Hyundai Motor Group announced on August 26, 2025, an increase in its US investment to $26 billion through 2028, up $5 billion from the $21 billion pledged in March. The investment, aimed at expanding auto, steel, and robotics production, underscores deepening economic ties between South Korea and the US. It includes a new steel mill in Louisiana with a 2.7 million-ton annual capacity, expanded auto production to meet US demand, and a robotics facility producing 30,000 units yearly, expected to create 25,000 jobs.
The announcement followed a summit between South Korean President Lee Jae Myung and US President Donald Trump in Washington, where they discussed a recent trade deal. Trump committed to purchasing Korean-built ships, and both leaders expressed optimism about cooperation on North Korea and security issues. The trade deal maintains a 15% tariff on Korean goods, avoiding a threatened 25% rate, with South Korea pledging $350 billion in US investments, including $150 billion for shipbuilding.
Other South Korean firms, like Korean Air Lines ($36.2 billion for Boeing jets) and Korea Gas (more LNG purchases), also announced US initiatives during Lee’s visit.Â
Read More – China’s Mega Dam Raises Concerns about Water Conflict with India
Hyundai, a US market player since 1986 with over $20.5 billion invested, aims to strengthen its role in the American supply chain amid easing trade tensions. However, Hyundai Motor shares fell 1.1%, mirroring a 1% drop in the Kospi Index.
