Expansion of US investment Soaring foreign currency debts of seven chaebols A vicious cycle of exchange rates

Financial News reported on the 8th that the foreign currency debts of seven battery and petrochemical companies, which are expanding investment in new years and new years of domestic conglomerates, “increased by 1.58 trillion won in the first half of this year,” Financial News reported on the 8th.
The surge in foreign currency debt increased by 24.5% from 3.41 trillion won at the end of last year to 4.249.3 trillion won in June this year by LG Energy Solutions, which invested in a battery factory dedicated to Honda in the United States.
Samsung SDI's foreign currency short-term borrowings, which are expanding investment in the US, increased by 15.7% from 835.7 billion won to 967.4 billion won in six months.
LG Chem's foreign currency debt in the first half of this year stood at 3.85 trillion won, up 24.2 percent from 3.1 trillion won at the end of last year, and Hanwha Solutions' short-term foreign currency borrowings surged 24 percent from 730.6 billion won at the end of last year to 906.1 billion won in the first half of last year.
According to the Ministry of Industry's report on foreign direct investment attraction, the amount of foreign direct investment attraction (based on reporting) in the first half of this year was $11.09 billion, down 15.6% from the previous year. increased % to $25.4 billion.
The rapid rise in short-term foreign currency debts of chaebols has become a link from a sharp drop in the value of the won to an increase in US foreign currency investment, which increases the debt burden and further undervalues ​​the exchange rate.
The Korea-US summit joint statement (May) said, “The two leaders will use this comparative advantage to protect key and emerging technologies, including advanced semiconductors, eco-friendly electric vehicle batteries, artificial intelligence, quantum technology, biotechnology, bio-manufacturing, and autonomous robots. “To this end, the two leaders agreed to cooperate to promote partnerships related to such core and emerging technologies between the two countries through investment promotion and R&D cooperation,” he said.

This ensured the expansion of investment by the Korean conglomerates in the US.