[Reporter’s Notebook] Korean Conglomerates Back President Yoon... The Acceleration Pedal Is Up to the Government

During his two-day visit to Japan on the 16th and 17th to normalize Korea-Japan relations, President Yoon Suk-yeol was accompanied by the heads of Korea's five major conglomerates: Lee Jae-yong of Samsung Electronics, Chey Tae-won of SK Group, Chung Eui-sun of Hyundai Motor Group, Koo Kwang-mo of LG Group, and Shin Dong-bin of Lotte Group. These business leaders are at the forefront of the shuttle diplomacy between Korea and Japan, restored after 12 years, assisting President Yoon in promoting the revitalization of Korea-Japan economic cooperation.

The government's previously announced national advanced industry development strategy also relies heavily on active corporate investment. The 550 trillion won investment planned for six advanced industry sectors?semiconductors (340 trillion won), displays (62 trillion won), secondary batteries (39 trillion won), bio (13 trillion won), future vehicles (95 trillion won), and robotics (1.7 trillion won)?is primarily driven by private investment. For example, the government's plan to establish an advanced system semiconductor cluster in Yongin, Gyeonggi Province by 2042 is supported by Samsung Electronics' 300 trillion won investment.

LG has committed to investing 54 trillion won over the next five years to foster future growth engines such as artificial intelligence (AI), bio, and cleantech, while Hyundai Motor Group plans to invest more than 63 trillion won in the domestic market by 2025 to support the national advanced industry development.

These large-scale corporate investment commitments were made despite the challenging global business environment. Amid a slowdown in global economic growth and decreased consumer spending, which have triggered red flags for Korea's major export industries including semiconductors and rapidly deteriorating corporate earnings, companies have chosen to support the government's recognition that fostering advanced industries is directly linked to national security and the belief that investment in future growth engines is essential, even if it means tightening belts now to prepare for future uncertainties.

Until now, the Korean government has lagged behind competing countries in providing subsidies and tax credits in advanced industries such as semiconductors. However, this advanced industry development strategy marks a turning point. To ensure that large-scale private investments bear fruit, it is necessary to remove obstacles that could cause project delays. Accelerating the execution of private investments is the government's responsibility.