• Hyundai plans to invest 125.2 trillion won ($86.47 billion) in South Korea from 2026 to 2030.
• Samsung aims to invest 450 trillion won ($310.79 billion) to expand its chip production in Pyeongtaek.
• Both companies’ announcements follow a U.S. trade deal promising $350 billion in investments to strategic sectors.
• Concerns arise about domestic investments declining due to an increase in U.S.-bound investments.
• Mass production at Samsung’s new chip plant is expected to begin in 2028.

Hyundai Motor Group has announced plans to invest 125.2 trillion won ($86.47 billion) in South Korea between 2026 and 2030. This announcement follows the recent finalization of a trade deal that reduces U.S. tariffs on South Korean automobiles from 25% to 15%, raising confidence among domestic manufacturers. According to Hyundai Motor Group Chairman Euisun Chung, the company is aware of the concerns regarding potential declines in exports and domestic production due to these tariffs, stating their intention to diversify export markets and support affected auto parts manufacturers, among other initiatives, according to Reuters.

Meanwhile, Samsung Electronics has unveiled a broader investment plan of 450 trillion won ($310.79 billion) aimed primarily at enhancing the company's chip production capabilities in the face of increasing global demand for artificial intelligence. This investment, alongside Hyundai's plans, emerged during a meeting chaired by South Korean President Lee Jae Myung, who highlighted concerns regarding potential reductions in domestic investments as companies shift focus to U.S. markets. Lee urged businesses to enhance local investments and consult the government on utilizing the $350 billion investment commitment to the U.S., as reported by South China Morning Post and Reuters.

Samsung plans to add a new chip production line to its existing facility in Pyeongtaek to further support the rising demand from both traditional and AI servers. The company predicts a significant increase in semiconductor demand as the global AI market expands. They plan to initiate mass production at the new P5 plant by 2028, which will be part of the world's largest chip manufacturing complex. This commitment is made stronger in light of recent price hikes for memory chips, driven by a tightening supply chain, according to India Times and Reuters.

Jay Y. Lee, Chairman of Samsung Electronics, emphasized the company’s commitment to supporting the local economy by creating quality jobs and nurturing partnerships with small and medium-sized businesses. This aligns with broader efforts to bolster South Korea's economy while addressing the implications of the recent trade deal with the U.S., according to Reuters and South China Morning Post.