Korean high-tech companies have pledged to invest more than $100 billion in the United States in the past two years

According to the Daily Business News of Korea, South Korea's large technology companies are flocking to the United States for investment. In the past two years, they have committed more than 100 billion U.S. dollars in investment in the United States.

The report pointed out that their huge spending was mainly stimulated by the United States' turn to protectionism. The Biden administration's huge tax credits for high-tech industries such as semiconductors, electric vehicles and rechargeable batteries are becoming the key to investment by South Korean companies.

The Korean Economic Daily pointed out on February 5 that based on announcements issued between 2021 and January this year, household names such as Samsung Electronics, Hyundai Motor Group, LG, Hanwha and CJ have committed to investing a total of 103.2 billion US dollars to build factories in the United States. Or buy a stake in a US company. Among them, there were 27 direct investment plans or factory construction projects, with a total amount of 84.1 billion US dollars, and the total purchase of US company stocks was estimated to exceed 20 billion US dollars.

The rise of South Korean conglomerates' relocation to the U.S. comes as Washington resolves to revive manufacturing and create jobs, or America First policies.

"Caught in the middle of Sino-U.S. tensions and U.S.-first policies, Samsung and SK Hynix have had to build semiconductor factories in the U.S.," a South Korean company official said. “Electric vehicle factories are moving to the US. Producers of rechargeable batteries and battery materials are following suit.”

Last July, SK Group disclosed a US$22 billion US investment plan during a visit to the White House. The figure does not include the group's previously announced spending plan of $7 billion.

Samsung has allocated $17 billion to build a foundry in Tyler, Texas.

Hyundai Motor Group is spending $10.5 billion to build electric vehicle factories in Georgia and other U.S. states.

Some business executives said that increasing US investment is not a matter of choice, but a matter of survival.