Musk sees South Korea as a top investment candidate

SEOUL: Tesla Inc chief executive officer Elon Musk says he considers South Korea as a top candidate for investment, according to the office of president Yoon Suk Yeol.

The billionaire’s remarks came out of a virtual meeting Musk had with Yoon, according to Yoon’s office.

Musk said he would make any investment decision after a comprehensive review of investment conditions, including around manpower and technology.

Yoon also listened to Musk’s plan to construct another gigafactory in Asia to make electric cars.

Tesla’s main factory in Asia is in Shanghai in China – a facility that recently doubled production capacity to about one million vehicles a year.

Musk also expressed willingness to actively invest in electric vehicle (EV) charging infrastructure in South Korea, according to Yoon’s office, and significantly expand supply chain cooperation with South Korean companies.

Yoon’s office said Musk expects parts purchases from South Korean firms to grow to at least Us$10bil (Rm45.75bil) by 2023.

Tesla already buys many South Koreanmade automotive parts.

South Korea is home to two of the world’s biggest automakers, Hyundai Motor Co and Kia Corp, as well as battery makers such as LG Energy Solution Ltd.

The Asian nation sees EVS, rechargeable batteries and semiconductors as key growth drivers of its economy and considers its hightech supply networks with the United States essential.

Ties between South Korea and the United States came under strain in August when the Biden administration signed its “Inflation Reduction Act,” which rules out tax breaks for EVS assembled abroad.