President Lee Jae Myung Holds Swift Meeting with Business Leaders
Major Companies Rush to Prepare Investment Plans
"Skepticism Remains as Investment Was Already Announced During Yoon Administration"
Economic Organizations Expected to Emphasize Importance of Trade Issues
With President Lee Jae Myung and the business community set to hold their first official meeting, there is growing attention on whether major conglomerates will announce large-scale investments. Samsung Electronics is reported to have urgently convened a meeting of its semiconductor division executives. As the new administration has proactively established contact with the business sector, and with President Lee scheduled to attend the G7 Summit as an invited country, there is keen interest in whether substantive coordination between the government and corporations will take place.
On June 13, President Lee hosted a meeting with the heads of the five largest conglomerates and the leaders of six economic organizations at the Presidential Office in Yongsan. This was his first official meeting with business leaders since taking office on June 4. Compared to the Moon Jae In administration, which met with business leaders 49 days after inauguration without a transition committee, President Lee’s move is considered exceptionally swift.
President Lee Jae Myung is shaking hands with Samsung Electronics Chairman Lee Jae Yong at the meeting with economic organizations and business leaders held on the 13th at the Presidential Office in Yongsan, Seoul. Photo by Presidential Office Press Photographers Group. Yonhap News
As the new administration established contact with the business community just ten days after its launch, companies are reportedly reviewing their investment plans internally. Given the precedent of large conglomerates announcing major investment plans early in a new administration, there is speculation that similar announcements may follow this meeting.
The semiconductor (DS) division at Samsung Electronics is said to have recently canceled all external engagements and held an executive meeting. Amid ongoing market downturns and declining performance, there is speculation that a large-scale investment in the semiconductor division is being internally considered. However, a Samsung Electronics representative stated, “Nothing has been officially discussed yet,” expressing a cautious stance.
In previous cases, immediately after the launch of the Yoon Suk Yeol administration, the top 10 conglomerates?including Samsung, SK, Hyundai Motor, LG, Lotte, and Hanwha?announced a combined mid- to long-term investment plan totaling 1,055 trillion won. At that time, Samsung alone pledged to invest 450 trillion won in future strategic industries such as semiconductors, bio, and next-generation information and communications technology. During the Moon Jae In administration in 2018, Samsung, SK, and Hyundai Motor announced investment plans of around 300 trillion won. After the launch of the Park Geun Hye administration in 2013, the top 30 conglomerates announced plans to invest 155 trillion won, and after the Lee Myung Bak administration took office in 2008, investment plans totaling 95 trillion won were announced.
However, amid recent economic uncertainty, there is a sense of burden and some skepticism within companies. A business community official said, “We prepared investment plans to align with the five-year term of the Yoon Suk Yeol administration, but the 'martial law incident' disrupted the timing. With each group having already announced large-scale investment plans, it is questionable whether there is capacity for additional commitments.”
The heads of economic organizations who attended the meeting conveyed their requests regarding trade and economic issues. Sohn Kyung Shik, Chairman of the Korea Employers Federation, who advanced his business trip from Switzerland to attend the meeting, told Asia Economy before the event, “It is important to resolve trade issues. Since our trade is heavily concentrated with the United States and China, I plan to suggest the need for diversification.”
Yoon Jin Sik, Chairman of the Korea International Trade Association, delivered a similar message. An association official said, “With the G7 Summit approaching and President Lee possibly meeting with former U.S. President Donald Trump, we emphasized that Korea can serve as a key partner in rebuilding America’s advanced industries and requested the government to adopt a flexible trade strategy.” In addition, organizations such as the Korea Chamber of Commerce and Industry and the Korea Federation of SMEs requested regulatory improvements to boost domestic investment, solutions to labor shortages, and expanded support for the transition to carbon neutrality.
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