Samsung Electronics logo [Reuters=Yonhap News File Photo]

South Korean companies, flush with cash from the artificial intelligence (AI) boom, are acquiring U.S. firms to circumvent tariffs expected under the Donald Trump administration, the Financial Times (FT) reported on the 24th (local time).

According to South Korea's Ministry of Economy and Finance, foreign direct investment (FDI) by Korean firms this year has more than doubled compared to the same period last year, reaching $10.2 billion (approximately 15 trillion won), the highest level in five years.

"AI is fundamentally changing the landscape of M&A deals globally," said Sushil Bhatia, vice president of Goldman Sachs' Asia M&A division. "The U.S. has been the birthplace of innovation, and in Asia, Korea is at the center of it."

This trend is being led by Samsung Electronics and SK Hynix, the biggest beneficiaries of AI infrastructure development. The combined operating profit of these two companies this year is expected to reach an all-time high of approximately $400 billion (about 600 trillion won).

Last month, Samsung Electronics participated in a $100 million (approximately 146 billion won) funding round for ZutaCore, an AI data center cooling technology firm, and last year, it invested in Groq, an AI semiconductor company, as part of a $750 million (approximately 1.1 trillion won) funding round.

In January of this year, SK Hynix announced that it would invest in and collaborate with "innovative U.S. companies" to the tune of $10 billion (approximately 14.6 trillion won). Last year, it also supported a $120 million (approximately 176 billion won) funding round for the U.S. startup Avicena.

Other recent acquisitions by Korean companies include the agreement to acquire healthcare platform Zhil (by Samsung Electronics) and the acquisition of Onexia (by Doosan Robotics) last year.

Financial industry insiders noted that beyond semiconductor companies, firms in the shipbuilding, robotics, biotech, and advanced manufacturing sectors are also striving to secure local capabilities in the U.S. through M&A to mitigate geopolitical risks.

"Just a few years ago, cash-rich Chinese companies were actively paying premiums to acquire Western assets," explained Tae-won Jang, co-head of North Asia M&A at JPMorgan. "However, that path is virtually blocked due to changes in U.S.-China relations."

He added, "Now is the golden age for South Korean companies' M&A in the U.S. Driven by strong cash flow, the need for supply chain reshoring, and the requirement to secure market access, they are pursuing larger and more transformative deals."