Korea Inc. gears up for potentially charged first date with new president

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Korea Inc. gears up for potentially charged first date with new president

Published: 05 Jun. 2025, 19:24 Updated: 05 Jun. 2025, 19:31

Audio report: written by reporters, read by AI

President Lee Jae-myung, right, greets Samsung Electronics Executive Chairman Lee Jae-yong, who welcomed him during a visit to the Samsung Software Academy for Youth in Gangnam District, southern Seoul, in March. [NEWS1]

Korea’s major business groups are gearing up for high-stakes strategy meetings just as President Lee Jae-myung begins his term, setting the stage for a traditional yet politically charged rendezvous between the presidential office and the country’s top conglomerates.

In past administrations — from Lee Myung-bak to Park Geun-hye, Moon Jae-in and Yoon Suk Yeol — Korean presidents met with the heads of major conglomerates within a week or two months of taking office. A meeting between President Lee and business leaders now appears to be only a matter of time.

Historically, such meetings have come with strings attached — after meeting a new president, corporate leaders often unveil bold investment or hiring plans, either voluntarily or under subtle political pressure. As President Lee signals aggressive backing for high-tech industries like artificial intelligence and semiconductors, all eyes are on how the business world will respond.

Groups set strategy session dates

Korea's top five conglomerates — Samsung, SK, Hyundai Motor, LG, and Lotte — plan to convene top-level strategy sessions within the coming weeks, according to industry insiders on Thursday.

While such meetings are part of their usual biannual planning rhythm, the timing is particularly sensitive this year.

Samsung Electronics will hold its global strategy meeting from June 17 to 19. Executives and overseas division heads will discuss regional and sector-specific issues, as well as objectives and strategies for the second half of the year.

The meeting will be led by Roh Tae-moon, acting head of the Device eXperience division, and Jun Young-hyun, head of the Device Solutions unit, which is responsible for the firm's chip business. Executive Chairman Lee Jae-yong will be briefed afterward.

President Lee Jae-myung, then-presidential candidate for the Democratic Party, right, speaks with Korea Chamber of Commerce and Industry (KCCI) Chairman Chey Tae-won during a meeting with leaders of Korea’s five major business lobbies at the KCCI headquarters in Jung District, central Seoul, on May 8. [NEWS1]

SK Group is scheduled to host its own half-year strategy meeting on June 13 and 14. One of SK’s three flagship conferences, alongside the Icheon Forum in August and a CEO seminar in October, this year’s gathering will focus on a group-wide rebalancing initiative.

"Chairman Chey Tae-won is set to lead this year’s meeting, and tensions are running high after the abrupt replacement of the CEO at SK Innovation — one of the group’s core affiliates — outside the usual executive reshuffle cycle," said an SK official.

Hyundai Motor Group is expected to hold a meeting this month with heads of regional operations. Executive Chair Euisun Chung will receive a direct report from the participants.

LG’s Chief Operating Officer Kwon Bong-seok is leading a series of investment review meetings across affiliates, which will be reported to Chairman Koo Kwang-mo.

Lotte Group plans to convene its biannual Value Creation Meeting (VCM), formerly known as the Presidents’ Council, in July under Chairman Shin Dong-bin.

President Lee Jae-myung, third from left, attends a meeting with leaders of Korea’s five major business lobbies at the Korea Chamber of Commerce and Industry in Jung District, central Seoul, on May 8. At his right is KCCI Chairman Chey Tae-won. [JOINT PRESS CORPS]

Will industry align with AI push?

President Lee has pledged massive investment in advanced tech sectors like AI and semiconductors. This signals a potential for major corporate announcements in return, particularly following these internal strategy sessions.

According to a senior executive at one of the top five groups, corporate leaders are already evaluating how to adapt.

“When a new government comes in, its policy direction inevitably affects corporate strategy,” the executive said. “These meetings will not only address internal challenges but also assess policy synergies and refine our investment and hiring plans.”

Precedents suggest big moves are likely.

In President Lee Myung-bak’s first year, the top 30 groups promised to invest around 95 trillion won ($70 billion). Under President Park Geun-hye, 10 major conglomerates committed roughly 37 trillion won.

Samsung, SK and Hyundai Motor made large multiyear investment pledges under President Moon Jae-in. And in 2022, when President Yoon Su Yeol took office, major companies unveiled long-term investment plans totaling 1,060 trillion won.

Lingering risks

This year, however, clouds loom over the economic landscape. Korea faces weak indicators and rising external risks, such as potential new tariffs from the United States.

Meanwhile, large companies, aside from Samsung, have moved away from regular hiring, shifting to recruitment on a rolling basis, which limits their flexibility to boost job creation quickly.

“This administration begins under economic duress and high uncertainty, and large-scale investments are being approached with caution,” said one industry insider. “We hope the government doesn’t repeat the mistake of treating businesses as mere executors of state policy.”

Translated from the JoongAng Ilbo using generative AI and edited by Korea JoongAng Daily staff.
BY KIM KI-HWAN [[email protected]]