Myeong-seok Chae, Gounee Yang

Global Economic News

SOUTH KOREAN companies in the U.S. market are carefully responding to the U.S. Government’s legislation, regulations, and export control. In addition, as companies are required to consider environmental, labor, and human rights factors as well as economic factor for their U.S. business, South Korean companies are opening offices in Washington to expand investment in the country.

SK Inc., the investment company of SK Group, will establish an investment corporation in the United States. SK Group is also planning to invest US$52 billion in the United States by 2030.

According to the business community, SK Inc. has formed a task force to establish the U.S. investment subsidiary earlier this year. The industry predicts that SK Group will speed up its U.S. businesses through this subsidiary.

Last year, SK Group chairman Chey Tae-won emphasized SK’s vision of “Global Story” and said it is necessary to build a “win-win business” model that can cooperate with local and global stakeholders.

LG Group will open the first U.S. office in Washington this year to respond quickly and efficiently to changes of the international situation. So far, LG did not operate Washington office unlike three other South Korean major groups. LG appointed Joe Hagin, who served as a deputy secretary of the White House during the Trump administration, as a co-chief director of the office.

Samsung Electronics has confirmed the establishment of new chip foundry in Taylor, Texas, and is set to begin construction within the first half of this year. As it has invested a total of US$17 billion to complete the construction by 2024, the negotiations with the U.S. Government are important for additional investments and establishment of the second foundry.