Hyundai Motor Group faces lasting US policy risks after midterms

Hyundai Motor Group's substantial investments in the United States may leave the company with diminished influence in future trade negotiations, according to a trade expert. Despite the outcome of the recent U.S. midterm elections, Washington's efforts to bolster domestic manufacturing are anticipated to persist, a statement from Shin Won-kyu, the head of the global economic research team at the Federation of Korean Industries (FKI), revealed in an interview on Wednesday.

As Hyundai's factories and supply chains have become deeply entrenched in the U.S., the company faces heightened vulnerability to shifts in U.S. tariff and trade policies, particularly emphasizing the significant risk of weakened bargaining power following the investments, according to Shin in a written interview with The Korea Times.

The relocation of plants is challenging due to their established infrastructure, and tariff rates or calculation methods could alter with a single decree. Notably, Hyundai Motor Group is regarded as one of the most adversely affected corporations by the U.S. administration led by former President Donald Trump.