Lee Jae-yong and Heads of 4 Major Groups to Visit France and Vietnam This Time

Full Efforts to Attract Busan Expo in France
Seeking Bilateral Economic Cooperation Measures in Vietnam

Lee Jae-yong, Chairman of Samsung Electronics, Chey Tae-won, Chairman of SK Group, Chung Eui-sun, Chairman of Hyundai Motor Group, and Koo Kwang-mo, Chairman of LG Group, the heads of the four major conglomerates, are heading to Paris, France to support the bid for the 2030 Busan World Expo. They will also visit Vietnam to explore economic cooperation.

According to the business community on the 2nd, the heads of the four major groups, including Chairman Lee, will visit Paris, France, where the 172nd General Assembly of the International Bureau of Expositions (BIE) will be held from the 20th to the 21st. They plan to stay in Paris from the 19th to the 21st and actively engage in activities to support the Expo bid, including attending the official reception of the General Assembly.

At this BIE General Assembly, the inspection report of the 2030 Expo candidate countries will be circulated, and the 4th competitive presentation (PT) will be held. After the 5th competitive PT scheduled for November, the host city will be decided by a secret vote of BIE member countries. Since many member countries will have already decided their supported countries by then, this PT is highly significant. It is virtually the last opportunity for promotion.

The heads of the four major conglomerates attending the Korea-Japan Business Roundtable held in March [Image source=Yonhap News]

After completing their schedule with the reception on the 21st, the business leaders will head to Hanoi, Vietnam. They will participate in the Vietnam Economic Delegation, organized by the Korea Chamber of Commerce and Industry in cooperation with the Korea Trade-Investment Promotion Agency (KOTRA), to explore ways to enhance economic cooperation between the two countries. They will stay locally until the 24th, attending the 'Korea-Vietnam Business Forum' and actively engaging in business discussions, including signing memorandums of understanding (MOUs) between companies.

Vietnam is a major trading partner that marked the 30th anniversary of diplomatic relations with South Korea last year. Trade between the two countries has increased 161 times over 30 years since 1992, with last year's trade volume reaching $87.7 billion, the highest ever. Last year, the trade surplus with Vietnam was also $34.3 billion, making Vietnam the largest trade surplus country. South Korea is also the top investor in Vietnam. The relationship between the two countries was elevated last year to a 'Comprehensive Strategic Partnership,' indicating the highest level of external cooperation.

As Vietnam is considered the post-China, various news about the four major groups' local businesses is emerging. While Samsung Electronics and LG Electronics previously used Vietnam mainly as a production base, they are now expanding it into a research and development (R&D) hub, exploring diverse business opportunities locally.

Samsung Electronics established the Samsung R&D Center in Hanoi, Vietnam, in December last year. Chairman Lee visited the construction site of the center in 2020 and also attended the completion ceremony held at the end of last year, showing special interest. Samsung Electronics plans to develop Vietnam into a global strategic hub that performs comprehensive R&D in addition to global production bases.

LG Electronics also expanded its presence by upgrading its R&D center in Hanoi, Vietnam, to an official corporation in March. This move aims to strengthen its future growth engine, the automotive parts business. LG Electronics will conduct development and verification of in-vehicle infotainment (IVI) software at the Vietnam R&D corporation. To this end, it has announced plans to increase the corporation's workforce from about 750 employees to around 1,000 by next year.