Korean, Taiwanese, Japanese US investment to rise: Citi
Inbound capital expenditures from South Korean, Taiwanese, and Japanese enterprises into the United States are projected to maintain an upward trajectory as global supply chains undergo structural realignments, Citi reported.
U.S. Projects Drive Double-Digit Inbound Business Growth
Investments directed toward U.S.-bound projects compound over time, according to Ernesto Torres Cantu, who heads Citi’s global business outside of North America across more than 180 countries and jurisdictions. Cantu compared corporate capital allocation to a multi-stage manufacturing ramp-up, moving from initial land acquisition through facility construction to active daily operations. “So, it just keeps going up,” Cantu told Reuters in Hong Kong, noting double-digit growth in inbound business into North America.
Financial institutions are actively underwriting these inflows. Citi and JPMorgan are financing Japanese projects tied to Tokyo’s $550 billion U.S. investment pledge. Meanwhile, the White House recently unveiled the initial tranche of Seoul’s $350 billion strategic package.
| Country Pledge | Committed Amount | Financing Partners |
|---|---|---|
| Japan | $550 Billion | Citi, JPMorgan |
| South Korea | $350 Billion | Initial Tranche Unveiled by White House |
Multinationals Rework Trade Flows Amid Geopolitical Shocks
Large multinationals show high resilience amid geopolitical shocks, adjusting exceptionally fast to changing operational parameters. While tariffs remain a factor in corporate planning, Cantu stated that the Gulf War may be exerting an even larger impact by forcing companies to rework trade flows and supply chains. This requires financial institutions to continuously execute payments, trade finance, and transaction settlements across volatile operating environments.
Citi reported that its overall third-quarter revenue rose by 8%. Its services division—providing cash management, payments, trade finance, and liquidity to corporations, financial institutions, and governments—outperformed with a 15% increase in revenue. Alongside North American inbound flows, Cantu expects cross-border corridors involving Asia to expand further, with China and India anchoring two of the most active pathways.