This photo provided by Hyundai Motor Group shows Euisun Chung, executive chair of the group, speaking at a groundbreaking ceremony for Hyundai Motor Group Metaplant America in Savannah of the U.S. state of Georgia on Oct. 26, 2022. (Image courtesy of Yonhap)
WASHINGTON, March 24 (Korea Bizwire) — South Korean conglomerate Hyundai Motor Group said Monday it will invest US$21 billion in the United States through 2028, as U.S. President Donald Trump is ramping up tariff pressure to boost domestic manufacturing.
The group’s Executive Chair Euisun Chung, alongside Trump and Louisiana Gov. Jeff Landry, made the announcement on the multipronged plan that includes an investment of $8.6 billion for the automotive sector, $6.1 billion for the steel industry, component parts and logistics, and $6.3 billion for future industry sectors and energy.
“Today, I am pleased to announce an additional $21 billion in new investment over the next four years — our largest U.S. investment ever. A key part of this commitment is our $6 billion investment to strengthen the U.S. supply chain (for) steel and parts for automobiles,” he said at the White House.
“We are especially excited about Hyundai Steel’s multibillion (dollar) investment in a new facility in Louisiana, which will create 1,300 American jobs and serve as a foundation for a more self-reliant and secure automotive supply chain in the U.S.”
Chung also said that Hyundai will open a new $8 billion automotive plant in Georgia this week.
“With this, our U.S. vehicle production will exceed 1 million units per year,” he said. “Our decision to invest in Savannah, Georgia — creating more than 8,500 American jobs — was initiated during my meeting with President Trump in Seoul in 2019.”
In addition, the tycoon said that the conglomerate will purchase $3 billion worth of U.S. liquefied natural gas to support America’s energy industry and enhance South Korea’s energy security. He also invited Trump to visit one of Hyundai’s U.S.-based manufacturing facilities to see first-hand Hyundai’s commitment to the U.S.
Trump stressed that Hyundai’s investment is a “clear” demonstration that his tariff policy “very strongly” works.
“The tariffs are bringing them in at levels that have not been witnessed. Hyundai will be producing steel in America and making its cars in America,” he said.
“As a result, they will not have to pay any tariffs. You know, there are no tariffs if you make your product in America. … That’s why so many people are coming.”
The president called Hyundai a “truly great company.”
“Hyundai is a great company. We have other great companies coming in, and we have some that are going to be staying here and very much expanding, and we have tremendous interest in every business,” he said. “I can’t just say automobiles, but automobiles is a big one, and this is the beginning of a lot of things happening.”
This file photo, taken Feb. 11, 2025, shows vehicles waiting to be exported at the port of Hyundai Motor Co. in Ulsan, about 305 kilometers southeast of Seoul. (Image courtesy of Yonhap)
With its new $8.6 billion investment on the automotive front, Hyundai seeks to establish a capacity for building 1.2 million cars per year by bolstering the yearly manufacturing capacity of Hyundai Motor Group Metaplant America — a soon-to-be-opened complex in Georgia — to 500,000 vehicles from 300,000 vehicles.
The conglomerate’s envisioned steel plant in Louisiana is aimed at producing 2.7 million metric tons of steel a year, as well as supplying U.S.-produced steel for Hyundai and Kia cars, as part of efforts to address business uncertainties arising from U.S. tariffs, according to the company.
Hyundai Steel will inject $5.8 billion into the electric arc furnace-based integrated steel mill by 2029, with an aim to start production in the same year.
“We will supply automotive steel produced at the U.S. plant for Hyundai and Kia’s U.S.-made strategic vehicles, while exploring supply deals with carmakers in Latin America and Europe,” the steelmaker said in a press release.
If built, the Louisiana steel plant will be Hyundai Steel’s first overseas production facility.
On the future industry and energy front, Hyundai plans to expand cooperation with U.S. enterprises over cutting-edge technologies, such as autonomous driving, robotics, artificial intelligence and advanced air mobility. The company also seeks to accelerate projects of its U.S. subsidiaries — Boston Dynamics, a robotics design firm; Supernal, a smart mobility service provider; and Motional, an autonomous vehicle company.
Separately, the automotive company is proceeding with Korea-based investments totaling 24.3 trillion won this year, it pointed out.
Monday’s announcement made Hyundai the first South Korean firm to announce a large-scale investment plan in the face of Trump’s tariff threats.
In its recent press releases, the White House mentioned Hyundai is planning to “localize production in the U.S.” as it underscored progress in the Trump administration’s efforts to position America as a “global superpower in manufacturing.”
Hyundai’s investment scheme is raising cautious hopes that it could help South Korea ease Trump’s tariff pressure.
The Trump administration plans to roll out country-by-country “reciprocal” tariffs to match what other countries levy on U.S. exports. The new tariffs are to be customized based on trading partners’ tariff- and non-tariff barriers, as well as other factors, such as exchange rates.
South Korean officials have been ramping up diplomatic efforts to avoid new U.S. tariffs or at least minimize their impact on Asia’s fourth-largest economy at a time when Trump appears to have a negative view on South Korea as a trading partner.
During an address to Congress earlier this month, Trump claimed South Korea’s average tariff is four times higher than that of the U.S. — a charge that Seoul countered by saying that it stands at less than 1 percent under a bilateral free trade agreement (FTA) with the U.S.
South Korea’s average tariff on its most-favored nations (MFNs) stands at around 13.4 percent — compared with the U.S.’ 3.3 percent on its MFNs — but that rate is not applicable to countries with FTAs with Korea.
(Yonhap)
