A week after Donald Trump’s election victory, CJ Group held a groundbreaking ceremony on Nov. 13 for a 7,000-billion-won ($476 million) Asian food factory in South Dakota. The facility, set to become the largest of its kind in North America, is located in a Republican stronghold in the U.S. Midwest. A day before the event, South Dakota Governor Kristi Noem was nominated by President-elect Trump as Secretary of Homeland Security, a pivotal role in the upcoming administration. Business circles praised CJ’s efforts to forge “remarkable connections” with the Trump administration. Governor Noem, who attended the ceremony, described the project as “a game-changer for the state of South Dakota” and a symbol of “South Dakota’s partnership with Korea.”
As Trump’s second administration approaches, global corporations are rushing to invest in the U.S., aligning with his policies to prioritize domestic production under the “Make America Great Again” slogan. Trump has consistently urged companies to establish manufacturing bases in the U.S. and warned of significant penalties for noncompliance. Even Big Tech companies, previously critical of Trump, are now backing down by eliminating their diversity initiatives to align with the President-elect’s stance.
South Korean companies are announcing investment plans in the U.S. across various sectors, including electronics, automotive, batteries, steel, and food, either establishing their first production bases or expanding existing facilities. Hyundai Steel is building its first U.S. steel mill, SPC is setting up its first bakery factory, and LS Cable is constructing the largest subsea cable factory in the U.S.
Korean firms explain these investments as efforts to secure a foothold in the expanding U.S. market. However, they are also positioning themselves to respond to Trump’s policies and strengthen ties with the new administration. Trump has proposed universal tariffs of 10-20% on all imports and has indicated plans to cut subsidies under the Inflation Reduction Act (IRA) and the CHIPS Act.
SPC Group announced on Jan. 2 plans to invest $160 million to build its first U.S. bakery factory in Texas. Days later, Chairman Hur Young-in confirmed his attendance at Trump’s inauguration. Currently operating 200 stores in North America, the company aims to expand to 1,000 by 2030, with Trump’s second term seen as a critical period for growth.
Hyundai Steel plans to invest several trillion won in its first U.S. steel mill, with Louisiana as a likely location. This project aims to support Hyundai Motor’s efforts to boost U.S. car production while providing a much-needed lifeline to Trump’s administration amid the struggles of U.S. Steel. Meanwhile, LS Cable & System is set to break ground on the largest subsea cable factory in the U.S. in Virginia this April, with an investment of around $680 million.
Companies with U.S. production bases are considering expanding their product lines and output. The home appliance industry, which faced 50% safeguard tariffs on washing machines during Trump’s first term, is adjusting its strategies. LG Electronics is exploring expanding its Tennessee washing machine plant to include refrigerators and TVs. CEO Cho Joo-wan said at a local briefing in the U.S. on Jan. 8 that the company is preparing flexible “playbooks” to respond to various scenarios, including production site adjustments and swing production across multiple locations. Hyundai Motor also plans to increase annual production at its Georgia-based electric vehicle plant, Metaplant America (HMGMA), from 300,000 to 500,000 units by adding hybrid vehicle production.
