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South Korean companies flush with cash from the AI boom are making their biggest US investment push in years as they race to build up capabilities in the most advanced technology and avoid Donald Trump’s tariffs.
Foreign direct investment executed by South Korean groups in the US during the first quarter more than doubled year on year to $10.2bn, the highest in nearly five years, according to the finance ministry in Seoul. It rose nearly 15 per cent to $25.7bn for the whole of 2025.
The threat of higher American tariffs had pushed cash-rich South Korean exporters to expand production there, while the retreat of Chinese buyers amid an intensifying US-China rivalry had created a rare opening to snap up attractive assets in cutting-edge tech, said bankers.
Samsung Electronics and SK Hynix, two of the biggest winners from the AI infrastructure build-out, have been particularly acquisitive.
The chipmakers have seen their stock value more than triple in the past year and are expected to post combined record operating profits of about Won600tn ($400bn) this year. They have used the firepower to make strategic investments in US companies across the AI supply chain.
Samsung joined a $100mn funding round for AI data-centre cooling specialist ZutaCore last month and participated in a $750mn financing for AI chipmaker Groq last year. Outside the US, Samsung is in talks to invest in French AI start-up Mistral, the FT reported this week.
SK Hynix said in January it would put $10bn into “innovative companies in the US” and partner with them. It backed US start-up Avicena in a $120mn funding round last year, betting on optical interconnect technology designed to improve the energy efficiency of AI systems.
“AI is fundamentally changing M&A dealmaking around the world,” said Sushil Bathija, head of mergers and acquisitions at Goldman Sachs for Asia ex-Japan.
“The US has been the epicentre of that innovation and Korea, from an Asian perspective, is at the centre of that. They’ve got the capital, they’ve got access to the right companies along that chain.”
Other recent South Korean acquisitions of US technology assets include Samsung’s agreement to buy healthcare platform Xealth last year and Doosan Robotics’ purchase of an 89.6 per cent stake in Pennsylvania-based automation company ONExia in 2025.
Bankers said South Korean companies were facing far less competition than they would have before.
“Until just several years ago, cash-rich Chinese companies were active buyers of western assets, often at premium valuations. But they are now largely shut out from acquiring major assets in the US because of evolving US-Sino relations,” said Taewon Chang, co-head of north Asia M&A at JPMorgan.
“Korean companies are facing a golden time for US M&A. Strong cash flow and the need for supply-chain reshoring, as well as market access, are encouraging them to pursue larger, transformative deals.”
Even before this year, South Korea ranked among the US’s biggest investors. Samsung is building a $40bn semiconductor plant in Texas, while SK Hynix is investing about $4bn in advanced chip facilities in Indiana.
The buying extends beyond semiconductors. Companies in shipbuilding, robotics, biotech and other advanced manufacturing sectors were seeking local capabilities to hedge against geopolitical risks, bankers said.
Hyundai Motor’s acquisition of Boston Dynamics helped transform the carmaker into a major contender in robotics. Hanwha bought Philly Shipyard in 2024 as Washington sought to revive US shipbuilding, while SK Hynix completed its nearly $9bn purchase of Intel’s Nand flash memory business last year.
Bankers expect more deals in the second half as South Korean companies’ AI-driven earnings are set to rise further. Seoul has also agreed to invest $350bn in return for lower tariffs on South Korean exports under Trump’s “liberation day” regime.
David Sim, an M&A partner at Samil PwC, said many companies had little choice but to expand overseas as growth slowed at home.
“I would say most, if not all, of the top 30 corporate groups are actively reviewing potential targets in North America,” he said.
