Washington: Chey Tae-won, chairman of SK Group and head of the Korea Chamber of Commerce and Industry (KCCI), has indicated that the conglomerate might consider expanding its investments in the United States, contingent upon incentives provided by the new Donald Trump administration. Chey’s comments were made during a meeting with reporters at a forum hosted by the Chey Institute for Advanced Studies, a think tank linked to SK Group, in Washington on Friday.
According to Yonhap News Agency, Chey expressed that while the Trump administration desires more production facilities within the United States, incentives would be necessary to realize such investments. He noted that although the administration has mentioned tax reductions, specific details have yet to emerge, necessitating close monitoring of the situation. Chey emphasized that any future investment plans would hinge on the concrete incentives offered.
Chey elaborated that potential incentives need not be purely financial. He stressed the importance of South Korea and the United States collaborating for mutual gains. Addressing the issue of high labor costs in the U.S. that could deter investment, Chey mentioned that discussions on this topic have not progressed significantly. However, he pointed out that investment attractiveness varies by industry, suggesting that the current climate may be more favorable for the artificial intelligence sector compared to other countries.
The remarks follow a significant investment trend by South Korean companies, including SK Group, which collectively invested $160 billion in the United States over the past eight years covering the first Trump administration and the Biden administration. Chey also mentioned that SK Group is awaiting the Trump administration’s review of potential changes to subsidies under the Inflation Reduction Act, enacted during the Biden administration. He noted that announcements regarding these changes are expected by April.