Seoul: With former U.S. President Donald Trump's successful reelection to the White House, South Korean industries with major investments in America may be expected to realign their U.S. business strategies amid an anticipated shift in Washington's economic and trade policies. Many within the South Korean business community forecast a second Trump administration to pursue strong protectionist trade policies centered on American interests, raising concerns over the future of existing trade agreements and subsidies.According to Yonhap News Agency, industries in South Korea are closely watching the possibility of Trump reducing or eliminating the CHIPS and Science Act and the Inflation Reduction Act (IRA), which focus on the advanced tech and clean energy sectors. Korea Ratings, a corporate ratings agency in Seoul, noted in a report that while fully repealing the CHIPS Act could be challenging, Trump may prioritize American companies, potentially reducing subsidies for allied nations. Under the CHIPS Act, Sout h Korea's Samsung Electronics Co. and SK hynix Inc. have secured significant grants from the U.S. for their investments.The potential reduction in subsidies could impact South Korean companies, with stricter conditions under guardrail provisions possibly increasing costs for facilities and operations. Battery makers, already facing global electric vehicle (EV) demand challenges, could also encounter setbacks from Trump's proposed policies. Trump has indicated plans to retract the IRA, which currently supports companies by providing advanced manufacturing production credits amidst the EV market slump in the U.S.Reducing the IRA and EV subsidies could hinder electric car adoption in the U.S., adversely affecting the profitability of South Korean battery firms such as LG Energy Solution Ltd. and SK On., which have invested heavily in America under the current administration. LG Energy Solution is actively developing several plants in North America, while SK On is building a joint plant in Georgia and other f acilities with Ford in Tennessee and Kentucky.The Korea Institute for Industrial Economics and Trade highlighted that a Trump administration could potentially withdraw from the Paris Climate Agreement, relax fuel efficiency regulations, and eliminate various EV-related requirements. Such actions could impact Hyundai Motor Group's aggressive expansion in the North American EV market, particularly following the opening of its new EV manufacturing plant in Georgia.An industry insider noted that the automotive sector is closely monitoring the U.S. presidential race, developing scenario-based strategies to mitigate potential risks and capitalize on opportunities. Meanwhile, the South Korean government has assured that bilateral economic cooperation with the U.S. will remain robust, with Trade Minister Cheong In-kyo emphasizing ongoing efforts to strengthen ties in advanced industries and supply chains.
- October 12, 2026
