South Korea's major corporate groups have significantly expanded their production assets in the US over the past eight years, overtaking China and Vietnam as the leading overseas manufacturing hub. Data from CEO Score, cited by CEO Score Daily and Newsis, shows the top ten conglomerates increased their combined overseas production assets from KRW209.2 trillion (US$146.27 billion) in 2016 to KRW490.7 trillion by the end of 2024.
Shift driven by protectionism and incentives
This 134.6% rise reflects a strategic relocation driven by increasing US protectionism and "America First" policies, which have incentivized South Korean firms to invest heavily in American manufacturing capabilities. The US, previously third behind China and Vietnam, now holds KRW157.7 trillion in production assets, compared to KRW116.6 trillion in China and KRW52.1 trillion in Vietnam. This marks a 627% increase in US-based assets since 2016.
South Korean conglomerates are redirecting investments away from traditional low-cost labor markets towards the US, partially due to aggressive foreign investment incentives introduced after US President Donald Trump first assumed office in 2017. Analysts note that this shift aligns with the US government's efforts to bolster domestic manufacturing, especially in strategic sectors.
Europe sees parallel battery expansion
In Europe, countries hosting major battery factories also reported rapid asset growth. Hungary, Poland, and Germany saw increases of 975.3%, 733.5%, and 780.7%, respectively, indicating a broader move to diversify production bases beyond Asia.
Samsung, SK, LG, and Hyundai lead US investments
Among individual companies, Samsung Group leads with KRW43.2 trillion (US$30.21 billion) in US production assets, followed by SK Group with KRW40 trillion (US$27.97 billion), LG Group with KRW38.8 trillion (US$27.13 billion), and Hyundai Motor Group with KRW28.4 trillion (US$19.86 billion). These four conglomerates control 95.4% of the US production assets held by South Korea's top ten groups. SK Group experienced the highest asset growth, jumping by about KRW39.6 trillion (US$27.69 billion)—a 9,162.9% increase—outpacing Samsung's gain of KRW37.8 trillion (US$26.43 billion).
Industry sectors such as batteries, semiconductors, and electric vehicles have driven this expansion, fueled by the growth of the US EV and AI markets. SK Group's investment surge stems from joint ventures and in-house battery manufacturing, while Samsung's asset growth is largely due to its semiconductor plant in Austin, Texas, and new battery ventures.
Consolidation intensifies among top players
Furthermore, the concentration of overseas production assets among the leading conglomerates has intensified. The top four groups accounted for 86.5% of the top ten's overseas assets in 2016, rising to 90.5% by 2024, reflecting further consolidation of resources within South Korea's largest corporate players.
Article edited by Jerry Chen
