On November 16, South Korean President Lee Jae‑myung met with the leaders of the country’s major conglomerates to address concerns arising from the recent trade and tariff negotiations with the United States. According to the Chosun Daily, Lee noted that “people worry that investment in the US will be strengthened too much and domestic investment will decline” and urged companies to take “good steps so there will be no such worries.” With the agreement involving $150bn in US shipbuilding and $200bn in direct equity investment, totalling $350bn (around KRW509 trillion), Lee emphasised the need for businesses to continue supporting the domestic economy.

Unprecedented public-private mobilisation

Lee described the engagement as unprecedented: “I don’t think there has ever been a case where the government and corporations matched so well and responded jointly like this.” According to the Chosun Daily, the meeting at the Yongsan presidential office included Samsung Electronics Chairman Lee Jae‑yong, SK Group Chairman Chey Tae‑won, Hyundai Motor Group Chairman Chung Eui‑sun, LG Group Chairman Koo Kwang‑mo, HD Hyundai Chairman Chung Ki‑sun, Celltrion Chairman Seo Jung‑jin, Hanwha Group Vice Chairman Yeo Seung‑joo, and senior presidential aides and ministers who led the tariff negotiations.

The Korea‑US framework establishes $200bn in cash direct equity investment, with an annual cap of $20bn for at least 10 years, paid in stepwise installments according to milestones. The US will lead investment destination decisions based on “commercial reasonableness.” According to Chosun Daily reporting, concerns have been raised that large-scale capital outflows could weaken Korea’s domestic market.

In response, Lee urged corporations to prioritise domestic spending when conditions allow and stressed the importance of balanced regional development. “I again ask you to show more interest in revitalising industries in regions and localities,” he said. The president reassured business leaders that the government would minimise obstacles to corporate operations, signalling strong policy support for domestic activity.

Regulatory relief and government support

Lee also outlined measures for regulatory relief. Chosun Daily reports that he stated that tax cuts were not the preferred solution, adding, “If you have to do business while cutting taxes, that means there is a problem with international competitiveness.” Instead, he encouraged businesses to highlight areas where deregulation or relaxation could support investment. The government also floated purchasing subordinated bonds to bolster R&D and high-risk corporate projects.

Corporate investment pledges

The business community responded with ambitious domestic commitments. Samsung Electronics (005930.KS) / (ADR)(SSNLF) pledged to expand domestic investment, create jobs for young professionals, and strengthen partnerships with small and venture companies. Chairman Lee Jae‑yong emphasised that Samsung would continue plans to hire 60,000 people domestically over five years and pursue R&D and facility development, particularly in AI data centres outside the capital region Korea Times reports.

Hyundai Motor Group (005380.KS) / (ADR)(HYMTF) pledged KRW125.2 trillion for domestic investment from 2026 to 2030, representing a 40.5% increase over its average annual spending over the past five years. According to the company website, roughly KRW89 trillion will go to AI, robotics, autonomous driving and software-defined vehicles, with the remainder for R&D and facility expansion. Hyundai and Kia will build a 150,000-unit EV plant in Hwaseong and a 200,000-unit facility in Ulsan, expected to begin operations next year.

SK Group (096770.KS) announced plans for the largest domestic industrial investment in Korean history. According to Korea JoongAng Daily, the Yongin semiconductor cluster is projected to receive up to KRW600trillion, far exceeding the initial KRW128 trillion plan through 2028. SK intends to partner with Nvidia, Amazon Web Services, and Siemens to develop autonomous manufacturing systems and a network of regional AI data centres.

LG Group (373220.KS) committed KRW100 trillion for domestic investment, with 60% directed to materials, components, and equipment to strengthen the supply chain. According to Chosun Daily, Chairman Koo Kwang‑mo emphasised maintaining Korea’s industrial base to ensure innovation continuity despite external shocks.

Other companies are joining the wave. Celltrion (068270.KS), according to The Korea Economic Daily, plans KRW4 trillion across production sites in Incheon, Ochang, and Yesan over three years and will increase its R&D budget from KRW600bn to KRW1 trillion by 2027. It also acquired Eli Lilly’s New Jersey plant for KRW460bn, its first US manufacturing base as a hedge against potential tariffs.

Strategic motivations

The shift reflects a broader strategy to strengthen Korea as a hub for next-generation manufacturing. According to Chosun Daily, the focus is on reinforcing supply chains, advancing core technologies, and promoting regional economic development. Corporates are responding to rising global demand for AI computing, memory semiconductors, and advanced mobility technologies. For example, SK’s Yongin expansion aligns with surging requirements for high-bandwidth memory.

Execution will be critical. According to CIO Southeast Asia, SK’s projected annual job creation of 14,000 to 20,000 depends on construction timelines and market conditions. Capital deployment for advanced manufacturing must navigate global supply chain challenges, technology shifts, and workforce constraints.

The government’s role in enabling regulatory relief and timely approvals will also determine outcomes. According to Chosun Daily, President Lee’s promise of subordinated bond support and deregulation is designed to ensure corporate pledges translate into tangible domestic growth.

Success will be measured by several factors:

• Job creation: Realising tens of thousands of domestic positions annually.

• Regional investment: New facilities outside the capital to aid balanced development.

• Investment allocation: Funding directed to R&D, AI, robotics, and next-generation manufacturing.

• Regulatory follow-through: Effective policy implementation supporting corporate expansion.

• Domestic vs global balance: Managing home investment alongside the $350bn US commitment

The November 16 meeting marked a clear turning point. According to Korea Times, the South Korean government and its largest corporations have signalled a coordinated shift, prioritising domestic investment, industrial strength, and regional development while continuing global operations. If fully realised, these investments could reinforce Korea as a global centre for AI, robotics, semiconductors, and next-generation automotive technologies, ensuring sustained domestic economic growth amid international pressures.