Korean conglomerates have over 200 entities in Mexico, Canada: report

Korean conglomerates operate more than 200 business entities in Mexico and Canada facing heavy tariffs by the U.S. government, possibly from next month, a report showed Tuesday.

In its survey of 88 Korean conglomerates, local corporate data firm Korea CXO Institute found 25 of them operated a combined 201 subsidiaries in the two countries as of the end of 2024.

Of them, 110 subsidiaries are located in Canada and 91 in Mexico, with Samsung Group leading the others with 50 entities in Canada and 18 in Mexico, the CXO report said.

Hyundai Motor Group operates 16 and 12 subsidiaries in Mexico and Canada, respectively, according to the report.

The institute expected Korean companies that produce vehicles, car batteries and home appliances in the two countries will likely lose their price competitiveness in the U.S. market if higher tariffs are adopted.

"It won't be easy for the companies to move their plants to the U.S. in a short period of time to avoid higher tariffs. They need to increase production in their U.S. plants or diversify markets," the institute's director, Oh Il-seon, said.

Trumped signed an executive order last week to impose 25 percent tariffs on Mexican and most Canadian imports.

The move was set to go into effect Tuesday (U.S. time), but Trump decided to delay its start by one month after the two neighbors agreed to take steps to ease U.S. concerns over drug trafficking and border security. (Yonhap)