Business roundtable focuses on cooperation and investment

Economy

Published: 21 May. 2022, 11:58 Updated: 21 May. 2022, 16:07

Business roundtable focuses on cooperation and investment

U.S. Commerce Secretary Gina Raimondo and Korean Minister of Trade, Indusstry and Energy at the Grand Hyatt in Seoul on Saturday in attending the U.S.-Korea Business Roundtable. [MINISTRY OF TRADE, INDUSTRY AND ENERGY]

During a business roundtable held Saturday, Korean and U.S. companies agreed to increase investment and strengthen cooperation to stabilize the supply of key manufactured goods.

The meeting, formally the U.S.-Korea Business Roundtable, was held at the Grand Hyatt Seoul and attended by business leaders from both countries, Korean Minister of Trade, Industry and Energy Lee Chang-yang and U.S. Commerce Secretary Gina Raimondo.

It was held as Korea agrees to join the Indo-Pacific Economic Framework (IPEF), an initiative introduced by U.S. President Joe Biden designed to strengthen economic cooperation between the United States and Asia.

After the roundtable, Lee and Raimondo signed an agreement on strengthening the economic relationship between the two countries.

According to the U.S. Commerce Department, the memorandum of understanding covers dialogue on the digital economy; export controls; advanced manufacturing and supply chain resilience; and healthcare and healthcare technology, which was noted as being "particularly important."

"We also look forward to working with Korea on other topics through the Indo-Pacific Economic Framework and to continuing to strengthen the U.S.-Korea relationship," the Commerce Department stated.

During the roundtable itself, Korean companies reaffirmed their commitment to increase investments to ensure steady production of key products, while U.S. companies making products with advanced and critical technologies, such as semiconductors, agreed to continue their investments in Korea.

Korean companies — including Samsung Electronics — plan to invest 510 trillion won ($400 billion) through 2030 in local semiconductor manufacturing, with funding committed to technology development, training and infrastructure.

On May 18, Hyundai Motor and Kia announced a combined investment of 21 trillion won to increase domestic EV production capacity.

U.S. semiconductor equipment manufacturer Lam Research in April opened its first research center in Asia in Korea. It is located near a Samsung Electronics semiconductor plant.

Arizona-based ON Semiconductor plans to invest $200 million in the expansion of its power semiconductor plant in Korea, while DuPont is investing $28 million to build a manufacturing facility.

Marlborough, Massachusetts-based Cytiva, a division of Danaher, plans to invest $52 million in a cell culture bag facility, while Netflix announced a $100 million investment.

Waltham, Massachusetts-based Thermo Fisher Scientific on Saturday signed an agreement to establish a manufacturing facility in Korea. The investment is expected to help strengthen supply links between Korea and the United States.

The Korean government earlier this week announced it is joining the U.S.-led IPEF, a fair trade initiative aimed at maintaining a steady supply of strategic goods between member states.

"Amid the changing global economic environment, cooperation and joint efforts between governments and companies is urgently needed," Lee said. "Mutual cooperation between Korea's manufacturing capability and U.S. technology is especially needed."

The minister stressed strengthened ties between Korea and the United States, especially as this year marks the 10th anniversary of the United States-Korea Free Trade Agreement.

"The business between Korean and U.S. entrepreneurs is meaningful at a time when the relationship between the two countries is moving beyond trade and investment cooperation to developing a supply network and technology partnerships," Lee said.

Lee Jae-yong, Samsung Electronics vice chairman, Chey Tae-won, SK Group chairman, Koo Kwang-mo, LG Group chairman, Euisun Chung , Hyundai Motor Group chairman, Shin Dong-bin, Lotte Group chairman, Kim Dong-kwan, Hanwha Solutions CEO, Choi Soo-yeon, Naver CEO, Cristiano Amon, Qualcomm CEO, and Gary Dickerson, Applied Materials president attended the roundtable.

BY LEE HO-JEONG [lee.hojeong@joongang.co.kr]