FT: South Korean Firms Flush with 'AI Boom' Cash Turning to US M&A

▲ Samsung Electronics logo

South Korean companies, armed with massive cash reserves generated by the artificial intelligence boom, are acquiring U.S. businesses to bypass tariffs under the Donald Trump administration, the Financial Times reported on the 24th.

According to South Korea's Ministry of Economy and Finance, outbound foreign direct investment (FDI) by South Korean firms more than doubled from the same period last year to reach 10.2 billion dollars—approximately 15 trillion won—marking a five-year high.

Sushil Bhatia, head of Asia M&A at Goldman Sachs, said, "AI is fundamentally reshaping the pattern of global M&A deals," adding, "The U.S. has been the cradle of innovation, and in Asia, South Korea is at the center of it."

This trend is being led by Samsung Electronics and SK Hynix, the biggest beneficiaries of AI infrastructure deployment.

The combined operating profits of these two companies this year are projected to reach an all-time high of about 400 billion dollars, or roughly 600 trillion won.

Last month, Samsung Electronics participated in a 100 million dollar (approx. 146 billion won) funding round for U.S. AI data center cooling technology company ZutaCore, following its participation in a 750 million dollar (approx. 1.1 trillion won) investment in AI semiconductor firm Groq last year.

In January of this year, SK Hynix announced plans to invest 10 billion dollars (approx. 14.6 trillion won) in and cooperate with "American innovative companies."

Last year, it also backed a 120 million dollar (approx. 1.76 trillion won) funding round for U.S. startup Avicena.

Other recent acquisition examples by South Korean companies include the agreed acquisition of healthcare platform Xealth by Samsung Electronics last year and Doosan Robotics' acquisition of OneAxa.

Financial industry insiders noted that South Korean firms in shipbuilding, robotics, biotech, and advanced manufacturing—not just semiconductor companies—are striving to secure local U.S. capabilities through M&A to avoid geopolitical risks.

Chang Tae-won, co-head of North Asia M&A at JPMorgan, explained, "Years ago, cash-rich Chinese companies aggressively bought Western assets at a premium," adding, "However, that is virtually blocked now due to shifting U.S.-China relations."

He added, "This is a golden age for South Korean companies to pursue U.S. M&A," noting that "driven by strong cash flows, the need for supply chain reshoring, and the demand to secure market access, they are pursuing larger and more transformational deals."

(Photo: Getty Images)

※