Donald Trump’s victory in the U.S. presidential election on Nov. 6 has put major South Korean companies on high alert, forcing them to reassess their investment and production strategies. Trump has been pushing for cutting subsidies, raising tariffs, and promoting fossil fuel investments—policies that mark a dramatic shift from the current Biden administration.
Korean chipmakers and electric vehicle (EV) battery manufacturers are particularly on edge, as these companies made substantial investments in the U.S. in response to Washington’s subsidy programs. Samsung Electronics was promised subsidies worth $6.4 billion when its semiconductor plant in Taylor, Texas, starts operations in 2026. SK Hynix, which unveiled plans in April to build an artificial intelligence (AI) semiconductor plant in Indiana, is expected to receive $450 million in federal subsidies.
“Since these subsidies fall under the CHIPS Act, initially spearheaded by the Republican Party, there’s hope that it will likely remain intact,” said an industry insider. “But nothing is set in stone anymore.”
The Korean EV battery industry, led by LG Energy Solutions, SK On, and Samsung SDI, received over 2.65 trillion won in subsidies from the first quarter of last year to the third quarter of this year under the Inflation Reduction Act (IRA). The IRA, which aims to promote EVs and renewable energy, faces uncertainty under a second Trump administration. Annual subsidies set for Korean EV battery makers, initially expected to reach between 5 trillion and 10 trillion won, are now in question. The potential subsidy reductions, coupled with the temporary stagnation in EV demand, could deal a significant blow to these companies.
Trump’s proposal for a 10% universal baseline tariff on all imports poses risks for Korean automobile exports. Tariff hikes could undercut auto exports to North America, one of the few growth markets in a year of slowing global demand. The upcoming Trump administration’s fossil-fuel-friendly stance could adversely affect Korean renewable energy companies such as Hanwha Qcells, which specializes in solar power.
However, experts say a potential increase in U.S. oil and gas production could help stabilize global energy prices, offering relief in some areas.
“The Korean shipbuilding industry could benefit from an increase in U.S. fossil fuel investments,” said Cho Sang-hyun, head of the Institute for International Trade at the Korea International Trade Association (KITA). “If the U.S. exerts more pressure on China, Korea’s semiconductor sector might find unexpected advantages.”
