South Korean President Lee Jae-Myung met with Samsung Electronics Co. Chairman Lee Jae-yong on Thursday amid growing speculation that Seoul may leverage the expansion of domestic companies’ US investments as a bargaining chip in trade negotiations with Washington.
Their closed-door meeting took place shortly before Washington abruptly postponed high-level trade talks with Seoul, just hours ahead of the Korean delegation’s departure.
The sudden delay has fueled concerns that South Korea may miss the Aug. 1 deadline to avoid or reduce a 25% additional tariff announced by Washington earlier this month.
During the meeting, the two leaders were understood to discuss expanding investments in the US as a strategic move to sidestep the sweeping 25% tariffs.
“President Lee and Chairman Lee need to maintain friendly relations with the US government. They must have held constructive discussions,” said a senior executive of a South Korean business group.
According to officials from the ruling Democratic Party, their discussion included new investments in AI and deregulations for new businesses.
Samsung Electronics, South Korea’s most valuable company, has been already building a semiconductor facility and R&D center in Talyor, Texas with an investment of $37 billion.
However, it remains uncertain whether the new facility will be eligible for US subsidies under the Trump administration, while it seeks to secure a stable base of foundry customers in the country.
For an additional investment in the US, Samsung is expected to ramp up spending in the home appliance plant there, particularly its washing machine plant in Newberry, South Carolina, according to industry watchers.
Mexico serves as Samsung’s key manufacturing hub for home appliances. However, Samsung may find it more advantageous to boost production in the world’s largest economy in the long term as Mexico is facing an additional 25% tariff.
At the Sun Valley Conference held in Idaho this month, Lee was said to have held private meetings with the leaders of top US tech companies, including Google, Microsoft, Amazon Web Services and OpenAI.
According to sources familiar with the matter, Lee sought their advice on what South Korea might offer and gain in trade talks with the US.
Last week, Lee Jae-yong, chairman of Samsung Electronics Co., was acquitted of all criminal charges, including accounting fraud and stock manipulation, by the Supreme Court.
Since last week, President Lee has held one-on-one meetings with the chiefs of the country’s top five conglomerates such as Hyundai Motor Group, SK Group, LG Group and Hanwha Group.
Their discussions covered a range of topics, including investment in the US, global trade, regional economic revitalization, R&D spending and strategies to address economic and business challenges, Kang Yoo-jung, presidential spokeswoman, said last week.
Separate from the sweeping 25% tariffs unveiled by Trump, the US in April imposed levies of 25% on imported vehicles and automotive parts, along with 50% duties on steel and aluminum.
The duties have already taken a heavy toll on Samsung Electronics, Hyundai Motor Co. and LG Electronics Inc. The three companies reported double-digit falls in second-quarter operating profit.
By Yeonhee Kim
yhkim@hankyung.com
Jennifer Nicholson-Breen edited this article.
