Samsung Electronics and Hynix CEOs Summoned by Moon... Seeking 'Semiconductor' Solutions

[Image source=Yonhap News]

[Asia Economy Reporters Lee Ji-eun and Jang Se-hee] On the 15th, President Moon Jae-in invited corporate representatives from Samsung Electronics, SK Hynix, Hyundai Motor, and others to the Blue House to discuss plans for fostering strategic industries such as semiconductors and electric vehicles. As U.S. President Joe Biden declared a "semiconductor leadership" and actively engages in a competition for supremacy in advanced industrial technology with China, President Moon also intends to prioritize strategic industries at the national level. Additionally, this move appears aimed at stabilizing state affairs by addressing economic issues following the ruling party's defeat in the April 7 by-elections.

According to the Blue House, the expanded economic ministers' meeting held that afternoon will be attended by Lee Jung-bae, President of Samsung Electronics; Lee Seok-hee, President of SK Hynix; Gong Young-woon, President of Hyundai Motor; Choi Woong-sun, CEO of Infac; Ga Sam-hyun, CEO of Korea Shipbuilding & Offshore Engineering; Jung Jin-taek, President of Samsung Heavy Industries; Bae Jae-hoon, President of HMM; and Hwang Ho-sun, President of Korea Ocean Business Corporation. The meeting is organized to review the current status of South Korea's strategic industries such as semiconductors, electric vehicles, and shipbuilding, and to discuss response strategies. In particular, countermeasures for the semiconductor industry caught in the U.S.-China hegemony competition are expected to be a key topic of discussion.

Earlier, President Biden recently gathered global corporate representatives, including those from Samsung Electronics, via video conference to express his determination to restructure the semiconductor supply chain and requested aggressive investment in the U.S. This is pressure to bring the semiconductor supply chain, which is concentrated in Asia, to the United States. As Korean companies face an increased likelihood of exposure to political uncertainties in the future, the need for government-level strategies and countermeasures is growing.

Moreover, this initiative is also interpreted as an effort to gain momentum for state affairs in the final year of President Moon's term while attending to corporations and the economy. After Commerce Day on the 31st of last month, President Moon emphasized communication with the business community to Blue House aides. At the expanded economic ministers' meeting, President Moon is expected to stress support for research and development (R&D) and workforce training in semiconductors, electric vehicles, and shipbuilding. A government official stated, "We plan to significantly expand support for R&D and workforce training in these three industries going forward."