Samsung Electronics Logo [Reuters = Yonhap News File Photo]

South Korean companies, flush with cash from the artificial intelligence (AI) boom, are acquiring U.S. businesses to circumvent potential tariffs 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) spending by Korean firms this year reached $10.2 billion (approximately 15 trillion won), more than double the figure from the same period last year, marking a five-year high.

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

This trend is being driven by Samsung Electronics and SK Hynix, the primary beneficiaries of AI infrastructure development. Combined operating profits for these two companies this year are projected to reach record highs of approximately $400 billion (about 600 trillion won).

Samsung Electronics participated in a $100 million (about 146 billion won) funding round for AI data center cooling technology firm Zutacore last month, and last year, it took part in a $750 million (about 1.1 trillion won) investment in AI semiconductor company Groq.

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

Other recent acquisitions by Korean companies include the agreed acquisition of healthcare platform Zelus (by Samsung Electronics) and the purchase of OneXiya (by Doosan Robotics) last year.

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

"Just a few years ago, cash-rich Chinese companies were aggressively buying Western assets at a premium," explained Jang Tae-won, co-head of North Asia M&A at JPMorgan. "However, that path is effectively blocked now due to changing U.S.-China relations."

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