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| Clockwise from top left are Samsung Electronics Vice Chairman Kwon Oh-hyun; Hyundai Motor Vice Chairman Chung Eui-sun; SK Group Chairman Chey Tae-won; GM Korea CEO James Kim; Korea Federation of Small and Medium Business Chairman Park Sung-taek and LG Group Vice Chairman Koo Bon-joon. On the sidelines of the summit between President Moon Jae-in and U.S. President Donald Trump, the business leaders are scheduled to hold meetings with U.S. officials. / Yonhap |
By Kang Seung-woo
Fifty-two business leaders are set to defend the free trade agreement (FTA) between Korea and the United States as the bilateral deal's days seem to be numbered under U.S. President Donald Trump.
As Trump seems keen to kill the "horrible" agreement due to his nation's growing trade deficit with Seoul under the FTA, the Korean companies, beneficiaries of the trade deal, are stepping up efforts with massive investment plans to encourage the real estate mogul-turned-president to change his mind.
On the sidelines of the summit between President Moon Jae-in and Trump, Thursday, the business leaders are scheduled to hold meetings with U.S. officials. Samsung Electronics Vice Chairman Kwon Oh-hyun, Hyundai Motor Vice Chairman Chung Eui-sun and SK Group Chairman Chey Tae-won are among those who will attend the event.
"President Trump has publicly complained of the Korea-U.S. FTA since he took office in January," an official of the business industry said. "In addition, there are lingering volatile trade issues between the two nations, including massive tariffs, so we are placed in a situation where we need to propose something to help ease the U.S. government's trade pressure."
Hours before President Moon arrives in Washington, D.C., Wednesday, Samsung Electronics announced an agreement with the U.S state of South Carolina to build a new plant for home appliances in Newberry County.
According to Samsung, it will invest $380 million to create 950 full-time jobs there.
SK Group is expected to propose cooperation with U.S. partners in the energy sector in line with the Moon administration's focus on new renewable energy and LNG.
SK Innovation relocated its exploration and production business from Seoul to Houston in January, while SK E&S, another SK affiliate, has produced shale gas in Oklahoma with a plan to import 2.2 million tons a year of U.S.-originated LNG from 2019 to 2039.
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Against this backdrop, SK may announce another investment plan regarding the resource.
Hyundai Motor Group, the world's fifth-largest carmaker, announced in January a $3.1 billion investment plan for the U.S. over the next five years.
In addition, growing demand for its SUVs in the U.S. is raising further speculation that the group may unveil another investment plan pertaining to expanding its manufacturing facilities or building new ones.
LG Electronics signed a memorandum of understanding with the U.S. state of Tennessee to construct a $250 million washing machine plant in Clarksville, a project that will create at least 600 full-time jobs, and they could finalize the contract during Moon's visit. LG is also building its new $300 million North American headquarters in New Jersey.
Hanwha Techwin recently appointed Bernard Champoux, a former commander of the Eighth U.S. Army, to lead the company's department dealing with U.S.-related projects, raising expectations the company could enhance its ties with American partners.
The state-run organization is also trying to appeal to the Trump administration with its imports from the U.S.
The Korea Gas Corp. (KOGAS) announced Monday it will begin buying U.S. shale gas next month under a 2012 contract with Houston-based Cheniere Energy that will bring in 2.8 million tons of LNG annually for 20 years starting this year.
In addition, it is highly expected to import additional shale gas from the U.S. as its President Lee Seung-hoon will join the business delegation.
In February LG Electronics became the first Korean company to announce a U.S. investment under the Trump administration as it plans to construct a $250 million washing machine plant in Tennessee that will create at least 600 full-time jobs.
The U.S. trade deficit under the FTA with Korea has increased from $13.2 billion (14.9 trillion won) in 2011 to $27.7 billion in 2016. However, Seoul's trade surplus with the U.S. has been on a steady decline for the past 13 months amid the Korean government's efforts to reduce the imbalance, with it reaching $915 million in May.
