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KCCI chair says more U.S. investments depend on future incentives

Published: 24 Feb. 2025, 09:43 Updated: 24 Feb. 2025, 11:23

SK Group Chairman Chey Tae-won, center, speaks to reporters on the sidelines of the 2025 Trans-Pacific Dialogue hosted by the Chey Institute for Advanced Studies at a hotel in Washington on Feb. 21. [POOL/YONHAP]

Chey Tae-won, the chairman of SK Group who also serves as the head of the Korea Chamber of Commerce and Industry (KCCI), has said the chips-to-battery conglomerate could consider making more investments in the United States should there be incentives to do so under the new Donald Trump administration.

Chey made the remark when asked if his group had more investment plans in the United States while meeting with reporters on the sidelines of a forum hosted by the Chey Institute for Advanced Studies, a think tank affiliated with the SK Group, in Washington on Friday.

"The Trump administration says it wants more production facilities in the United States, but we also need to have incentives," said the KCCI chief. "[The United States] says it would lower taxes but there is nothing [specific] as of yet. So we need to keep watching."

"We can then reflect it in our planning, but nothing has come out yet."

When asked about what those incentives could be, Chey said it would not necessarily have to be money-related but noted that Korea and the United States need to work together for mutual benefit.

Regarding the high cost of labor in the United States that could make it a less attractive destination for investment, Chey said discussions have yet to advance to that stage.

But he said the situation is different by industry, noting that it may be a better time now for the AI sector to invest in the United States than other countries.

The remarks come after Korean companies, including those under SK Group, invested a total of $160 billion in the United States over the past eight years since the launch of the first Trump administration and through the Joe Biden administration.

Chey said his group would also have to wait for the Trump White House's review of possible changes to subsidies given under the Inflation Reduction Act passed under President Biden.

"The new administration is now appointing new people, and they say they will make an announcement by at least April, so let's wait," he said.

During the two-day Trans-Pacific Dialogue that kicked in Washington on Friday, Chey called for cooperation between Korea, the United States and Japan in the AI and energy sectors, describing it as a "necessity, not a choice," according to SK Group.

He proposed an industrial partnership between the three countries, saying they could create greater synergy in the global market if they join forces, especially for AI in the manufacturing, energy, shipbuilding, shipping and nuclear energy sectors, it said.

Chey said competition for AI leadership will likely unfold in the manufacturing sector despite the current focus on the financial and services sectors, calling for efforts to quickly devise a strategy for cooperation between the three countries, according to the group.

Meanwhile, Chey met with new U.S. Secretary of Commerce Howard Lutnick before his swearing-in ceremony on Friday, discussing ways to strengthen economic cooperation between the two countries and highlighting the scale of Korean investment in the United States.

As KCCI chief, Chey is leading an industrial delegation to Washington, where he is meeting with officials from the White House, the Department of the Treasury and Congress.

"We carefully prepared topics that would be of interest to the United States, and our discussions were well received," Chey said. "We worked closely to identify key issues worth addressing, and I believe they appreciated all the points we presented."

Yonhap