South Korean companies are reportedly accelerating investments and acquisitions in U.S. firms, fueled by a boom in artificial intelligence (AI).
The Financial Times (FT) reported on July 24 that South Korean companies, bolstered by increased cash reserves from the AI surge, are actively pursuing investments and acquisitions in the U.S. to secure advanced technologies and avoid tariff burdens imposed by the Trump administration.
According to data from South Korea's Ministry of Economy and Finance cited by FT, direct investment by South Korean companies in the U.S. reached $10.2 billion in the first quarter of this year, more than double the amount from the same period last year. This marks the largest investment in five years. Last year's total direct investment in the U.S. also increased by about 15% to $25.7 billion.
Sushil Bhatia, head of M&A for Goldman Sachs in the Asia-Pacific region (excluding Japan), stated, "AI is fundamentally changing the way M&A transactions are conducted globally. If the U.S. is the center of innovation, then South Korea is at the heart of that in Asia." He added, "South Korea is well-positioned to invest in suitable companies across the supply chain, backed by abundant capital."
This investment surge is led by Samsung Electronics and SK Hynix, which are considered the biggest beneficiaries of AI infrastructure development. The stock prices of both companies have more than tripled over the past year, and their combined operating profit is expected to reach a record $400 billion this year.
Last month, Samsung participated in a $100 million investment in AI data center cooling technology firm Jutacore. In the previous year, it also invested $750 million in AI semiconductor startup Groq.
SK Hynix announced plans in January to invest $10 billion in U.S. innovative companies and collaborate with them. Last year, it participated in a $120 million investment in U.S. startup Abecena, which develops optical connection technology to enhance energy efficiency in AI systems.
South Korean companies are also continuing to acquire U.S. tech firms. Samsung agreed to acquire the U.S. healthcare platform Xealth last year, while Doosan Robotics acquired an 89.6% stake in U.S. automation firm ONExia in Pennsylvania in 2025.
Investment activities are not limited to semiconductors. Financial industry insiders report that South Korean companies in shipbuilding, robotics, biotech, and advanced manufacturing are also considering acquisitions of local firms to address geopolitical risks and enter the U.S. market.
Jang Tae-won, co-head of North Asia M&A at JP Morgan, noted, "Just a few years ago, cash-rich Chinese companies were aggressively acquiring Western assets at a premium. However, as U.S.-China relations have changed, Chinese firms are now effectively excluded from acquiring major U.S. assets."
He added, "Now is the golden era for South Korean companies in U.S. M&A, driven by strong cash flow, the need for supply chain reshoring, and demands for market access, prompting them to pursue larger and transformative deals."
* This article has been translated by AI.
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