CJ Group is Recognized as one of the Prominent South Korean Investors in the US.

But South Korean investment goes well beyond durable goods and electronics. In fact, the U.S. is now the top destination for South Korean foreign direct investment and South Korea is one of the top 15 foreign investors in the United States. Driving this investment are Korean companies operating in equally important but less obvious sectors such as food, logistics, agriculture and even in Hollywood movies and television. 

One such company is CJ Group. Though not yet a household name, CJ Group has invested more than $5 billion in the United States in recent years. Its businesses operating in the U.S. employ more than 13,000 people. Sometimes without even knowing it, millions of American consumers enjoy popular food products, receive goods at their doorstep, and watch entertaining TV programs because of CJ Group’s U.S. presence.

The most recent CJ investment is an up to $457 million joint venture with a South Korean government entity to develop three strategic logistics centers in the United States to serve as global hubs, facilitating the movement of goods, especially between the two countries, and within the 50 states. Meanwhile, CJ has invested more than $440 million in its CJ BIO operation in the American heartland, in Iowa, making livestock feed products for the beef and pork industries. 

In 2019, CJ concluded a $1.84 billion acquisition of Minnesota’s Schwan’s Company — a major manufacturer of frozen food products, and the businesses have integrated to produce pizza, desserts and new lines of Korean foods. CJ Foodville, another affiliate, just announced a $45 million factory in Georgia that will create 285 jobs and produce goods for its chain of Tous Les Jours bakeries across the United States.

In a sign of growing cultural investment, CJ bought Hollywood’s Endeavor Content for $785 million last year, injecting some much-needed capital into a writer-strike-plagued Hollywood. A soft-power superhighway runs between the United States and South Korea, as Korean audiences have long enjoyed American blockbusters while Korean dramas and TV shows now routinely rank among the most-viewed on U.S. streaming services, such as “Squid Game.” From an entertainment perspective, the two countries “grok” each other.

The South Korean investment in America has gotten the notice of Congress, too, where members of the Senate in June formed a new bipartisan South Korea Caucus. Sen. Jon Ossoff, D-Ga., a co-founder of the caucus, has led two economic development missions to South Korea in the past two years, enticing more Seoul investment into the Peach State from Hyundai, Hanwha and SK.

The increasingly volatile nature of the geopolitical landscape is influencing how nations and global companies align on economic priorities. American corporations are looking to diversify their international operations and supplier base away from less-friendly nations and toward more predictable and closer ones. This process — called “friend-shoring” and “near-shoring” — has become commonplace in Washington economic policy discussions. U.S. states that once rolled out the welcome mat for foreign investors are becoming more selective about which foreign countries they are allowing to buy and build in the United States.

South Korea understands this and is stepping up to the plate to aid U.S. manufacturers in keeping U.S. supply chains moving smoothly and safely. It is a significant development from a major Asian ally brought about by the long-standing commitment the United States has made to Seoul over seven decades. 

Patrick B. Pexton, a longtime journalist covering defense and foreign policy for outlets such as National Journal and CQ Roll Call, teaches at the Johns Hopkins School of Advanced International Studies in Washington.