Leading South Korean companies Samsung Electronics, Hyundai Motor Group, and LG Group have committed to invest a combined $464 billion in the country over the next five years, following a high-profile meeting with President Lee Jae-myung. The pledges aim to strengthen domestic economic growth amid concerns raised by a recent trade deal with the United States.
Samsung announced it will invest 450 trillion won ($309.5 billion) in South Korea, focusing on artificial intelligence infrastructure, research, and development over the next five years. Hyundai Motor Group pledged 125.2 trillion won, while LG Group said it will allocate 100 trillion won toward critical materials production.
The commitments follow a trade agreement with the US that prompted worries about declining domestic investment and the stability of South Korea’s currency. As part of the deal, South Korea had previously agreed to channel $350 billion into strategic US industries.
President Lee met with top executives including Samsung’s Jay Y. Lee, Hyundai’s Euisun Chung, and LG Group’s Koo Kwang-mo, urging them to expand investment at home. He also offered government support, suggesting innovative measures such as purchasing subordinated corporate bonds or assuming first-loss positions to reduce financial risk for companies.
Analysts say these unprecedented investment pledges could bolster South Korea’s long-term economic resilience and technological competitiveness, while signaling strong cooperation between the government and the private sector in navigating global trade pressures.
