Hyundai Motor Group Metaplant America (HMGMA) located in Ellabell, Savannah, Georgia, USA. (Image courtesy of Hyundai Motor)
SEOUL, April 25, (Korea Bizwire) — South Korea’s largest corporations are ramping up their responses to the renewed threat of U.S. tariffs under the Trump administration by stockpiling inventory and expanding production within the United States, signaling a shift toward more aggressive contingency planning.
During first-quarter earnings calls on April 24, companies across the automotive, electronics, and steel sectors detailed efforts to minimize tariff exposure while closely monitoring Washington’s evolving trade policies.
Hyundai Motor Group Leads with Strategic Reshuffling
Hyundai Motor said it has secured over three months’ worth of finished vehicle inventory in North America and is actively reallocating production to avoid tariff-related disruptions. The automaker is moving U.S.-bound units of its Tucson SUV from its plant in Mexico to its Alabama facility, while shifting Canadian-bound production from Alabama back to Mexico.
“We expect to offset certain tariff impacts by stockpiling parts,” said Lee Seung-jo, head of Hyundai’s Finance and Strategy Division. He added that Hyundai is reviewing options to divert shipments of Korean-made vehicles to other production hubs while maintaining U.S. market share and profitability.
To coordinate its strategy, Hyundai launched a company-wide tariff response task force earlier this month.
Hyundai Steel, a key supplier within the group, also announced plans to build a 2.7 million-ton-per-year electric arc furnace steel mill in Louisiana. The facility aims to produce low-carbon automotive steel with profitability and high value-added output at its core.
LG Electronics Prioritizes U.S. Flexibility
LG Electronics is also leaning on its flexible global supply chain to manage tariff risk. The company plans to shift more production of washing machines and dryers to its Tennessee plant, with executive vice president Kim Ik-won noting this will allow LG to cover a “high-teen percentage” of its U.S.-bound home appliance sales.
Kim added that LG is evaluating the competitiveness of different production bases across various scenarios, keeping open the possibility of further expanding manufacturing capacity in the United States, depending on future policy shifts.
Semiconductor and Display Giants Monitor, But See Limited Impact — For Now
Other major players, including SK hynix and LG Display, said they are not yet significantly impacted but are staying alert. SK hynix, a key supplier for AI server memory chips, said its products face limited tariff exposure and that it will work with clients to minimize disruptions.
Some customers have moved up procurement schedules, but global demand trends remain stable, the company noted.
LG Display, which is indirectly affected via downstream customers, reported no current supply chain issues or pricing pressures. CFO Kim Sung-hyun said the company is “closely monitoring policy changes” and will act to avoid profitability risks or missed business opportunities.
Broader Industry Braces for Long-Term Shifts
As Washington’s trade posture hardens, Korean companies are positioning themselves to adapt through diversification, local investment, and logistical agility. While sectors like semiconductors have so far escaped the brunt of tariff changes, industry leaders are preparing for a broader and potentially more sustained wave of protectionism.
By preemptively recalibrating supply chains and facilities, South Korea’s corporate heavyweights hope to mitigate risk while preserving market share in a key export destination.
Ashley Song (ashley@koreabizwire.com)
