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Financial Times
South Korea’s cash-rich winners of AI boom go on US buying spree
In light of the AI boom, South Korean companies are realizing a substantial increase in their investments in the US market, reflecting their financial strength and the need to expand their technological capabilities. Data from the South Korean finance ministry reveals a doubling of foreign direct investment in the US in Q1 to $10.2 billion, the highest in nearly five years. Major players like Samsung and SK Hynix are at the forefront of this trend, strategically acquiring companies within the AI supply chain to mitigate geopolitical risks and capitalize on growth opportunities These acquisitions mark a significant shift in the M&A landscape, where strong cash flow is enabling South Korean companies to be aggressive in securing assets that enhance their technological edge. As global competition intensifies, particularly with diminished Chinese competition due to regulatory constraints, South Korean firms are positioned for a golden era in US M&A activities. The broader implications suggest expanded capabilities in critical sectors like semiconductors, healthcare, and robotics, indicating a strong push towards reshoring and local production capabilities.
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Published 24 Jul 2026, 10:40 UTC3 min read
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Summary
TL;DR
- South Korea's US foreign direct investment doubled in Q1 2025 to $10.2bn.
- Samsung and SK Hynix are leading major acquisitions in the US AI sector.
- $350bn investment agreement may facilitate lower tariffs for South Korean exports.
- South Korean companies are expanding due to reduced competition from China.
- Acquisitions span multiple sectors beyond AI, including robotics and biotech.
Interesting facts
- Samsung and SK Hynix's stock values have tripled in the past year.
- The M&A landscape is transforming due to geopolitical factors and AI advancements.
- Korean firms face less competition for US tech assets due to US-China tensions.