청 Policy Chief: "Investments by Our Companies Aiming at Global Markets Are Thoroughly Commercial"

US Semiconductor and Battery Investment Secures 'Large Market'... "90% of Georgia Battery Production Equipment Imported from Korea"

[Asia Economy Reporter Ryu Jeong-min] Lee Ho-seung, Chief of Policy at the Blue House, stated that the large-scale investment by domestic companies in the United States is a 'thoroughly commercial' move by Korean companies aiming for the global market. Given the nature of businesses, there is no reason to engage in loss-making ventures, and this is the result of a strategic move by domestic companies to secure the 'large market' that is the U.S.

In an interview on the morning of the 25th with CBS Radio's 'Kim Hyun-jung's News Show,' Lee said, "We must aim for the global market, and the strategy is to secure places with the best technology and large markets," adding, "What is the principle by which the economy operates today? Our companies' investments are made strictly on a commercial basis."

Lee explained, "About two weeks ago, the K-semiconductor strategy was announced, with a domestic investment plan of 510 trillion won. The announced investment in the U.S. semiconductor sector was about 20 trillion won," and "this is not about outsourcing and weakening Korea, but about maintaining an industrial ecosystem that is mutually complementary."

[Image source=Yonhap News]

Lee attributed significance to the scene where U.S. President Joe Biden, during a joint press conference with President Moon Jae-in, unexpectedly invited and introduced business leaders from Samsung, Hyundai Motor, SK, and LG, and then expressed his gratitude.

Lee emphasized, "At that moment, the whole world must have been watching, and it would have been recognized that the U.S. acknowledged the future technological capabilities of our companies and chose them as partners."

He also mentioned that securing the largest U.S. market in the world would have considerable effects domestically. Lee said, "When just one large company enters the U.S., many small and medium-sized enterprises and mid-sized companies follow, creating a ripple effect and generating jobs domestically," adding, "For example, the Georgia battery plant imports 90% of its production equipment and 50% of its materials from Korea."

Lee added, "LG has established a joint venture with GM, and SK with Ford, and they are proceeding with additional investments. In the situation where the huge electric vehicle market is opening, entering as partners will have positive effects."

[Image source=Yonhap News]

Regarding the COVID-19 vaccine issue, Lee stated, "There was a contract for consignment production between Moderna and Samsung BioLogics, and although there is no contract regarding the distribution of hundreds of millions of doses of Moderna vaccines produced in Korea, from a corporate perspective, considering what is the most efficient logistics, domestic production is a very effective way to enhance the stability of domestic vaccine supply."

Lee predicted, "As Korea becomes a global vaccine production hub, the longer the relationship between the party holding key vaccine technology and our biopharmaceutical manufacturers lasts, the more authority we will gain," adding, "In the process of elevating the level from simple consignment production to licensing or direct investment, more authority will come to us."

Meanwhile, in response to a question about whether China would be wary of strengthened cooperation with the U.S., Lee said, "China is geographically close and a very important economic partner in terms of trade and overseas investment," adding, "Korea is striving to strengthen a mutually beneficial relationship with China." He assessed that the situation would not deteriorate to the point of economic retaliation like the THAAD incident.

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