Lee Min-hyung joined The Korea Times in 2014 and has worked as a journalist mainly in Korea’s finance, tech and automotive industry. He specializes in content creation, breaking news and in-depth analysis currently on transportation and mobility. You can reach him via mhlee@koreatimes.co.kr.
SUMMIT Korean firms ready to invest $150 bil. in US: FKI chief
Samsung Electronics Executive Chairman Lee Jae-yong, center, introduces Nvidia CEO Jensen Huang, left, to Federation of Korean Industries Chairman Ryu Jin at the Willard InterContinental Washington, Monday (local time), on the sidelines of the Korea-U.S. Business Roundtable. Yonhap
By Lee Min-hyung
Korea, US sign 11 business contracts in five areas
Korean companies will make large-scale investment worth $150 billion (208.7 trillion won) in the United States to open a new era of “manufacturing renaissance” with the world’s largest economy, Federation of Korean Industries Chairman Ryu Jin said during the Korea-U.S. Business Roundtable in Washington, D.C., Monday (local time).
The event was organized on the sidelines of the summit between President Lee Jae Myung and his U.S. counterpart Donald Trump. Business leaders from both countries attended the roundtable to give a more concrete shape to the investment initiative.
“Our goal is to deepen the two countries’ partnership in a larger framework beyond the expansion of manufacturing facilities,” Ryu said. “We will open a new chapter of the manufacturing renaissance between Korea and the U.S.”
The investment announcement followed Korea's $350 billion commitment to U.S. investement under last month's tariff deal, which helped lower U.S. tariffs on Korean exports, including vehicles, from 25 percent to 15 percent.
Kim Yong-beom, the presidential chief of staff for policy, said the new $150 billion pledge is a form of foreign direct investment separate from the $350 billion commitment.
Federation of Korean Industries Chairman Ryu Jin, second from left, speaks during the Korea-U.S. Business Roundtable at the Willard InterContinental Washington, Monday (local time). Yonhap
Korea’s business delegation included heads of the top four conglomerates — Samsung Electronics Executive Chairman Lee Jae-yong, SK Group Chairman Chey Tae-won, Hyundai Motor Group Executive Chair Chung Euisun and LG Group Chairman Koo Kwang-mo.
A group of 21 businesspeople from the U.S. — such as Nvidia CEO Jensen Huang and Carlyle Group Chairman David Rubenstein — also joined the roundtable to elevate their business ties with Korean counterparts.
Both countries clinched a total of 11 new business contracts in five areas of shipbuilding, nuclear energy, aviation, critical minerals and liquefied natural gas (LNG).
HD Hyundai and the Korea Development Bank signed a memorandum of understanding (MOU) with Cerberus Capital from the U.S. to jointly establish a multi-billion-dollar investment fund for the U.S. shipbuilding industry.
Samsung Heavy Industries and Vigor Marine Group also agreed to strengthen their strategic ties for the U.S. Navy’s support ship maintenance, repair and overhaul (MRO).
The Korea Hydro & Nuclear Power (KHNP) forged a four-way partnership with Doosan Enerbility, X-energy and Amazon Web Services for design, construction and maintenance of small modular reactors.
The Korea Gas Corp. also signed a 10-year contract with Trafigura in LNG. Under the deal, Cheniere, the largest LNG exporter in the U.S., will supply 3.3 million tons of LNG each year to the Korean firm from 2028.
Korea Zinc, the world’s largest zinc smelter, signed an MOU with Lockheed Martin to supply refined germanium produced in all countries except China, North Korea, Iran and Russia. Under the agreement, the U.S. defense company will purchase the mineral through an offtake arrangement.
Korea’s trade ministry pledged to spare no efforts to level up the business ties between the two countries.
“The government will provide all the institutional support, so the Korea-U.S. manufacturing partnership will reach a renaissance and companies from both sides continue to create more business opportunities,” Minister of Trade, Industry and Energy Kim Jung-kwan said.