Seoul [South Korea], May 17 (ANI/Global Economic): South Korea companies are also preparing related businesses as the ‘economic security’ has been selected as the main agenda at the Korea-U.S. summit in Seoul on the 21st.
President Yoon Suk-yeol said on the 16th that he will discuss ways to strengthen global supply chain cooperation through the India-Pacific Economic Framework (IPEF) with U.S. President Joe Biden.
Companies expect the Korea-U.S. summit to further strengthen supply chain and technology cooperation between the two countries in strategic industries such as semiconductors and batteries.
Some major companies are also reportedly reviewing their investment plan in the U.S. in line with President Biden’s visit.
According to the business community on the 16th, the “Korea-U.S. Business Round Table” where Korean and U.S. business officials meet will be held at a hotel in Seoul on the 21st.
At the meeting, U.S. Secretary of Commerce Gina Raimondo, Korean Trade Minister Lee Chang-yang, and some 10 companies, including SK, Samsung, Hyundai Motor, LG, Lotte, Hanwha, and OCI, will attend.
It has not been confirmed that President Biden will attend yet.
A business official said, “President Biden’s attendance will determine whether leaders of the groups will come.”It is expected that Korean and U.S. companies will discuss mutual business cooperation.
At the previous Korea-U.S. business round table held in the U.S. in May last year, Korean companies announced investment plans worth 44 trillion won.
This year, Companies will not announce large-scale investment plans like last year, but they are reportedly reviewing their investment plans in the U.S.
Samsung Electronics Vice Chairman Lee Jae-yong is expected to meet with President Biden.
President Biden plan to visit Samsung Electronics’ chip plant in Pyeongtaek during his visit to Korea, and Vice Chairman Lee is expected to guide him.
It is also expected that Samsung Electronics will confirm details for the construction of a foundry, worth 20 trillion won in Taylor, Texas.
Hyundai Motor Group is reportedly planning to announce the investment plan for electric vehicle (EV) production plant in the U.S.
Foreign media recently reported that Hyundai Motor will announce the construction of the EV plant worth $7 billion (about 9 trillion won) in Georgia during President Biden’s visit to Korea.
As President Biden has shown great interest in global companies’ U.S. investments, Hyundai Motor’s plan is analyzed to strengthen its relationship with the U.S. government.
However, an official from Hyundai Motor said, “We are negotiating the investment for EV plant with the U.S. government, but nothing has been decided yet.”When the investment is confirmed, President Biden may visit Hyundai Motor’s Namyang RD Center or Asan plant during his visit.
LG Energy Solution announced its investment plan worth 1.7 trillion won in Queen Creek, Arizona, to build a new cylindrical battery plant with an annual capacity of 11 gigawatt hours (GWh) in March. It aims to start mass-production in the second half of 2024, and will begin construction soon.
LG Energy Solution is already operating its own plant with an annual capacity of 5GWh and a joint venture (JV) plant with a 35GWh capacity established with GM in Ohio. It is also constructing the second JV plant with a 35GWh capacity in Tennessee and third plant with 50GWh in Michigan.
SK Hynix has already announced that it will invest more than 1 trillion won in the Western U.S. to build open innovation RD center. An official from SK Hynix said, “The project will start soon.”Lotte announced its entry into the bio business and recently acquired a plant of Bristol Myers Squibb (BMS), a U.S. biopharmaceutical firm in Syracuse, New York, for $160 million (about 200 billion won). Lotte plans to make additional investments in the plant.
Hanwha Solution’s Q Cell division (Hanwha Q Cell) is the No. 1 company in the U.S. solar module market, and plans to speed up its business in the U.S. market with Biden’s renewable energy support policies.
A business official said, “In line with the President Biden’s visit to Korea, companies are expected to expand current projects or advance the investment timing rather than announce new investment plans.” (ANI/Global Economic)