Washington: Chey Tae-won, chairman of SK Group and head of the Korea Chamber of Commerce and Industry (KCCI), has announced that the conglomerate may consider further investments in the United States if incentives are offered by the new Donald Trump administration. Chey made these comments while speaking to reporters at a forum hosted by the Chey Institute for Advanced Studies in Washington.
According to Yonhap News Agency, Chey stated that although the Trump administration aims to increase production facilities in the U.S., incentives are necessary to encourage investment. While the administration has proposed tax reductions, Chey noted that no specific details have been provided yet. He emphasized the importance of South Korea and the U.S. working together for mutual benefits and clarified that incentives need not always be financial.
Chey acknowledged the high labor costs in the U.S. but mentioned that discussions on this issue have not progressed significantly. He highlighted that investment attractiveness varies by industry and suggested that the AI sector may currently find the U.S. a more favorable destination compared to other countries.
Over the past eight years, South Korean companies, including those under SK Group, have invested a total of $160 billion in the U.S. Chey indicated that his group is also awaiting the Trump administration's review of potential changes to subsidies outlined in the Inflation Reduction Act, which was enacted during the Biden administration.
During the Trans-Pacific Dialogue in Washington, Chey advocated for cooperation between South Korea, the U.S., and Japan in the AI and energy sectors. According to SK Group, he described this collaboration as essential and proposed an industrial partnership to enhance global market synergy, especially in AI, energy, shipbuilding, shipping, and nuclear energy.
Chey projected that the competition for AI leadership will likely emerge in the manufacturing sector and urged the three countries to quickly formulate a collaborative strategy, as reported by the group.