Obama said the agreement underlined the strength of Washington's alliance with Seoul at a time of heightened tensions on the peninsula after last month's deadly attack by North Korea on the small island of Yeonpyeong. HYUNDAI EXPANSION The U.S.-South Korea trade deal is expected to push Hyundai Motor to raise its U.S. output to avoid tariff barriers and tackle limited capacity as it seeks to continue its growth momentum in the world's No.2 auto market, analysts said. In the longer term, Hyundai is seen emerging largely unscathed as it has steadily raised U.S. output and the company may expand capacity further to boost output at its U.S. plant, already running at full capacity. "The latest deal will raise the possibility that Hyundai would construct a new plant in Alabama ," said Lee Myung-hoon, an analyst at E*Trade Securities.