[‘MAGA’ 파트너로 기업들이 뛴다] 〈Upper〉 The entire state is shaken by the arrival of ‘K Company’
16 trillion won invested, Hyundai Motor Georgia plant creates 37,000 direct and indirect jobs
Residents: “It will have a huge ripple effect on the economy when it is fully operational.” State Minister of Economy: “Don’t worry about U.S. priorities”
“A Korean company that chooses the U.S. state of Georgia becomes a ‘Georgian company.’ There is no need to worry about the ‘America First’ policy of the second term Donald Trump administration. “I hope that Korean companies operating in Georgia will be successful as ‘Georgia companies’ just like American companies.” (Georgia Economic Development Secretary Pat Wilson)
On December 17th last year, I visited the state of Georgia in the southeastern United States. Many large Korean companies, including Samsung, SK, Hyundai Motors, LG, POSCO, and CJ, are located in Georgia. It is considered a representative ‘K-industrial base’ in the United States, where more than 110 Korean companies have entered the market and are creating over 17,000 direct jobs.
In particular, in Georgia, Elabelle’s ‘Hyundai Motor Group Metaplant America (HMGMA)’ has been receiving a lot of attention recently. This is because HMGMA, a very large factory built over two and a half years, began operation last year. Hyundai Motor Group invested a total of $12.6 billion (approximately KRW 16.8 trillion) in HMGMA and a battery plant in Georgia.
There are high expectations for job creation as it is an automobile factory with a large employment effect in the local area. In addition, Hyundai Motor Company plans to significantly increase its market share in the United States by focusing on producing hybrid cars here. As a result, there are predictions that HMGMA will be a long-term ‘win-win’ project for foreign companies and the local community.
● The local economy boomed when K Factory was built.
On this day, as I entered the HMGMA site along the road named ‘Genesis Drive’ (named after Hyundai Motor Company’s brand Genesis), a long factory entrance road like a highway appeared. It was so large that it would take about 5 minutes to travel from end to end of the factory even if traveling at about 64 km/h.
The development enthusiasm generated by investment and employment by Korean companies was felt in other nearby areas, including Fuller. Apartment construction sites appeared one after another, and work was in full swing to extend the roads leading to Savannah Port, one of the three major ports in the eastern United States, from four lanes to six lanes. The roads covered with black, smooth new asphalt seemed to show the new economic blood of this area. Vivian, a local resident, said, “There are more than one apartment complex under construction right now,” adding, “The Hyundai Motors factory has started operation and is expected to hire 8,500 people in the future, so the population is expected to continue to increase, and construction companies are also investing in advance.” said.
James Lim, who works in the construction business in the Savannah area, said, “Recruitment (at the Hyundai Motors plant) is still in the beginning stages, but once the plant is in full swing and the partner companies that entered the market are fully operational, there will be a positive ripple effect on the entire local economy.” . He continued, “So, wouldn’t even President-elect Donald Trump say that he welcomes foreign companies even if he hates illegal immigrants?” In fact, Georgia has traditionally been a state with strong Republican support. President-elect Trump won last year’s US presidential election.
According to the state of Georgia, in addition to the 8,500 jobs that HMGMA will create directly, 6,900 new jobs will be created by more than 15 partner companies that are entering the market together. Some analyzes show that if indirect employment is included, the number of new jobs created can reach up to 37,000. Secretary Wilson said, “Georgia residents employed by Hyundai Motors will grow the local economy by paying off mortgages (with wages paid by Hyundai Motors), purchasing cars, and enjoying dining out.”
● Korea, investment in the U.S. and employment at record highs… Job quality is excellent
Recently, investments by Korean companies in the United States have increased to an all-time high. In 2023, the United States’ share of Korea’s overseas direct investment (ODI) reached 43.7%, or $27.7 billion. In particular, its contribution to job creation was significant. The number of Korean companies (including branches) investing in the United States was 2,184, an increase of 7.2% from 2020 (2,038), but the employment of local workers by companies entering the U.S. during this period nearly doubled, from 88,850 to 177,423. increased rapidly in number.
As many of the Korean companies entering the U.S. are related to key industries such as automobiles and semiconductors, the level of jobs they provide locally is high. According to the Korea International Trade Association, the average annual salary of foreign companies in the United States is around $87,000, but the average annual salary of workers employed by Korean companies is $104,000, about 20% higher.
There is also advice that once the second Trump administration is officially launched, Korean companies should emphasize ‘expanding high-quality investments in the United States’ to increase their trade negotiating power with the United States. Do Won-bin, a senior researcher at the Korea International Trade Association, said, “Once President-elect Trump takes office, pressure on trade, including the imposition of tariffs, will begin in earnest. We need to clearly outline the details of our investments in the U.S. and industrial contributions and use them as leverage in negotiations.”
Elabel, Fuller, Savannah = Correspondent Lim Woo-sun [email protected]
Reporter Jaehee Han [email protected]
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