Spy Operation-Like... Kim Sang-jo and 5 Major Groups Meeting

Changed meeting location one day prior
Moved through staff-only entrance
Security guards blocked press access
Heard difficulties before emergency economic meeting

Jang Dong-hyun, President of SK, is moving to the breakfast meeting at the Four Seasons Hotel in Jongno-gu, Seoul on the 22nd to discuss industry measures related to the COVID-19 situation with executives from the five major groups, including Kim Sang-jo, Chief of Policy Office of the Presidential Secretariat. Photo by Kang Jin-hyung aymsdream@

[Asia Economy Reporters Hwang Yoon-joo, Sung Ki-ho, Lee Ki-min] "Is that so? Hahaha!"

At around 7:45 a.m. on the 22nd, hearty laughter echoed from the VIP room of the Italian restaurant on the 2nd floor of the Four Seasons Hotel in Gwanghwamun, Seoul. Here, the heads of the top five conglomerates, including Kim Sang-jo, Chief of Staff for Policy at the Blue House, Lee In-yong, President of Samsung Electronics, Gong Young-woon, President of Hyundai Motor Company, Jang Dong-hyun, President of SK, Kwon Young-soo, Vice Chairman of LG Group, and Hwang Gak-gyu, Vice Chairman of Lotte Holdings, held a private breakfast meeting.

The Blue House cautioned against overinterpretation, stating that this was just a regular meeting between Chief Kim and the top executives of the five major groups. However, perhaps aware of the severe economic situation due to the novel coronavirus disease (COVID-19) crisis, the meeting's location selection resembled a covert operation.

Until the day before, the meeting place was a well-known Korean restaurant nearby, frequently visited by politicians. There was also a clear emphasis on security. At around 7:25 a.m., only President Jang entered through the hotel’s main entrance, while the others used the restaurant staff-only entrance via the underground parking lot, ensuring their paths did not intersect with outsiders. Security personnel were stationed throughout to prevent contact with the press.

From around 7:45 a.m., as breakfast menus were brought into the VIP room, a bright atmosphere continued. The presidents took turns speaking seriously, and Chief Kim listened and responded. When Chief Kim occasionally made jokes, laughter burst out, creating an overall warm and friendly feeling.

As the meal was finishing, the mood turned somewhat serious. Everyone lowered their voices by a tone. At around 8:54 a.m., Chief Kim walked out of the VIP room holding documents in his left hand. When asked what the most urgent support the companies requested was, he made a gesture indicating he would not answer and firmly closed his mouth. Instead of using the elevator for the general public, he left first through a private exit under the protection of security personnel.

The top executives of the five major groups remained for about 25 more minutes after Chief Kim left, continuing their conversation in low tones. Around 9:20 a.m., Vice Chairman Kwon left first, followed by the other presidents, who exited through the staff-only exit. They remained silent in response to the press's questions.

This breakfast meeting was held to listen to the difficulties related to job measures and support plans for key industries in response to COVID-19 from major group executives ahead of the 5th Emergency Economic Meeting, which President Moon Jae-in was to preside over.

On the 13th, at a senior secretaries and aides meeting held at the Blue House, President Moon said, "If jobs collapse, the lives of the people collapse, and the resulting social costs are immeasurable," and ordered, "Review the maximum support measures for companies maintaining employment."

The Blue House explained the meeting by saying, "Meeting with corporate officials to hear their opinions is a routine task performed by Chief Kim," and that it was "to listen to the difficulties of companies and share government policies."

The top executives of the five major groups reportedly appealed about management difficulties caused by the COVID-19 crisis and requested extraordinary government support. In particular, companies are focusing on liquidity issues. So far, companies have repeatedly requested through economic organizations to expand liquidity supply regardless of company size or industry. It is believed that requests were made to expand short-term funding support such as corporate paper underwriting, as well as deferment of repayment and interest on existing loans.

It is also expected that proposals were made for indirect liquidity support measures such as government strengthening of overseas business trip support to allow sending essential personnel to overseas factories, including Samsung Electronics’ plan to urgently dispatch semiconductor technicians to its Xi’an Plant 2 in China by chartering a special flight, as well as deferral of corporate tax, value-added tax, individual consumption tax payments, and extension of deadlines for the four major social insurances and tax payments.

This content was produced with the assistance of AI translation services.