Global Economy Shows 'Red Flags'... Heads of 5 Major Groups Head Abroad

Touring Overseas Sites and Planning Second Half Management Strategy
Full-Scale Effort to Attract Busan Expo

[Asia Economy Reporter Han Ye-joo] As red flags are raised across the global economy, the heads of the five largest conglomerates are accelerating their on-site overseas management efforts. This is due to the need to proactively respond to a host of pressing issues, including supply chain instability caused by US-China tensions, the prolonged Russia-Ukraine conflict, global inflation, interest rate hikes, sharp currency fluctuations, economic slowdown, and strengthened domestic protectionism.

Taking advantage of a rare holiday, the conglomerate leaders plan to inspect their overseas business bases and focus on business planning for the second half of the year and next year. In particular, they intend to actively support the bid for the 2030 Busan World Expo by making time during their overseas trips.

According to industry sources on the 10th, Samsung Electronics Vice Chairman Lee Jae-yong, who was rumored to visit Europe, first visited Mexico on the 6th. On the 8th (local time), Lee met with President Andr?s Manuel L?pez Obrador at the National Palace in Mexico City and requested support for the Busan Expo bid.

President L?pez Obrador posted on Twitter that he had met with Vice Chairman Lee, received promotional materials for the Busan Expo, and discussed investment plans in the construction and energy sectors. The meeting was attended by Samsung Electronics officials, including Vice President Cho Hong-sang (Head of Latin America), as well as Mexican government officials.

As a special presidential envoy for the 2030 World Expo Busan bid, Vice Chairman Lee plans to continue his promotional activities by visiting the Mexico TV and home appliance factories, followed by visits to Panama and the United Kingdom. It is expected that if Liz Truss, the current Foreign Secretary and a leading candidate for the next UK Prime Minister, assumes office, Lee will visit the UK to actively participate in the Expo bid.

In the business community, there are expectations that Vice Chairman Lee will play a role similar to that of the late Chairman Lee Kun-hee in national event hosting efforts. Previously, Chairman Lee Kun-hee played a decisive role in securing the 2018 PyeongChang Winter Olympics as a member of the International Olympic Committee (IOC).

There are also forecasts that Vice Chairman Lee’s travels will head to the Americas around the time of the United Nations General Assembly later this month. This suggests that Lee, leveraging his position as a special envoy for the Busan Expo, could fully reactivate his network with top political and business leaders in the United States. In this case, he might directly coordinate the groundbreaking ceremony for the foundry (semiconductor contract manufacturing) plant in Taylor, Texas, which has been repeatedly delayed.

Choi Tae-won, Chairman of SK Group and also Chairman of the Korea Chamber of Commerce and Industry as well as co-chairman of the Busan Expo bid committee, is expected to visit Japan soon to promote the Expo bid. Chairman Choi is arranging a meeting with Japanese Prime Minister Fumio Kishida and is likely to visit Osaka, the host city of the 2025 Expo.

Chairman Choi is also expected to review supply chain and investment issues related to future industries such as semiconductors and electric vehicles in the United States during the UN General Assembly. Earlier, on July 26, Choi held a video conference with US President Joe Biden and announced a new investment plan worth $22 billion (approximately 29 trillion KRW) in the US.

Hyundai Motor Group Chairman Chung Eui-sun embarked on a business trip to the US on August 23 to respond to the US Inflation Reduction Act (IRA). Following the enactment of the IRA, which excluded Hyundai and Kia electric vehicles from subsidy eligibility, this trip aims to review overall business issues in the US and seek countermeasures.

LG Group Chairman Koo Kwang-mo is also scheduled to visit Poland in September, where LG Electronics and LG Energy Solution have production plants, to oversee the group’s core businesses such as batteries on-site.

With the presidential office reportedly considering appointing the heads of the five major conglomerates as special envoys for the Busan Expo, it is expected that Chairman Chung and Chairman Koo will also contribute to the Expo bid efforts.

Lotte Group Chairman Shin Dong-bin is currently reviewing local business operations in Vietnam together with his eldest son Shin Yu-yeol (Japanese name Shigemitsu Satoshi), Executive Director of Lotte Chemical’s Japan branch. Industry insiders predict that he may also lead events promoting the Lotte brand in the US during the UN General Assembly.

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