April 26, 2024

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[THE INVESTOR] Hyundai Motor has rejoined the American Chamber of Commerce in Korea after a nine-year-hiatus, in an effort seen to boost communication channels with the US under the new Trump administration.

“Hyundai Motor decided to join AmCham, which serves as a bridge between the US and Korean economy, at the end of last year,” a Hyundai Motor official said. “The US, as Hyundai’s largest trading country, is a very important market. Hyundai Motor is actively engaging business in the country, operating a factory and a research center in the US.”

 

Hyundai Motor Group Chairman Chung Mong-koo visiting the carmaker's Alabama plant.

The last time Hyundai Motor was a member company of the largest foreign chamber in Korea was in 2008, when the two countries were negotiating terms of the US-Korea Free Trade Agreement.

The fresh membership is seen to appease the new US President Donald Trump, who has been pursuing strong protectionist trade policies, industry watchers say. Trump has been urging global automakers to expand their businesses in the US, threatening to impose hefty tariffs on cars imported from overseas plants, especially in Mexico.

Ahead of Trump’s inauguration in January, Hyundai Motor Group -- which includes Hyundai Motor and Kia Motors -- announced it will invest US$.3.1 billion in the US over the next five-year period, joining global auto giants that have announced large investment plans.

Hyundai Motor Group is also mulling plans to build another auto plant in the US, in addition to its Alabama and Georgia facilities.

Even Kia Motors is alarmed as it opened a US$3 billion manufacturing facility in Mexico last year, with plans to import cars to the US.

AmCham Korea was established in 1953 to expand investment and trade between South Korea and the US. It has more than 700 member companies, including both Korean, US and other multinational firms.

AmCham Korea Chairman James Kim, who heads GM Korea, on Feb. 1 confirmed Hyundai Motor’s membership during a press conference held in Seoul and asked more Korean companies to join AmCham Korea to deliver mutual economic development for the both countries.

By Ahn Sung-mi (sahn@heraldcorp.com)