Georgia governor assures Korean firms of state's invulnerability to U.S. election uncertainties

Industry

Published: 18 Jun. 2024, 15:21

Georgia governor assures Korean firms of state's invulnerability to U.S. election uncertainties

Georgia Gov. Brian Kemp, second from left, and Hyundai Motor CEO Chang Jae-hoon, third from left, make a toast at the "Georgia Night" event held at the Conrad Seoul in western Seoul on Monday evening. [HYUNDAI MOTOR]

[INTERVIEW]

The state of Georgia is the most stable investment destination for Korean companies amid growing uncertainties ahead of the U.S. presidential election, Gov. Brian Kemp says.

"In a time of uncertainty, Georgia is the one certain thing that companies will get a constant good business environment with — no ups and downs," Kemp said during an interview with the Korea JoongAng Daily at the Conrad Seoul in Yeouido, western Seoul, on Monday.

"Companies are looking for stability, and Georgia is a steady constant of a good business environment."

Kemp visited Korea for a one-week trip to meet heads of local companies like Hyundai Motor, SK On and LG Energy Solution — firms that have invested many billions of dollars in the state — for discussions on ongoing projects and expansion updates.

Georgia Gov. Brian Kemp, center, talks during an interview with the Korea JoongAng Daily at the "Georgia Night" event held at the Conrad Seoul in western Seoul on Monday. [HYUNDAI MOTOR]

Georgia has welcomed around 140 Korean companies to become the largest single national contingent of investors in the state, with about $23 billion in projects committed over the last decade. In 2023 alone, Korean companies made over $10 billion in investments in Georgia, creating some 12,605 new jobs.

"Hyundai Motor’s [EV plant] project is moving very very quickly ahead of schedule," Kemp said. "We try to support the company’s mission, [and] if that mission is EVs, we support them in doing that, and if it’s hybrids, we're going to support them."

The governor's remarks come in the wake of Hyundai Motor's recent announcement that it will also manufacture hybrid vehicles at its EV-dedicated factory in Georgia. The $5.5 billion plant is slated to start operations in October as the state’s largest manufacturing facility.

Kemp also hinted at the potential of Hyundai producing hydrogen-powered vehicles at the plant.

Georgia Gov. Brian Kemp, center, talks during an interview with the Korea JoongAng Daily at the "Georgia Night" event held at the Conrad Seoul in western Seoul on Monday. [HYUNDAI MOTOR]

"Hyundai has talked about creating green logistics, moving their products around with hydrogen," Kemp said, adding that during his trip, he got to ride in an Xcient, the world’s first mass-produced hydrogen-powered vehicle developed by Hyundai.

"This is almost like science fiction in the United States and Hyundai is doing it here in Korea, and that's what we wanted to see so that we can take that back," the governor said.

Kemp emphasized Georgia’s "No. 1 optimal conditions for businesses" with the wide acceptance of Korean culture, rich resources and infrastructure.

“Georgia has the third largest Korean population in the United States; we are a welcoming state," Kemp said. "And Korean culture in Georgia is very strong, making it a perfect place for companies looking for a new home in the United States."

The state has a robust work force with a population of 11 million, 1 million of which are foreign-born. While it's the second-most populated state after Florida in the Sun Belt region, it has the advantage of a younger work force with an average age of 36.

Georgia also lowered its corporate tax rate to 5.39 percent this year from 5.75 percent. The state also exempts taxes for companies that export products manufactured in Georgia to other states and overseas. Its labor costs also stay relatively low, with the state's minimum wage set at $7.25 per hour, around half that of California and Washington D.C.

"Georgia is a gateway to the U.S. market; we have the No. 1 site and logistics, considering the ports, interstates, rail networks, the Atlanta International Airport and a great work force," Kemp said. "We would add two new nuclear reactors and we're doing a lot of solar in Georgia so we have clean energy, which is what a lot of these companies are looking for."

The Hartsfield-Jackson Atlanta International Airport is one of the busiest in the world, situated within four hours of any U.S. state by flight. The port city of Savannah is the first stop for ships and vessels that pass through Panama.

Georgia Gov. Brian Kemp gives a speech at the "Georgia Night" event held at the Conrad Seoul in western Seoul on Monday. Around 140 executives from major Korean companies participated in the event. [HYUNDAI MOTOR]

Kemp held a "Georgia Night" event in western Seoul on Monday, inviting some 140 executives from companies that have invested in the state, with Hyundai Motor CEO Chang Jae-hoon, Kia CEO Song Ho-sung and LG Energy Solution CEO Kim Dong-myung among the attendees.

"Those companies knew from experience that Georgia was a good bet and we are thankful for every one of those jobs because it means opportunity for a Georgia family and their community, and we've moved forward in sheer prosperity," Kemp said in a speech at the event.

SK On is building a $5 billion battery plant jointly with Hyundai Motor in the state that is slated to start production in the second half of 2025. The battery-making firm is also operating two $2.6 billion battery plants in the city of Commerce.

LG Energy Solution is constructing a $4.3 billion battery cell plant with Hyundai Motor.

Korea's trade volume with the Georgia stood at $15.8 billion last year, around 10 percent of the state's total.

BY SARAH CHEA [chea.sarah@joongang.co.kr]