Major South Korean manufacturers have announced significant new domestic investment commitments as the government seeks to balance expanding economic ties with the United States against fears of weakening local industry. The declarations came during a high-level meeting between President Lee Jae Myung and business leaders on Sunday, following the conclusion of a U.S. trade deal that includes South Korea’s pledge to invest $350 billion in U.S. strategic sectors.
President Lee urged companies to deepen their domestic footprint even as they pursue overseas opportunities. “There are concerns that domestic investment might shrink as U.S.-bound investments strengthen,” he told executives, calling on them to work closely with the government to ensure the massive U.S. investment package also supports South Korea’s long-term industrial competitiveness.
Samsung Electronics delivered the largest announcement of the day, revealing plans to add a new memory chip production line—known as the P5 plant—at its Pyeongtaek complex. The expansion forms part of the Samsung Group’s broader 450 trillion won (about $310.8 billion) domestic investment program over the next five years, aimed at meeting soaring global demand for chips driven by the AI boom.
Samsung Electronics Chairman Jay Y. Lee pledged that the company would continue to strengthen Korea’s industrial base. “Samsung will raise domestic investment, create quality jobs for young people and make even more efforts for a win-win with small and medium-sized, as well as venture companies,” he said.
The P5 plant, delayed since late 2023 amid a slowdown in smartphone and PC chip demand, is now being fast-tracked. Mass production is scheduled for 2028, with Samsung citing an expected long-term surge in demand for memory semiconductors used in AI and traditional server systems. Semiconductor prices have climbed sharply in recent months, and industry sources say Samsung has increased the price of some memory chips by up to 60% compared with September.
Other major firms also outlined their commitments. Hyundai Motor Group announced plans to invest 125.2 trillion won domestically between 2026 and 2030, while shipbuilders Hanwha Ocean and HD Hyundai detailed additional upcoming investments, reinforcing expectations of a broader industrial expansion cycle.
Samsung emphasized that it will also invest in new infrastructure to support its enlarged production capacity. “With the global AI era entering full scale, Samsung Electronics anticipates a mid- to long-term expansion in demand for memory semiconductors,” the company said in a statement. “In order to respond promptly to market changes, the company intends to secure production lines in advance.”
The coordinated announcements signal an effort by South Korea’s industrial leaders to reassure policymakers and the public that domestic competitiveness will not be sidelined, even as the nation deepens its strategic economic engagement with the United States.