With Corona... CEOs Embark on Overdue Overseas Business Trips

Samsung Electronics, Hyundai Motor, SK Group, etc.
Investment and Infrastructure Review in Semiconductor, Electric Vehicle, and Battery Core Businesses

Chairman Chung Eui-sun of Hyundai Motor Group (from left), Vice Chairman Lee Jae-yong of Samsung Electronics, Chairman Chey Tae-won of SK Group

[Asia Economy Reporters Heungsun Kim, Yoonju Hwang, Jehun Yoo] As major countries including South Korea enter or prepare to implement phased daily recovery (With Corona), the heads of major domestic groups are also accelerating their overseas business activities. They are actively undertaking overseas business trips aimed at strengthening competitiveness in key industries such as semiconductors, electric vehicles, and batteries, including investments and inspections of local infrastructure.

According to the business community on the 20th, it has been confirmed that the flight used by senior Samsung executives for overseas business trips moved to Fairbanks International Airport in the United States on this day. This area is often used for flights operated for the purpose of repairing or inspecting aircraft used by the business community. Because of this, there is speculation that this flight might be a preliminary inspection ahead of Samsung Electronics Vice Chairman Lee Jae-yong’s trip to the U.S. The business community expects that Lee may embark on a business trip to the U.S. as early as the beginning of next month. This is due to the urgent matter of deciding the candidate site for the new U.S. foundry (semiconductor contract manufacturing) plant that Samsung Electronics is currently promoting.

Previously, Samsung Electronics has been negotiating incentive plans such as tax benefits with candidate sites including Taylor City and Austin City in Texas, as well as Arizona and New York. Among these, Taylor City is evaluated to be the frontrunner. Recently, the Taylor City Council finalized a resolution to provide support such as tax benefits to Samsung Electronics. It is expected that Vice Chairman Lee will meet with government officials on site to review the negotiation details and then make the final decision on the site. Additionally, since the Biden administration has requested information such as sales and customer trends from global companies including Samsung Electronics under the pretext of normalizing the semiconductor supply chain, it is also anticipated that related issues will be discussed.

This is not the first time that the possibility of Vice Chairman Lee’s overseas business trip has been raised. Since his release on parole on August 13, including the Chuseok holiday, there have been continuous forecasts related to this. However, due to controversies over employment restrictions raised by civic groups and overlapping court schedules, he has refrained from external activities. Recently, the atmosphere has changed. The day before, the British weekly magazine The Economist analyzed in a special article that for Samsung Electronics to leap to the No. 1 position in system semiconductors in the global semiconductor hegemony war, Vice Chairman Lee’s active management activities are necessary.

Hyundai Motor Group Chairman Chung Eui-sun is also intensifying overseas on-site management by visiting the U.S. and Indonesia consecutively. Chairman Chung, who visited the U.S. last week to inspect overseas businesses, is known to be heading next to Indonesia, the largest market in ASEAN. He is scheduled to attend the Jakarta International Expo (JI) held in Indonesia early next week. At this event, where Indonesia’s electric vehicle roadmap will be announced, Chairman Chung is expected to meet with Indonesian President Joko Widodo to discuss cooperation plans.

Indonesia is the largest ASEAN country in terms of economy and population size and is rich in natural resources such as nickel, manganese, and cobalt, which are key materials for batteries. Recently, it also presented a blueprint to develop itself as an ‘electric vehicle industry hub’ by 2030. Separately, Hyundai Motor Group is constructing a battery joint venture factory with LG Energy Solution in the Karawang area of Indonesia, covering 330,000 square meters, to target the ASEAN electric vehicle market.

SK Group Chairman Chey Tae-won will also visit the U.S. at the end of this month to reorganize its U.S. businesses including batteries and semiconductors. After meeting with Prime Minister Kim Boo-kyum at the SK Hynix Icheon campus on the 25th to discuss ways to expand youth employment, Chairman Chey will immediately depart for the U.S. and is expected to directly oversee the battery joint venture business with Ford Motor Company, the second-largest automaker in the U.S.

Previously, SK On, the battery business independent corporation spun off from SK Innovation, established the battery joint venture 'BlueOvalSK' with Ford and decided on an investment of approximately 13 trillion won. Accordingly, Chairman Chey is expected to visit Tennessee and Kentucky, where the battery joint venture factories will be located, and meet with Ford executives. Also, since SK Hynix is included among the companies required to submit semiconductor-related information by the Biden administration, it is anticipated that Chairman Chey will directly respond to this as well.

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