SEOUL – In a strategic move to bolster domestic investment, Samsung Electronics, alongside other prominent South Korean companies, revealed new investment plans during a meeting with President Lee Jae Myung on Sunday. This initiative aims to address apprehensions that these corporations might prioritize U.S. investments due to a recent trade agreement.

The discussion with key business leaders came shortly after South Korea concluded a significant trade deal with the United States. Under this agreement, Seoul committed to investing $350 billion in U.S. industries to avoid the imposition of the Trump administration’s steepest tariffs.

Samsung, a dominant force in the global semiconductor market, announced plans to invest 450 trillion won (approximately $310 billion) over the next five years. This investment will focus on expanding its domestic operations, including the construction of an additional production line at its Pyeongtaek facility. This expansion aims to meet the increasing worldwide demand for semiconductors driven by advancements in artificial intelligence.

The proposed production line, expected to commence operations in 2028, is part of Samsung’s larger strategy to enhance production capabilities in response to the anticipated long-term demand for memory chips. Additionally, the company intends to establish AI data centers in South Jeolla Province and the city of Gumi. These centers are designed to support government initiatives aimed at narrowing the development gap between the Seoul metropolitan area and other regions.

Meanwhile, Hyundai Motor Group, the country’s leading automotive manufacturer, has unveiled plans to invest 125 trillion won (about $86.3 billion) from 2026 to 2030. This investment will focus on augmenting domestic research and development, as well as advancing technologies in artificial intelligence, robotics, and autonomous vehicles.

SK Group, another semiconductor powerhouse, and shipbuilders Hanwha Ocean and HD Hyundai also announced plans to increase their domestic investments. Both are central to South Korean commitments to boost the U.S. shipbuilding industry, a sector highlighted by President Donald Trump in negotiations with Seoul.

In his meeting with the companies’ chiefs, Lee credited the business sector for helping his government negotiate the trade deal with Washington but urged the companies to maintain strong domestic investments to ease concerns they might cut spending at home to invest more in America. He said his government is exploring various policy steps, including easing regulations, to help create a more favorable business environment for the companies.

SK Chair Chey Tae-won, whose group plans to invest at least 128 trillion won ($88.3 billion) domestically through 2028 with a focus on AI, said the finalization of trade talks with the United States eases uncertainties and paves way for bolder domestic investment.

The two governments on Friday released the details of the trade agreement, including $150 billion in South Korean investments in the U.S. shipbuilding sector and an additional $200 billion in other American industries, which Seoul says will be capped at $20 billion per year to prevent financial instability.

The United States agreed to reduce tariffs on South Korean cars and auto parts from 25% to 15%, and to apply tariffs on South Korean semiconductors on terms “no less favorable” than those granted to comparable competitors in the future.