Chairman Chung Announces U.S. Investment Plan at the White House
"The Largest Investment Ever Made in the U.S."
Establishment of Facilities Including Louisiana Steel Plant... Localizing the Supply Chain
Trump: "Honored to Host a Truly Great Company"
Hyundai Motor Group Chairman Chung Euisun announced a new investment plan in the United States amounting to $21 billion (approximately 31 trillion KRW) over the next four years, including the establishment of a steel plant in Louisiana, at the White House on the 24th (local time). Chairman Chung stated, "This is the largest investment ever made in the United States." The strategy is to expand local production capacity through large-scale investment in the U.S. to directly overcome the tariff risks posed by U.S. President Donald Trump.
President Trump praised Hyundai Motor as a "truly great company," saying, "Hyundai produces steel and automobiles in the United States, so they do not have to pay tariffs as a result."
On the afternoon of the 24th (local time), Chairman Chung announced Hyundai Motor's investment plan centered on these points at a meeting hosted by President Trump at the White House. The event was attended by Louisiana Governor John Bel Edwards, U.S. House Speaker Mike Johnson, Hyundai Motor Vice Chairman Jang Jae-hoon, and Hyundai Motor President Sung Kim, among others.
Chairman Chung said, "Since entering the U.S. market in 1986, we have invested $20 billion and created 570,000 jobs. I am pleased to share the news of a new $21 billion investment over the next four years." He added, "The core of this investment is to strengthen the supply chain within the U.S. across steel, parts, and automobiles. In particular, by investing billions of dollars in the Louisiana steel plant, we will create 1,300 American jobs and establish a foundation for a more self-reliant and secure automotive supply chain in the U.S."
He also announced plans to purchase $3 billion worth of U.S.-produced liquefied natural gas (LNG) to support the U.S. energy industry and enhance energy security.
Chairman Chung emphasized, "Under President Trump's leadership, we will expand our business and increase jobs in the U.S. Hyundai Motor Group is proud to be a stronger partner in the future of American industry." He then extended a polite invitation to President Trump, saying, "I respectfully invite you to visit one of our state-of-the-art manufacturing facilities to personally witness our commitment to the U.S. and American workers," to which President Trump responded, "Okay."
Before Chairman Chung's remarks, President Trump said, "It is an honor to host a truly great company like Hyundai Motor. The Louisiana steel plant will supply steel to Hyundai's automotive parts and vehicle plants in Alabama and Georgia, which will soon produce more than one million American-made vehicles annually." He also stated, "This investment is clear evidence that tariffs are very effective. As you know, if products are made in the U.S., there are no tariffs. Many companies and factories that never considered entering the U.S. before are now coming in," reiterating his point.
Hyundai Motor unveiled a total $21 billion investment plan in the U.S., including the establishment of the Louisiana steel plant. Specifically, $8.6 billion will be invested in automobile production, $6.1 billion in parts, logistics, and steel, and $6.3 billion in future industries and energy. Hyundai plans to increase local production capacity by 200,000 units through its third U.S. plant, the 'Hyundai Motor Group Meta Plant America (HMGMA),' scheduled for completion on the 26th, securing an annual local production capacity of over 1.2 million vehicles.
This new investment announcement by Hyundai Motor is the first by a Korean company during President Trump's second term and came about a week before Trump's announcement of reciprocal tariffs by country on April 2. President Trump has also warned of imposing item-specific tariffs of up to 25% on imported automobiles and has repeatedly urged companies to increase local production to avoid tariffs. Hyundai plans to overcome the tariff onslaught by expanding local production capacity through large-scale investment. Additionally, with the construction of the Louisiana steel plant, Hyundai is expected to locally source steel for vehicles produced in U.S. plants, thereby avoiding the 25% steel and aluminum tariffs enacted by the U.S. on the 12th, which should further enhance price competitiveness.
Furthermore, since the automobile sector is the largest item in Korea's trade surplus with the U.S., attention is focused on the potential impact of Hyundai's investment plan on future tariff negotiations with the U.S. It is being watched whether this could help reduce trade pressure such as tariff rate reductions. During the announcement event, President Trump responded to reporters' questions about reciprocal tariffs by saying, "We can grant exemptions to several countries." As the U.S. is expected to target the so-called 'Dirty 15' countries with large trade deficits for reciprocal tariffs, it was anticipated that Korea, the eighth largest trade partner with a trade deficit from the U.S. perspective, would find it difficult to avoid tariff bombs. Korea's trade surplus with the U.S. reached a record high of $55.7 billion last year.
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