments include $9 billion to expand the US automobile production to 1.2 million units annually, $6 billion to enhance parts, logistics and steel business, increasing the localization of auto parts and strengthening supply chains, and another $6 billion to expand future industries and strengthen external partnerships and energy infrastructure, including EV charging, the company said.
The investment is expected to create more than 100,000 direct and indirect job opportunities by 2028, including 14,000 direct full-time jobs, it added.
Hyundai Motor Group’s new investment plan includes major contents such as expansion of Hyundai Motor’s finished vehicle production system, establishment of a new electric furnace for Hyundai Steel’s automotive steel sheet production, and energy cooperation such as small modular reactors (SMRs).
On its part, Korean Air said that it plans to purchase the US passenger aircraft and engines worth $32.7 billion from Boeing and GE Aerospace to expand and upgrade its fleet for full integration with smaller rival Asiana Airlines Inc.
Trump Lauds Hyundai Decision
Welcoming Hyundai’s decision, the US President said that it was a great honour to be working with Hyundai, a truly great company.
“Hyundai will be producing steel in America, and making its cars in America — as a result, they will not have to pay any tariffs,” Trump said.
The steel plant in Louisiana is expected to serve as the base for producing automotive steel plates, with the facility, which will create 1,300 American jobs, is set to start operating in 2029. The plant will localise production of other parts for vehicles.
Hyundai Motor Chairman also said that the facility will also serve as the foundation for a more self-reliant and secure automotive supply chain in the US.
Speaker of the US House of Representatives Mike Johnson said that Hyundai’s investment is further proof that the US President is delivering on his promise to create American jobs, jumpstart the economy after President Biden’s failures, and bring back America’s manufacturing industry.
“This incredible investment, which includes $6 billion for a steel plant in my home state of Louisiana, is welcome news to American workers and their families, and adds to the more than $2 trillion in the new US investments President Trump has secured in just two months,” he added.
According to a report by Yonhap News Agency, regarding President Trump’s great welcome of Hyundai Motor Group’s investment plan, a trade official said that linking the investments to the mutual tariff exemption targeting Korea is wishful thinking.
“President Trump’s remark that there are no tariffs on Hyundai cars is understood to mean that he is emphasising that Hyundai cars will not be subject to tariffs, but that they will not be subject to tariffs if they are in the US,” the official said.
