Chaebol trio of Samsung, Hyundai, Hanwha aligns with Seoul in united push on US tariffs

The Star

2 days ago

SEOUL: As South Korea and the United States reached an agreement on tariffs on Wednesday (July 30), attention is turning to the behind-the-scenes role of South Korea's top business tycoons, who acted as de facto special envoys in the critical final days of negotiations.
Samsung Electronics Chairman Lee Jae-yong, Hyundai Motor Group Executive Chair Chung Euisun, and Hanwha Group Vice Chairman Kim Dong-kwan all made high-profile visits to the US this week, lending their corporate firepower to support Seoul's diplomatic efforts to ease steep tariffs on Korean exports, especially in the auto, semiconductor and shipbuilding sectors.
ALSO READ: Trump says trade deal agreed with South Korea at 15% tariff rate
overnment officials confirmed that the trio actively engaged with key figures in the US administration to underline Korea's commitment to long-term investment in the US, bolstering Seoul's credibility at the negotiation table.
'Private companies have significant networks in the US, and in this case, they helped communicate the importance of the negotiations from a business perspective,' said Kim Yong-beom, policy chief at Seoul's presidential office.
Hyundai's high-stakes auto diplomacy
Chung Euisun's visit follows Hyundai's US$21 billion investment pledge announced in March at the White House, which includes a steel plant in Louisiana and expanded EV production at its Georgia facility.
Despite the announcement being months old, the visit appears strategically timed to reinforce Hyundai's local production narrative just days before Washington's tariff deadline.
'Hyundai will be producing steel in America and making its cars in America,' said US President Donald Trump in March.
'As a result, they will not have to pay any tariffs.'
Nevertheless, Hyundai and Kia have suffered under the 25 per cent tariff regime on imported autos since April. Chung's presence in the US, just ahead of the Friday deadline, aims to strengthen Korea's push for a more favourable deal — seeking a rate of 15 per cent, similar to Japan's negotiated outcome.
Samsung pushes chip diplomacy
Lee Jae-yong, who departed for the US on Monday, has taken a more indirect approach. Samsung is currently building a $37 billion foundry complex in Austin, Texas, one of the largest semiconductor investments on US soil. The tech giant also recently signed a $16.5 billion chip supply agreement with Tesla for vehicle semiconductors, adding momentum to the bilateral high-tech partnership.
Although Lee's trip lacked public fanfare, officials say his presence sent a strong signal about South Korea's long-term alignment with US priorities in chip manufacturing and supply chain security.
Hanwha anchors shipbuilding strategy
Kim Dong-kwan, the youngest of the three tycoons, has emerged as a key figure in leveraging South Korea's shipbuilding capacity to offset tariff pressure.
Hanwha Ocean's acquisition of Philly Shipyard in December, paired with proposals for additional investments, tech transfers, and local training programmes, forms the backbone of the South Korean government's 'Make American Shipbuilding Great Again (MASGA)' initiative, introduced during a meeting with US Commerce Secretary Howard Lutnick.
Hanwha's pitch reportedly includes the possibility of acquiring more US-based shipyards, aligning with Trump's domestic job creation agenda. Industry experts believe these moves could significantly strengthen Korea's case to lower the current 25 percent tariffs to below 15 percent.
'Acquiring shipyards and expanding local production demonstrates a sincere commitment to US economic interests,' said Kim De-jong, a business professor at Sejong University. 'Such gestures carry real weight in trade talks with the Trump administration.'
A coordinated push
All three chaebol leaders arrived in the US within days of each other, ahead of Friday's original tariff deadline, forming a powerful unofficial delegation alongside top Korean officials including Finance Minister Koo Yoon-cheol and Industry Minister Kim Jung-kwan.
Their presence formed a coordinated public-private front in South Korea's economic diplomacy.
The chaebol leaders' diplomatic interventions are being hailed by South Korean observers as a pivotal factor in tilting the talks in Seoul's favour — reasoning that in modern trade diplomacy, capital and credibility go hand in hand. - The Korea Herald/ANN