The funding announcement comes just as the group’s massive chipmaking unit warned of weaker consumer demand for technology products for the rest of the year.
Leaders from the mammoth SK Group met virtually with US President Joe Biden on Tuesday to announce the landmark deal, which is expected to create more than 15,000 new jobs.
SK Group said it would direct the funding to increased production and development of semiconductors, electric vehicle batteries, and pharmaceuticals.
Biden touted the announcement as “evidence that the United States, Korea and its allies are back, and winning the technology competition of [the] 21st century.”
“In the past, these kinds of technology investments went to China,” he said.
“I feel so badly — I’m so close to you,” he told the SK delegation, later posting a shot on social media of him waving from a balcony.
The news came as SK Hynix, the group’s chipmaking unit, warned Wednesday that it expected sales of some electronics to drop in the coming months.
While the company enjoyed strong sales in the second quarter — with its revenue reaching a record high — it anticipates a slowdown in demand for memory chips in the second half of the year.
That’s because shipments of PCs and smartphones that use those components could be “lower than initially predicted,” SK Hynix said in a statement during its earnings presentation.
— CNN’s Donald Judd contributed to this report.