Four Major Group Chairpersons Meet After 8 Months...Will the Meeting Become Regular?

[Asia Economy Reporter Kim Hyewon] The heads of the four major conglomerates held an unofficial meeting. Shin Dong-bin, chairman of Lotte Group, who is currently in Japan, was absent, but it is reported that the heads of these five major groups reached a consensus to establish a communication channel to regularly meet and discuss economic issues in the future.

According to industry sources on the 23rd, earlier this month, Lee Jae-yong, vice chairman of Samsung Electronics, Chung Eui-sun, executive vice chairman of Hyundai Motor Group, Chey Tae-won, chairman of SK Group, and Koo Kwang-mo, chairman of LG Group, met at an undisclosed location. It was the first time in about eight months that the four gathered since their meeting at the Korea Chamber of Commerce and Industry's New Year's joint meeting in January. Given that the COVID-19 pandemic has brought a survival crisis to the entire industry during this period, it is believed they put their heads together to find ways to overcome it.

In particular, it is reported that candid discussions took place regarding Chairman Chey, who is considered the 'eldest brother' figure, and his potential role as chairman of the Korea Chamber of Commerce and Industry. Chairman Chey, who is rumored to be a candidate for the next chairman of the Korea Chamber, is currently deliberating on whether to accept the position. A senior business official said, "There is a strong opinion that an economic organization leader who can encompass the entire business community, like the former status of the Federation of Korean Industries (FKI), is needed," adding, "If such a status is assumed, it is understood that there is a group owner who can take on this role."

Chairman Chey himself reportedly has doubts about the suitability of the heads of the four major groups leading an economic organization representing 180,000 merchants nationwide, unlike the FKI, which was centered on large corporations, even though the Korea Chamber of Commerce and Industry is playing a significant role as the senior leader of the business community under the current government. Since the Korea Chamber, established under the Chamber of Commerce Act, must coordinate the interests of large corporations, small and medium-sized enterprises, as well as small business owners, Chairman Chey is currently gathering opinions from various sectors of society while postponing a final decision.

The meeting of the four major group chairmen on this day is likely to become a regular gathering of the five major group heads, including Chairman Shin. Last year, Vice Chairman Lee personally made calls to arrange a meeting at Seungjiwon between Crown Prince Bin Salman of Saudi Arabia and the heads of the five major groups, but regular meetings have not been held. Another business executive said, "The biggest characteristic of the current generation of heads is that they not only receive reports on business issues but also propose ideas and lead strategies," adding, "In the era of the Fourth Industrial Revolution, where all industries are organically connected, they are aware that business cooperation with competitors is sometimes necessary."

Since the common business keywords across these groups are electric vehicles and batteries, it is expected that related discussions were also part of the meeting. However, it is reported that there was no mention of the ongoing battery lawsuits between SK Innovation and LG Chem. Additionally, there were reportedly strong voices of concern surrounding the amendments to the Commercial Act and the Fair Trade Act, which have attracted the full attention of the business community.