South Korea's $350 Billion U.S. Investment Faces Uncertainty, With Tariff Policy Holding Firm
Following the Nov. 3 U.S. midterm elections, Democrats secured majorities in both chambers of Congress, shifting the balance of political power. However, analysts say tariff policies affecting South Korean companies are unlikely to change significantly, as the executive branch retains authority to i
After the U.S. midterm elections on November 3, Democrats gained control of both chambers of Congress, retaining the ability to impose tariffs through Section 232 and Section 301 of the Trade Acts. Despite the shift in power, President Trump is projected to maintain his tariff and investment strategies. South Korea's $350 billion investment in the U.S. is now uncertain due to political changes and heightened congressional oversight.
The Encinal gas-fired power plant in Texas, a $2.4 billion commitment, may face delays if newly elected Governor Gina Hinojosa implements her campaign promise to pause approvals for new data centers. The investment portfolio includes $200 billion in strategic industries and $150 billion in shipbuilding. Construction of eight nuclear reactors in the U.S., valued at $120 billion, is also pending, with a $10 billion down payment expected by year-end.
Changes in permitting or construction timelines could impact financing and production costs. Semiconductor tax incentives, set to expire at year-end, remain a focal point as Texas faces new federal and state leadership in Gina Hinojosa's gubernatorial campaign. Samsung Electronics plans to start construction of its second foundry in Taylor, Texas, while SK hynix explores New York as a potential site for a NAND production facility.
If the tax credit lapses, projects post-December 31, 2026, will be ineligible. Both parties support expanding U.S. semiconductor production to lessen dependency on China, but tariff and policy challenges remain for South Korean firms like Samsung and SK hynix. Automotive and battery industries also scrutinize potential tariff and incentive changes under new state leadership.
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