Trend Korean manufacturers are expanding overseas production and localisation

Summary

KIET observes Korean manufacturers in several industries shifting output abroad in response to tariffs and global competition. Appliance makers are strengthening overseas production and localisation in India, Brazil, Mexico and elsewhere, while restructuring or outsourcing low-profit sites. The institute expects this overseas expansion to shrink domestic appliance production and exports, as most capital spending by major firms is concentrated abroad. In batteries, Korean firms keep raising production capacity in North America, and growth continues even as dependence on overseas production rises. Automakers are changing production models toward battery electric and hybrid vehicles to cope with protectionism and local demand. Biohealth firms are also expanding local production in the United States amid regulatory and tariff uncertainty.