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South Korea’s industry minister expressed regret over Hyundai’s multi-billion dollar US investment announcement during delicate trade talks with Washington.South Korea‘s industry minister said on Monday that the government had expressed concerns over Hyundai announcing multi-billion dollar US investment plans at the same time as Seoul was involved in delicate trade negotiations with Washington.
“We told Hyundai that (its) conduct was deeply regrettable, especially considering that our efforts have been made for the sake of Hyundai and Kia’s industry,” South Korea’s Industry Minister Kim Jung-kwan told parliament in response to questions.
“I believe that Hyundai now fully understands the Korean public sentiment,” Kim said. He declined to comment on how Hyundai had responded to his concerns.
Hyundai did not immediately respond to a request for comment.
Independent lawmaker Kim Jong-min earlier criticised Hyundai for trying to gain favour with the Trump administrationthereby weakening South Korea’s leverage during the trade talks. The South Korean automaker announced last month it would raise its US investment plan by 32 per cent to $11.6 billion, only two weeks after its new electric car battery factory in Georgia was raided by US immigration authorities.
The raid led to the arrest of hundreds of workers and sent shockwaves across South Korea, which is a key US ally and a major investor in the country.
Seoul has also locked horns with Washington over $350 billion in US investments, as part of talks aimed at cutting tariffs on cars, South Korea’s key exports to the US
“Isn’t the Korea-US tariff negotiation essentially a negotiation concerning Hyundai?” the lawmaker said, adding: “Since Hyundai is the main player in this issue, I believe that the way Hyundai responded was not helpful to the negotiations.”
Hyundai Motor‘s parent group in March announced a $21 billion investment in the United States with President Donald Trump at the White House. Later that month, Trump unveiled a 25 per cent tariff on imported vehicles.
In August, Hyundai announced plans to increase the investment to $26 billion, following Trump’s summit with South Korean President Lee Jae Myung.
Two weeks after the raid, Hyundai Motor co-CEO Jose Munoz announced plans to produce more than 80 per cent of the vehicles it sells in the United States in the US by 2030 in response to US tariffs, as it ramps up its Georgia plant’s capacity.
