Samsung Electronics, Hyundai Motor and other major South Korean manufacturers have revealed domestic investment plans worth hundreds of billions of dollars, as they seek to reassure that local manufacturing will remain strong despite a new US trade deal.

Samsung Electronics announced $310 billion in domestic investments over the next five years. Plans include building a new semiconductor production line at its Pyeongtaek hub, expected to begin operations in 2028. Investments will also support AI data centres, next-gen battery production, and OLED expansion.

Samsung's announcement came as South Korean President Lee Jae Myung held a meeting on Sunday with the country's business leaders. The meeting took place just after South Korea finalised a US trade deal, pledging $350 billion in US investments to avoid steep tariffs form the Trump administration.

At the meeting, Lee Jae Myung shared concerns that domestic investment might shrink as US bound investments strengthen, Reuters reported.

The president also asked companies to liaise with the government to make the most of the £350 billion investment package for their overseas investments.

"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," Samsung Electronics chairman Jay Y. Lee said.

At the meeting, Hyundai Motor Group also announced domestic investments worth $280 billion from 2026 to 2030, with the firm committed to expanding electric vehicle (EV) and hydrogen car production. Shipbuilders Hanwha Ocean and HD Hyundai also unveiled investment plans.

Samsung confirmed that its new semiconductor plant in Pyeongtaek will be dedicated to producing advanced memory chips designed to serve both traditional data servers and AI-driven workloads.

Mass production at the plant will begin in 2028, the South Korean chipmaker said, aligning with expected surge in AI demand. The firm added that it also plans further infrastructure investments to support further operations.

"With the global AI era entering full scale, Samsung Electronics anticipates a mid- to long-term expansion in demand for memory semiconductors. In order to respond promptly to market changes, the company intends to secure production lines in advance," Samsung Electronics said in a statement.

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