Washington, Feb 23 Chey Tae-won, 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 U.S. 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, reports Yonhap news agency.
"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 about money but noted that South Korea and the U.S. need to work together for mutual benefits.
Regarding the high cost of labor in the U.S. 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 artificial intelligence (AI) sector to invest in the U.S. than other countries.
The remarks come after South Korean companies, including those under SK Group, invested a total of US$160 billion in the U.S. over the past eight years since the launch of the first Trump administration and through the Biden administration.
Chey said his group would also have to wait for the Trump administration's review of possible changes to subsidies given under the Inflation Reduction Act passed during the Biden administration.
"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 off Friday in Washington, Chey called for cooperation between South Korea, the U.S. 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 sector, energy, shipbuilding, shipping and nuclear energy, 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.
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