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Korean Air, Hyundai to expand investments in U.S. in line with Trump policies

Published: 26 Aug. 2025, 18:27 Updated: 26 Aug. 2025, 19:34

From left: Industry Minister Kim Jung-kwan, Hanjin Group Chairman Walter Cho, Boeing Commercial Airplanes President and CEO Stephanie Pope and U.S. Commerce Secretary Howard Lutnick pose for a photo after signing a memorandum of understanding to purchase 103 high-efficiency aircraft at Willard InterContinental Washington in Washington on Aug. 25. [YONHAP]

Korean Air and Hyundai Motor Group announced expanded investments in the United States during a Korus business roundtable in Washington on Monday, signaling their intent to align with the Trump administration’s trade policies by purchasing U.S. products and building factories while strengthening supply chains in the country.

President Lee Jae Myung attended the event alongside Korean Air Chairman Walter Cho and Hyundai Motor Group Executive Chair Euisun Chung.

“Even under Trump’s second term, Korean companies will continue to produce in the United States and purchase U.S. goods, contributing to the mutually balanced and sustainable trade Washington expects,” Lee said.

Korean Air signed memorandums of understanding with Boeing Company and GE Aerospace for a record $49.9 billion investment. The airline will purchase 103 aircraft from Boeing Company for $36.2 billion and 19 spare engines from GE Aerospace and CFM International for $690 million.

It also plans a $13 billion maintenance contract with GE Aerospace covering 28 aircraft over 20 years. The deliveries will proceed gradually through the late 2030s.

Korean Air framed the deal as a long-term investment strategy looking 15 years ahead, particularly as it integrates with Asiana Airlines. Industry observers note that major carriers are moving up their order schedules because deliveries can be delayed by external shocks such as the Covid-19 pandemic or supply chain issues at manufacturers.

The orders could also generate U.S. manufacturing jobs.

“This MOU is both a strategic choice to strengthen cooperation with the U.S. aviation industry and a cornerstone for closer Korea-U.S. relations,” a Korean Air spokesperson said. “We are working with other U.S. aerospace companies such as Pratt & Whitney and General Electric in various ways, not just Boeing Company.”

Hyundai Motor Group also increased its U.S. investment plan by $5 billion, on top of the $21 billion four-year commitment it announced in March. The additional investment aims to align with U.S. government policies, expand business opportunities and reinforce its competitiveness in future industries.

President Lee Jae Myung, left, greets U.S. business leaders at the Korus roundtable reception at the Willard InterContinental Washington in Washington on Aug. 25, introduced by Hyundai Motor Group Executive Chair Euisun Chung. [YONHAP]

The company highlighted steel, automobiles and robotics as its core investment areas. A new robot plant with a capacity for 30,000 units annually is included in the plan.

Hyundai Motor Group owns Boston Dynamics, based in Waltham, Massachusetts, which develops mobile robots. Until now, Boston Dynamics has handled research, development and limited production at its headquarters without a dedicated factory.

The new facility is expected to serve as Boston Dynamics’ first mass production plant, as Hyundai Motor Group will begin trial deployments of humanoid robot Atlas at its Metaplant America facility later this year.

“The new robot plant will serve as a U.S. hub for robotics production and as a center for the expanding robotics ecosystem,” Hyundai Motor Group said.

In steel and automobiles, Hyundai Motor Group aims to strengthen its supply chain.

The company is building a steel plant in Louisiana, scheduled for commercial operation in 2029. The facility will produce low-carbon, high-quality steel for U.S. industries, including the automotive sector, forming a value chain that runs from raw materials to parts and finished cars.

Hyundai Motor Group will also increase its U.S. auto production capacity. The company, which produced 700,000 vehicles in the country last year, plans to expand output to cover electric, hybrid and internal combustion models, offering more options tailored to U.S. consumer demand.

Affiliates in parts and logistics will expand facilities in the United States to raise localization rates and secure key electric vehicle components such as battery packs.

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 LEE SU-JEONG [[email protected]]