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Korea Inc. aims for U.S. 'manufacturing renaissance' with $150B investment

Published: 26 Aug. 2025, 19:02 Updated: 26 Aug. 2025, 19:16

Ryu Jin, chairman of the Federation of Korean Industries, right, delivers opening remarks at the “Korea-U.S. Business Roundtable: Manufacturing Renaissance Partnership” at the Willard Hotel in Washington on Aug. 25. [FEDERATION OF KOREAN INDUSTRIES]

Korean conglomerates accompanying President Lee Jae Myung to Washington for his summit with U.S. President Donald Trump as part of an economic delegation pledged Monday to invest a combined $150 billion in the United States.

The move is aimed at creating a “Korea-U.S. manufacturing renaissance” by merging U.S. innovation with Korea’s manufacturing competitiveness.

The Federation of Korean Industries (FKI) announced the plans at a Korea-U.S. business roundtable held in Washington, which President Lee's senior presidential secretary for policy, Kim Yong-beom, clarified in a briefing are foreign direct investments separate from the $350 billion fund unveiled earlier.

Explaining the initiative, FKI Chairman Ryu Jin said, “If Korea and the United States work together in advanced industries such as artificial intelligence, semiconductors and biotech, as well as strategic sectors like shipbuilding and nuclear power — extending to supply chains and talent development — we can usher in a new golden age of manufacturing.”

Korean Air unveiled its largest-ever single investment of $49.9 billion, which includes the purchase of 103 aircraft from Boeing and 19 spare engines from GE Aerospace. The move comes ahead of its planned merger with Asiana Airlines.

President Lee Jae Myung delivers a keynote speech at the Korea-U.S. business roundtable at the Willard Hotel in Washington on Aug. 25. [YONHAP]

Hyundai Motor Group added $5 billion to its previously announced four-year, $21 billion investment plan. The additional spending will go toward establishing a new U.S. robotics plant with a capacity of 30,000 units, building on the group’s ownership of Boston Dynamics.

Sixteen leading Korean executives took part in the roundtable, including Samsung Electronics Executive Chairman Lee Jae-yong, SK Chairman Chey Tae-won, Hyundai Motor Executive Chair Euisun Chung, LG Chairman Koo Kwang-mo, Lotte Vice Chairman Kim Sang-hyun, Hanwha Vice Chairman Kim Dong-kwan, HD Hyundai Vice Chairman Chung Ki-sun, GS Chairman Huh Tae-soo, Hanjin Chairman Walter Cho, CJ Chairman Lee Jae-hyun, LS Chairman Koo Ja-eun, Doosan Enerbility Chairman Park Gee-won, Celltrion Chairman Seo Jung-jin, Naver CEO Choi Soo-yeon and Korea Zinc Chairman Choi Yoon-bum.

GS Chairman Huh Tae-soo, second from left, and LS Chairman Koo Ja-eun, right, pose for a photo with Roger Martella, chief sustainability officer of GE Vernova, third from left, and Dhirendra Varma, chief strategy officer of Honeywell, far left, as they discuss cooperation at the Korea-U.S. business roundtable in Washington on Aug. 25. [GS]

On the U.S. side, Nvidia CEO Jensen Huang attended along with senior executives from Google, IBM, Boeing and other major companies.

The two sides signed 11 contracts and memorandums of understanding (MOU) in sectors including shipbuilding, nuclear power, aviation, liquefied natural gas and critical minerals. HD Hyundai, the Korea Development Bank and U.S. private equity firm Cerberus Capital Management agreed to establish a multibillion-dollar joint investment fund to help rebuild maritime capabilities for the United States and its allies.

Four nuclear-related MOUs were also signed, including a deal between Korea Hydro & Nuclear Power and Doosan Enerbility — operating as a unified entity — to collaborate with Amazon Web Services and X-energy on small modular reactors.

Samsung Electronics Chairman Lee Jae-yong, right, embraces Nvidia CEO Jensen Huang at the Korea-U.S. business roundtable at the Willard Hotel in Washington on Aug. 25. [YONHAP]

In the critical minerals sector, Korea Zinc signed an MOU with Lockheed Martin to supply germanium and strengthen supply chain cooperation. With China producing 68 percent of the world’s germanium, the agreement is seen as a step toward creating a “supply chain alliance” in key materials.

The economic delegation was composed of a select group of companies representing industries with strong potential for U.S. investment and bilateral cooperation. Observers expect the commitments to go beyond facility expansion, laying the groundwork for a new phase in economic partnership between the two countries.

“Korea’s leading industries face fierce competition with China, while the U.S. market remains vast,” said Jang Sang-sik, the head of trade trend analysis at the Korea International Trade Association. “It appears that Korean companies see mutual benefit in reviving manufacturing through joint Korea-U.S. initiatives.”

This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.
BY CHOI SUN-EUL [[email protected]]