[News Today] KOREAN COMPANIES BRACE FOR TRUMP

[LEAD]
The incoming Trump administration's push for higher tariffs is deepening industry concerns. South Korea's vital automotive sector faces direct impacts. In response, the industry is considering increasing local U.S. investments as a strategic countermeasure.

[REPORT]
Hyundai Steel supplies automotive steel plates to Hyundai Motor Company and Kia Motors.

Korea's premier steel maker is reportedly examining a plan to build its first large-scale steel mill in the United States.

The idea is to do everything, from producing molten iron and steel plates to supplying them to local automobile plants, inside the United States.

The company is discussing this idea with number of key American state governments but the southern states, where Hyundai and Kia plants are located, is cited as the most likely destination.

Hyundai and Kia's combined production in the U.S. amounts to as many as 1.2 million vehicles per year. So, Hyundai Steel's investment is expected to match the scale of local production.

Hyundai Steel's latest plan is a proactive measure on the incoming Trump administration.

Cho Chuel / Korea Institute for Industrial Economics & Trade
The most important thing for Trump is how many cars, jobs are created locally.
It's not easy to build more automobile plants, so Hyundai is looking to increase investment in steel.

The greatest challenges for the Korean automobile industry is President-elect Trump's pledges to reduce or remove green car subsidies and boost tariffs.

Steel is also an item that experienced a higher tariff since the first Trump administration.

Steel industry insider / (VOICE MODIFIED)
Trump had designated a steel quota. There's a concern that the conditions would worsen or negotiations go against us.

Hyundai Motor Group emphasized crisis response at a recent New Year's event.

Chang Jae-hoon/ Vice chair, Hyundai Motor Group (Jan. 6)
(Have you had contact with the Trump administration?) Not yet. Instead, we decided to prepare various market responses internally.

Hyundai Steel said nothing has been decided on the construction of a steelworks inside the U.S., but the industry expects Korean companies to make increasingly more investments in the U.S. while Trump is in office.