April 27, 2024

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[THE INVESTOR] A ranking Chinese state official visited Hyundai Motor and LG Display's headquarters in Seoul on March 8 to discuss business opportunities, amid heightened tension between South Korea and China over the deployment of Terminal High Altitude Area Defense system.

Wang Rongping, party secretary of the Communist Party of China Yancheng Municipal Committee, met with the automaker’s key executives, including Hyundai Motor Group Vice Chairman Kwon Moon-sik, the group’s Chinese adviser Seol Young-heung and Kia Motors President Park Han-woo, at the Seoul headquarters in Yangjae-dong, southern Seoul. 

They reportedly discussed Hyundai’s Chinese operations, as well as development plans for Kia’s Chinese joint venture Dongfeng Yueda Kia.

The city of Yancheng, Jiangsu Province, is critical for Hyundai’s China operations. Its affiliate Kia Motors operates three manufacturing facilities in the city, rolling out 890,000 units every year to account for 37 percent of total production in the country.

On the same day, Wang, the city’s top-ranking official, also visited LG Display’s headquarters in Yeouido, western Seoul.

According to reports, Wang has requested the LG officials to invest in his city. The display-making unit of LG Group currently operates a display module facility in Nanjing, another city in Jiangsu Province, but not in Yancheng.

Wang’s visit comes amid China’s growing retaliatory economic measures against South Korea’s decision to deploy THAAD in the region. China sees the US missile system, designed to protect against threats from North Korea, as a danger to its own security.

China’s strong opposition has spilled over to Korean businesses as local consumers have started boycotting Korean goods and services.

By Ahn Sung-mi (sahn@heraldcorp.com)