South Korea President's Office: Musk regards South Korea as the number one investment object

Nov 24,2022
According to Digitimes, according to the office of South Korean President Yin Xiyue, Elon Musk, CEO of Tesla, said that he believed South Korea was the first choice for investment.

According to Yin Xiyue's office, the speech came from a virtual meeting between Musk and Yin Xiyue. Musk said that he would make any investment decision after a comprehensive review of the investment conditions, including human resources and technology.

Yin Xiyue also listened to Musk's plan to build another super factory in Asia to produce electric vehicles. Tesla's main plant in Asia is located in Shanghai, China - its capacity has recently doubled to about 1 million cars a year.

According to Yin Xiyue's office, Musk also expressed his willingness to actively invest in South Korea's electric vehicle charging infrastructure and significantly expand supply chain cooperation with South Korean enterprises. Yin Xiyue's office said that Musk predicted that by 2023, the number of parts purchased from South Korean companies would increase to at least $10 billion.

Tesla representatives did not immediately respond to emails seeking comment.

Tesla has purchased many Korean made auto parts, including long-term battery supplier LG Energy Solution Ltd. In fact, Jeon Hyeyoung, an analyst with Seoul Daol Investment&Securities Co., said last month that LG Energy's outlook was optimistic, partly because of the increased output of Tesla's Shanghai factory.

LG Energy said in June that it would spend $452 million to build a new 4680 battery production line. Tesla touted the next generation of batteries as the key to unlocking cheaper and more popular electric vehicles.

South Korea is also home to Hyundai Motor Co. and Kia, the world's two largest car manufacturers, and other battery manufacturers, such as SK On Co. and Samsung SDI Co. It is the main growth engine of its economy and believes that its high-tech supply network with the United States is crucial.

In August, the Biden government signed the Inflation Reduction Act, which excludes tax incentives for electric vehicles assembled abroad. As a result, South Korea US relations are strained.

In addition to China, where Tesla has a lot of business, South Korea is not the first country in the region to attract Musk.

Yin Xiyue also told Musk that the Korean government will actively improve the regulations that may cause difficulties for foreign investors to conduct business in South Korea.