Synopsis
Chey Tae-won, chairman of SK Group and KCCI head, indicated that more US investments could be made if the Trump administration offers appropriate incentives. He emphasized the need for collaboration between South Korea and the US for mutual benefits.Key Takeaways
- Chey Tae-won is open to increased investments in the U.S..
- Suitable incentives from the Trump administration are necessary.
- Collaboration between South Korea and the U.S. is vital.
- Investing in the AI sector may be promising.
- Past investments totaled US$160 billion.
Washington, Feb 23 (NationPress) Chey Tae-won, the chairman of SK Group and head of the Korea Chamber of Commerce and Industry (KCCI), expressed that the conglomerate, which spans across chips to batteries, may consider boosting investments in the United States contingent upon suitable incentives from the new Donald Trump administration.
Chey made these comments while responding to inquiries regarding potential investment plans in the U.S. during a meeting with journalists at a forum organized by the Chey Institute for Advanced Studies, a think tank associated with SK Group, in Washington, as reported by Yonhap news agency.
"The Trump administration aims for increased production facilities in the United States, but we also require incentives," noted the KCCI head. "The United States has mentioned tax reductions, yet no specifics have emerged thus far. We must continue to monitor the situation."
"Once we have more information, we can incorporate it into our planning; however, nothing concrete is available yet," he added.
When queried about potential incentives, Chey remarked they wouldn't necessarily involve monetary aspects, emphasizing the need for collaboration between South Korea and the U.S. for mutual advantages.
Addressing concerns regarding the high labor costs in the U.S. that may deter investment, Chey mentioned that discussions on this issue have not progressed to that level.
He highlighted that circumstances vary by industry, suggesting that the current climate may favor investments in the artificial intelligence (AI) sector in the U.S. over other nations.
These statements follow substantial investments by South Korean firms, including those within SK Group, totaling US$160 billion in the U.S. over the past eight years, spanning from the first Trump administration to the current Biden administration.
Chey indicated that his group must await the Trump administration's review of potential alterations to subsidies established under the Inflation Reduction Act passed during the Biden administration.
"The new administration is currently appointing officials, and they plan to make an announcement by at least April, so let's remain patient," he stated.
During the two-day Trans-Pacific Dialogue that commenced on Friday in Washington, Chey advocated for collaboration among South Korea, the U.S., and Japan in the AI and energy sectors, describing it as a necessity rather than a choice, according to SK Group.
He proposed an industrial partnership among the three nations, asserting that they could generate greater synergy in the global market by joining forces, particularly in AI within the manufacturing sector, energy, shipbuilding, shipping, and nuclear energy.
Chey noted that competition for AI dominance would likely manifest within the manufacturing realm, despite the ongoing emphasis on the financial and services sectors, urging swift efforts to establish a cooperative strategy among the three nations, as per the group.
