Lee Jae-yong, Chung Eui-sun, Choi Tae-won, Koo Kwang-mo... The Future They Dream Of

[Asia Economy Reporter Park So-yeon] The heads of conglomerates set management plans looking at the distant future, not just immediate performance. Their decisions are not aimed at results visible in one or three years, but are creative resolutions for the group's future 10 or 20 years ahead and for a better life for humanity. The direction of these decisions can determine the future of the group. Recently, amid the great wave of the 4th Industrial Revolution, the heads of Korea's leading groups have been showing bold management moves toward the future. What kind of future do the heads of Samsung, Hyundai Motor, SK, and LG Groups?who are establishing themselves as key global industry players based on technological prowess?envision?

Samsung Electronics Vice Chairman Lee Jae-yong has recently been focusing on building smart cities based on 5th generation (5G) communication in major global cities such as the Middle East, Europe, and the United States. The goal is to make Samsung's devices, including home appliances and smartphones, as well as 5G communication equipment, the global standard for creating a future city where all things are connected. Samsung Electronics is expected to engage in fierce competition with China's Huawei in the 5G communication equipment market. According to market research firm IHS Markit's data as of the third quarter of last year, Huawei holds the top spot with a 30% share of the global 5G communication equipment market, while Samsung Electronics ranks second with 23%. Some predict that the leadership of the 5G market will be decided this year depending on the outcome of the competition. In fact, Samsung Electronics announced on the 14th the acquisition of TeleWorld Solutions, a U.S. 5G network design company, signaling an offensive in the communication equipment market.

Hyundai Motor Group Executive Vice Chairman Chung Eui-sun has set a goal to lead the hydrogen economy by developing and distributing hydrogen fuel cell vehicles at reasonable prices. Vice Chairman Chung plans to actively invest in strengthening technology, including miniaturization of fuel cell systems and maximizing efficiency, while considering ways to lower barriers to hydrogen fuel cell vehicle adoption. The hydrogen city and hydrogen economy he envisions refer to a future where major urban functions such as energy, transportation, and heating/cooling are powered by hydrogen energy. Vice Chairman Chung emphasizes that for hydrogen energy to be a practical solution to the climate emergency and future energy transition, the following must precede: ▲ cost reduction through technological innovation ▲ expansion of public acceptance ▲ establishment of a safety management system across the entire value chain.

SK Group Chairman Chey Tae-won emphasizes that the pursuit of corporate social value and contributions to human happiness are the keys that will determine the group's future. He believes that if a company fails to create benefits for a broad range of stakeholders extending to humanity and continues exploitative corporate activities, it cannot sustain itself. In particular, Chairman Chey proposed using advanced technologies such as big data and artificial intelligence (AI) not merely for business profits but for corporate technological capabilities aimed at coexistence with humanity. Recently, at the World Economic Forum (WEF, Davos Forum) in Switzerland, he shared achievements in pursuing social value and suggested properly measuring social value to maximize the public interest of stakeholders. Invited as a panelist at an official session of the Davos Forum, Chairman Chey said, "Changing the goal and system of corporate management from shareholders to stakeholders has become not a choice but an obligation," and added, "Let's advance social value measurement to maximize stakeholder value." He participated as a panelist in a session titled 'Stakeholder Capitalism in the Asian Era' held at the Davos Congress Center in Switzerland. SK explained that 'stakeholder capitalism' means pursuing the public interest of stakeholders including not only shareholders but also customers, employees, partners, local communities, and governments. He also introduced cases where SK's AI speaker 'NUGU' was used to care for the elderly and Alzheimer's patients.

LG Group Chairman Koo Kwang-mo is securing future growth engines through active alliances with global automakers in the electric vehicle battery sector. Last year, LG Chem established a joint venture for electric vehicle battery cells with the U.S. automaker General Motors (GM), and recently, it is reviewing the establishment of a battery joint venture with Hyundai Motor Group. Around 2025, when the electric vehicle market is expected to fully blossom, LG plans to lead the market based on solid cooperative relationships with automakers and technological capabilities. A business insider said, "The future society is difficult for anyone to predict, but the combination of Korean companies' technological prowess and the responsibility of their heads will allow them to continue leading the global market."