South Korean officials said they have flagged concerns about Hyundai Motor’s upcoming investment in the United States. The automaker plans to spend about $5 billion to build a new manufacturing plant that will produce electric vehicles and batteries for the American market.
The government’s warning comes as the company seeks federal and state approvals for land use and environmental compliance. Seoul’s Department of Economy and Trade says it is reviewing the project’s impact on local jobs, tax revenue, and supply‑chain security. “We need to be sure the deal meets all regulatory standards and benefits the community,” a spokesperson said.
Hyundai’s U.S. strategy, part of a broader push to increase EV production abroad, could create thousands of new jobs in the Midwest and help the automaker compete with rivals like Tesla and General Motors. Analysts say that a successful plant would strengthen South Korea’s trade ties with the United States and boost the country’s technology exports.
The South Korean government also noted that the investment could be affected by U.S. trade policy changes and the need for a stable labor and materials supply chain. Hyundai confirmed it is working with U.S. regulators and local authorities to address any concerns. “We are committed to creating a high‑quality facility that supports American communities and aligns with international standards,” the company said.
As the South Korean flag of scrutiny lifts, Hyundai’s leaders will need to reassure both governments and investors that the U.S. plant will meet environmental, labor, and economic expectations. The outlook for the project will depend on the speed and nature of approvals, the firm’s ability to secure a reliable supply chain, and the broader climate of U.S.–Korea trade relations.
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