Samsung Electronics, Hyundai Motor and other major South Korean manufacturers have announced large domestic investment plans, aiming to reassure that production at home will remain strong despite a new trade agreement with the US.

Samsung said it will invest 450 trillion won (about $310 billion) in South Korea over the next five years. The package includes a new semiconductor production line at its Pyeongtaek hub, targeted to begin mass production in 2028, alongside spending on AI data centres, next‑generation batteries and OLED capacity.

The announcements came at a Sunday meeting with President Lee Jae Myung, held days after Seoul finalised a US trade deal pledging $350 billion in investments across American industries in exchange for the Trump administration withdrawing the highest tariffs. Lee acknowledged concerns that US‑bound capital could dilute domestic investment and urged firms to maintain strong commitments at home.

“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 outlined domestic investments totalling 125.2 trillion won from 2026 to 2030. The Group said funds will advance AI, robotics and autonomous driving, expand electrified vehicle production, and support hydrogen initiatives, including a 930 billion won fuel cell and PEM electrolyser facility scheduled to start operations in 2027.

Samsung confirmed the new Pyeongtaek line will produce advanced memory chips to serve both traditional data servers and AI workloads. The company framed the build as securing capacity ahead of mid‑ to long‑term demand growth, noting that memory pricing has tightened amid the global AI boom.

According to government and media reports, the trade deal includes $150 billion from South Korea into US shipbuilding and a further $200 billion into other US industries, capped at $20 billion per year to avoid financial strain. In return, the United States agreed to reduce tariffs on South Korean cars and auto parts from 25% to 15% and to apply future semiconductor tariffs on terms no less favourable than those granted to comparable competitors.

Beyond headline figures, both companies emphasised regional development. Samsung said it will build AI data centres in South Jeolla Province and Gumi to support growth outside the Seoul metropolitan area. Hyundai highlighted investments in manufacturing upgrades and new EV‑dedicated facilities, and broke ground on a hydrogen fuel cell plant in Ulsan in October.

The combined programmes reflect a broader push to strengthen South Korea’s role as a global mobility and semiconductor hub while navigating tariff uncertainty and redirecting supply chains for AI‑driven demand.

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