Thanks to its pro-business climate and top-tier workforce, Texas has long been a magnet for international investment. Among its most significant partners is South Korea, whose investments have profoundly shaped the economic landscape of the Lone Star State. This partnership is not just a testament to the mutual benefits of foreign direct investment but also a celebration of the cultural and economic ties that bind these two regions.
The relationship between Texas and South Korea dates back several decades, with Korean immigrants first arriving in the early 20th century. However, it was after the Korean War that larger numbers of Koreans began to settle in Texas, contributing to the state's cultural diversity and economic growth. Today, Texas is home to a thriving Korean community, particularly in cities like Dallas, which boasts one of the largest Korean American populations in the South.
South Korean companies have made substantial investments in Texas, spanning various industries such as electronics, energy, financial services and telecommunications. These investments have not only created thousands of jobs but also contributed significantly to the state's economy.
One of the most notable examples is Samsung Austin Semiconductor, which has invested billions in its Austin facility. Since its establishment, Samsung has expanded its operations multiple times, with the latest investment totaling $17.5 billion. This expansion is expected to create over 2,000 new jobs, further solidifying Samsung's role as a major employer in the region.
Gov. Greg Abbott's 2024 tour of Samsung's semiconductor facility in Pyeongtaek, South Korea, underscores the importance of this relationship. In the first five months of 2024 alone, South Korean companies invested $27.5 billion in nine additional projects, expected to create more than 4,800 new jobs in Texas. This level of investment highlights the confidence that South Korean companies have in Texas's economic potential and their commitment to contributing to its growth.
But Samsung is hardly alone in Texas. SK hynix has invested heavily in the Lone Star state to enhance its semiconductor manufacturing capabilities. SK hynix's investments have created hundreds of jobs and contributed to the state's reputation as a hub for high-tech industries.
Hyundai Merchant Marine and DongAh USA are also significant contributors, with investments in logistics and manufacturing sectors. These companies have helped diversify Texas's economy, making it more resilient and competitive on the global stage.
South Korea’s CJ Group grabbed the spotlight of the golf world last weekend when it hosted the CJ Cup Byron Nelson PGA event at the TPC Craig Ranch in McKinney, Texas, for the second year. CJ Group, a global lifestyle company whose products and services range from bibigo dumplings and Red Baron Pizza to K-drama movies and K-pop music to biopharmaceuticals, has a sizable presence in Texas. Texas is home to CJ’s four warehouse facilities and CJ’s Tous Les Jours bakeries have several locations around Texas. The fan zone at last year’s CJ Cup allowed Texans to experience barbecue Korea-style: In addition to sampling bibigo’s Mandu Dumplings, they could try Korean crunchy chicken with Korean BBQ drizzle sauce.
Over the past decade, South Korean companies have reported 38 investment projects in Texas, amounting to nearly $20.6 billion in capital investment and creating more than 7,000 new jobs. These projects span various sectors, including electronics, energy, and manufacturing, highlighting the diverse nature of Korean investments in the state.
In addition to job creation, these investments have generated substantial tax revenues for Texas. The influx of capital and the establishment of new businesses lead to increased tax revenues from corporate taxes, property taxes, and sales taxes, benefiting local communities and the state government.
The economic relationship between Texas and South Korea is complemented by strong cultural ties. Direct flights between Seoul and Dallas-Fort Worth facilitate business and personal travel, strengthening the connection between the two regions. Texas's Korean community plays a vital role in fostering these ties, contributing to the state's cultural richness and diversity.
The partnership between Texas and South Korea is a terrific example of the benefits of international investment. South Korean companies have not only brought capital and jobs to Texas but have also enriched its cultural landscape. As this relationship continues to flourish, it promises to bring even greater economic prosperity and cultural exchange to the Lone Star State.
Aaron Demerson is President and CEO of the Texas Economic Development Corporation.
