[Breaking] Lee Urges Firms to Align with 5-Region-3-Special-Zone Plan... Top 10 Groups to Invest 270 Trillion Won Over 5 Years

President Lee Meets with Heads of Top 10 Business Groups
Lee: "Everything Is Expensive in the Seoul Metropolitan Area... Opportunities Lie in the Regions"
Business Community Plans Total Regional Investments of 300 Trillion Won

President Lee Jaemyung is speaking at the 'Corporate Meeting to Expand Youth Employment and Local Investment' held at the Blue House on the 4th. Yonhap News

President Lee Jaemyung met with the heads of the top 10 conglomerates on the 4th and asked them to align their efforts with the government’s initiative to revitalize local regions centered on the five mega economic zones and three special zones. He also pledged that the government would "provide the best possible support," including prioritizing summit diplomacy with countries needed by businesses. The business community responded by promising full support, saying it would invest 270 trillion won in local regions over the next five years.

On the afternoon of the same day, President Lee held a "Corporate Meeting to Expand Youth Employment and Local Investment" with the heads of the top 10 conglomerates at the Blue House. This was the first meeting this year between President Lee and the leaders of major corporations, arranged to share the government’s achievements from its visit to China and to discuss companies’ new hiring plans and local investment plans.

President Lee asked companies to join the government’s measures to reinvitalize local areas. He said, "The government has decided to build new growth hubs in local regions under the system of five mega economic zones and three special zones and to concentrate investment there," and proposed, "I wonder if companies could also align their efforts with that direction."

President Lee went on to say, "In the long run, everything is expensive in the Seoul metropolitan area," pointing out that "land prices are high, and energy, electricity, and water are becoming increasingly scarce." He added, "Because the metropolitan area is overconcentrated, it has become a factor that is hard to endure and that undermines competitiveness. In the long run, there will be opportunities in local regions."

He repeatedly stressed the need for balanced growth between regions. President Lee said, "Our national territory is small, yet the gap between the metropolitan area and other regions is too large," and pointed out, "All major cities are within two and a half hours by high-speed rail, but people act as if something terrible will happen if they step outside the metropolitan area."

He continued, "Because many facilities, opportunities, and infrastructure are all concentrated in the metropolitan area, it is hard to find people in local regions. Since it is hard to find people, business activities are difficult; because business activities are difficult, jobs disappear; and because jobs disappear, people leave. This vicious cycle continues."

Ryu Jin, Chairman of the Korea Enterprises Federation, responded by saying, "The major 10 groups are planning local investments of about 270 trillion won over the next five years." He added, "If we include companies beyond the top 10 groups, I think total local investment by businesses could reach around 300 trillion won," and said, "We intend to inject vitality into regions through bold investment and to breathe new life into young people in neglected areas."

In addition, Chairman Ryu said, "Along with increasing new hires, we will also expand education and training programs," and appealed, "We ask the government to provide exceptional support so that companies’ recruitment and employment plans can proceed without setbacks."

The meeting presided over by President Lee was attended by Samsung Electronics Chairman Lee Jaeyong; SK Supex Council Chairman (Vice Chairman) Choi Changwon; Hyundai Motor Group Chairman Chung Euisun; LG Chairman Koo Kwangmo; Lotte Group Chairman Shin Dongbin; Posco Group Chairman Jang Inhwa; Hanwha Group Vice Chairman Kim Dongkwan; HD Hyundai Chairman Chung Kisun; GS Chairman Huh Taesu; and Hanjin Group Chairman Cho Won Tae. Also present were business association leaders such as Korea Enterprises Federation Chairman Ryu Jin and Korea Chamber of Commerce and Industry Executive Vice Chairman Park Iljun, as well as Deputy Prime Minister and Minister of Economy and Finance Koo Yoon Cheol and Minister of Trade, Industry and Energy Kim Jeong Kwan.