Author: admin

By Kimberley Kao and Jihye Lee

  South Korean technology stocks rose after the nation's largest conglomerates pledged billions of dollars in new domestic investments, in a push to shore up the country's manufacturing base as Seoul works to ease trade frictions with Washington. 

  Shares of Samsung rose more than 3% as of midday on Monday and SK Hynix rose 7%. LG Electronics traded 1.2% higher, HD Hyundai rose 5.6%, while Hyundai Motor edged 0.1% lower. Shares of Hanwha Group rose 2.0%. 

  The conglomerates' announcements come after South Korea struck a trade deal with the U.S. last month and committed to investing $350 billion in U.S. industries as part of the agreement. 

  Samsung Electronics unveiled the biggest investment plan, saying it and its affiliates will invest 450 trillion Korean won, equivalent to $310.66 billion, nationwide over the next five years. The plan includes spending on AI data centers, research and development, as well as a new chip production line in Pyeongtaek, scheduled to begin full-scale operations in 2028. 

  Hyundai Motor Group committed to investments of 125.2 trillion won over the same period, with funds allocated to robotics, autonomous driving and setting up dedicated electric-vehicle production facilities. 

  Hyundai Motor Group Chair Chung Euisun, speaking at a meeting with South Korean President Lee Jae Myung on Sunday, said the company is preparing for the impact of U.S. trade measures. 

  "We're well aware of the U.S. tariff rate of 15% and how this can lead to a drop in exports as well as weighing on domestic productivity," Chung said at the meeting. 

  "We plan to diversify export regions, expand exports from domestic plants, and--via a new EV-dedicated domestic plant--more than double vehicle exports by 2030," he said. 

  LG said it plans to invest around 100 trillion won over the next five years, with 60% directed toward technology development and expansion for the materials, components and equipment segments. 

  SK Group reiterated its earlier pledge to invest about 128 trillion won through 2028, noting a rise in demand for memory chips and rapid process upgrades driving up investment needs. 

  SK Group Chief Executive Chey Tae-won said SK's planned fab in Yongin will require roughly 500 trillion won over time, and that the pace of injecting capital will depend on market demand. 

  "It's difficult to estimate the exact scope for now... but what we can say is that our range of capability in investment is significantly large, and we plan on allocating closely aligned with demand trends," Chey said. 

  Write to Kimberley Kao at kimberley.kao@wsj.com and Jihye Lee at jihye.lee@wsj.com 

  (END) Dow Jones Newswires

  November 17, 2025 00:25 ET (05:25 GMT)
Copyright (c) 2025 Dow Jones & Company, Inc.