- Tennessee sees surge in South Korean investment, with projects promising thousands of jobs and billions in economic impact.
- Major expansions include Aluko Aluminum in Halls, Hyosung Hico in Memphis, SK On in Haywood County, and Korea Zinc’s $6.6 billion Middle Tennessee project.
- Strategic location, financial incentives, and cluster effects make Tennessee a key hub for manufacturing, technology, and international business.
Tennessee is experiencing a surge in foreign investment as South Korean companies expand operations across the state, promising hundreds of new jobs and billions of dollars in economic impact. The trend reflects the state’s growing reputation as a strategic hub for manufacturing, technology, and international business.
The Aluko Aluminum Group has announced plans to set up operations in an old Tupperware factory in Halls, Tennessee. In Memphis, Hyosung Hico revealed two major expansions that will increase its capacity to produce electrical transformers. Memphis Mayor Paul Young welcomed the news, saying, “This represents opportunity. 240 new jobs. $157 million being invested”.
Battery manufacturer SK On, despite recently ending its joint venture with Ford, continues to plan battery production in Haywood County, further underscoring South Korea’s sustained commitment to Tennessee. Meanwhile, Korea Zinc has announced a $6.6 billion investment in Middle Tennessee, which will create 740 new jobs in the region.
Experts highlight several factors that make Tennessee attractive to foreign investors. Dr. Chanyong Yoo, an international business professor at Austin Peay University, noted the state’s strategic location as a key advantage. “It’s surrounded by eight states, including Georgia and Alabama. There are manufacturing companies and vehicle assembly plants nearby, so suppliers and clients are located strategically within a few hours’ driving distance”, he explained. Dr. Yoo also pointed to financial incentives offered by the state as a significant draw for multinational companies looking to invest in the U.S.
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Governor Bill Lee’s October visit to Asia, during which he met with business leaders and potential investors, helped facilitate direct investment in Tennessee. Since 2019, South Korean companies have committed approximately $13 billion to projects in the state, making South Korea the largest direct foreign investor in Tennessee.
Dr. Yoo said the presence of multiple successful Korean companies is likely to have a reinforcing effect, attracting further investment. “I see a cluster effect, where a strong presence of Korean multinational companies operating successfully in Tennessee positively signals to other Korean companies considering investment in the U.S.”, he said.
Analysts say these developments will not only create thousands of jobs across multiple sectors but also strengthen Tennessee’s position as a hub for advanced manufacturing, technology, and international business. From automotive components to battery production and aluminum manufacturing, South Korean investments are expected to bring long-term economic growth, industry expertise, and global connections to the state.
With continued collaboration between state authorities, universities, and industry leaders, Tennessee appears poised to benefit from a growing wave of international investment, solidifying its reputation as a strategic and business-friendly destination in the United States.
