South Korea’s top companies are ramping up domestic investments after the recent US-South Korea trade agreement raised concerns that local manufacturing might lose focus. Samsung Electronics and Hyundai Motor Group, along with other major manufacturers, announced plans to invest heavily at home despite commitments to spend $350 billion in US strategic sectors.
Samsung Electronics will build a new chip production line at its Pyeongtaek plant to meet growing demand driven by the global AI boom. This investment is part of Samsung Group’s 450 trillion won $310.79 billion plan for domestic projects over the next five years. The new P5 plant will focus on memory chips for traditional and AI servers, with mass production set to start in 2028. The expansion also includes additional infrastructure to support operations, reflecting Samsung’s anticipation of long-term growth in memory semiconductors.
The announcements came during a meeting between South Korean President Lee Jae Myung and business leaders. “There are concerns that domestic investment might shrink as US-bound investments strengthen,” Lee said, urging companies to prioritize local projects and to consult the government on effectively using the $350 billion overseas investment package. Samsung Chairman Jay Y. Lee added, “Samsung will raise domestic investment, create quality jobs for young people and make even more efforts for a win-win with small and medium-sized, as well as venture companies.”
Hyundai Motor Group confirmed domestic investments of 125.2 trillion won from 2026 to 2030, while shipbuilders including Hanwha Ocean and HD Hyundai also announced local investment plans. Semiconductor prices are rising sharply as the global push for AI chip production limits supply for smartphones, computers, and servers. Samsung recently increased prices of certain memory chips by as much as 60 percent compared to September, reflecting strong market demand and the company’s strategy to secure production lines ahead of future growth.
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