Jung Eui-sun and Lee Jae-yong, 'Korean New Deal' Future Car Exchange

Top 2 Business Groups Lead Market Domination and Collaboration
Research Labs First Revealed to Rival Heads
Supplier Visits to Client Companies Unprecedented

[Asia Economy Reporters Kiho Sung and Suyeon Woo] Samsung Group and Hyundai Motor Group are increasingly likely to join forces to support the government's recently announced Korean New Deal core project, the 'Smart Mobility' business. This follows the meeting between Samsung Electronics Vice Chairman Lee Jae-yong and Hyundai Motor Group Executive Vice Chairman Chung Eui-sun at Samsung SDI's Chungnam plant in May, and their subsequent meeting on the 21st at Hyundai's Namyang Technology Research Center in Hwaseong, Gyeonggi Province. The business community anticipates that through these two meetings, Korea's top two groups will combine their strengths to lead the global smart mobility market.

◆ Unprecedented to meet twice... Why meet twice? = This is the first time Hyundai Motor Group has opened its 'R&D heartland,' the Namyang Research Center, to the head of a competitor. As the spearhead of Hyundai Motor Group's development competing in the global market, this facility is strictly closed to outsiders, especially competitors. Nevertheless, Executive Vice Chairman Chung opening the doors of Namyang Research Center to Vice Chairman Lee signifies a strong urgency for the country's top two companies to unite and preemptively lead the future mobility market.

It is known that the return visit schedule was coordinated starting from Executive Vice Chairman Chung's visit to Samsung SDI's Cheonan plant in May, indicating that the two leaders have already shared significant mutual understanding regarding future industries. During their meeting, Vice Chairman Lee and Executive Vice Chairman Chung reportedly focused on discussing next-generation electric vehicle batteries, urban air mobility (UAM), robotics, and other smart mobility industries.

A business insider said, "It is extremely rare for a supplier to visit a client," adding, "Especially in Hyundai Motor Group's case, opening the Namyang Research Center, where core technologies are developed, also means showing the client's technology, so it must have been a difficult decision."

◆ Collaboration beyond electric vehicle batteries to 'smart mobility solutions'? = The business community expects that following this meeting, the two groups will collaborate more closely not only on electric vehicle batteries but also on the smart mobility industry. Vice Chairman Lee's test drive of autonomous and hydrogen electric vehicles on the day supports this interpretation.

Hyundai aims to build a future city where UAM, mobility transfer hubs, and purpose-built vehicles (PBV) are organically connected. To realize this future vision, collaboration with companies possessing advanced technologies in IT, batteries, autonomous driving, and materials is essential.

Samsung Group is also accelerating its focus on semiconductor-centered automotive components as one of its four new growth businesses. Last week, Vice Chairman Lee personally visited Samsung Electro-Mechanics' Busan plant to urge active response to securing a leading position in the automotive multilayer ceramic capacitor (MLCC) market. Additionally, Samsung's focused development of telecommunications and artificial intelligence (AI) businesses are key areas in future vehicles. Samsung Electronics recently unveiled 6G communication technology, considered a next-generation future technology. 6G is a future core communication technology enabling tera (tera) bps-level ultra-high-speed transmission and microsecond (㎲)-level ultra-low latency wireless communication.

A business official explained, "Other automakers are also abandoning independent paths and expanding various partnerships in future vehicles," adding, "If the two companies leverage and complement each other's strengths, they can reduce development costs and gain technological superiority."

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