Korean Firms Shift Outbound Investment Focus Amid Supply Chain Changes
Korean automakers and battery manufacturers are leading outbound investments, establishing significant supply chain footholds in the U.S., while semiconductor investments are still in nascent stages. The shift is driven by tariffs and the need for local production, creating a new investment model based on cluster dynamics.
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Korean automakers and battery producers are driving outbound investments, significantly impacting U.S. supply chains. Hyundai Motor Group exemplifies this trend with expansions in the U.S. and Europe, accompanied by rapid developments from battery firms like SK On and LG Energy Solution.
In contrast, semiconductor investments, such as Samsung's Texas project, remain at an early stage due to complex technology requirements and longer planning timelines. A critical factor influencing this shift is tariffs, which make localized production economically essential.
Chun notes that Korean firms prioritize infrastructure, workforce availability, and ecosystem density when selecting sites. Despite this growth, many firms still operate in silos, which could hinder their competitive edge as they expand internationally.
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