April 20, 2024

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[THE INVESTOR] President Moon Jae-in sat down with the heads of eight Korean conglomerates on June 27 for beer and a meeting as a part of a two-day discussion on how to improve the local business climate. The total number of firms invited was 15. 

The gathering was the first such official meeting between President Moon and the corporate sector. The 15 companies were chosen based on their assets. They included Hyundai Motor Vice Chairman Chung Eui-sun, LG Group Vice Chairman Koo Bon-joon, POSCO Chairman Kwon Oh-joon, Hanwha Group Vice Chairman Keum Chun-soo, Shinsegae Group Vice Chairman Chung Yong-jin, Doosan Group Chairman Park Jeong-won, CJ Group Chairman Sohn Kyung-shik, Ottogi Chairman Ham Young-joon and Korea Chamber of Commerce and Industry Chairman Park Yong-maan. 

President Moon Jae-in welcomes South Korea’s corporate leaders at Cheong Wa Dae. Yonhap.

From the government side, attendees included Deputy Prime Minister Kim Dong-yeon, Trade Minister Paik Un-gyu, Fair Trade Commission Chairman Kim Sang-jo, Presidential Chief of Staff Im Jong-seok, Presidential Senior Advisor for Policy Affairs Chang Ha-sung, Presidential Secretary for Economy Hong Jang-pyo, and Special Advisor Kim Hyun-chul.

The following is the full transcription of the meeting.

President Moon Jae-in: This is the first time our administration has invited you to Cheong Wa Dae. Every administration has traditionally held similar events, as there is nothing more paramount for a government than the economic well-being of the nation. However in the past, the meetings were conducted in a manner that was too formal and one-sided. We hope this time, you can unwind and have an open dialogue with us. There are no scripts, no specified topics, agendas, nor time limit in hopes that everyone will converse freely to discuss how to collaborate for economic progress. I also express my gratitude to you for taking time out of your busy schedules to attend. I bid everyone good health. Cheers and welcome.

Moon to KCCI chairman: Thank you for your work in bridging the gap between the government and businesses. I heard that you visited your grandson last week. Isn’t there a huge difference in seeing your grandchildren as against seeing your own children? Do you have pictures of your grandchildren on your phone?

 

President Moon Jae-in pouring beer into a mug. Yonhap

Moon to Hyundai Motor vice Chairman Chung Eui-sun: You have been the chairman of the Archery Association for quite a while now. At the last Olympics the team swept gold medals for all of the archery events, are you confident about the upcoming Olympics?

Chung: A mixed-gender team event has been added to the upcoming Olympics. We will try our best.

Moon: Due to the recent events with China the auto industry has taken a big hit, how are you holding up?

Chung: The situation is quite bleak at the moment but we hope to turn things around with the new opportunities being presented with technological advancements.

Moon to Doosan Group Chairman Park Jeong-won: I heard you played a bit of baseball back in the day?

Park: Oh no, not professionally. Just in an intermural league.

Moon: I played some pickup games in the neighborhood by myself (laughter). The Doosan Bears have been the champions for last couple of years running, how is the team doing this year?

Park: The team is currently sitting at third place but we expect to push ahead in the final stretch of the season as many of our key players are returning from injury.

 

President Moon toasting with business leaders. Yonhap

Moon to Hanwha Group Chairman Keum Chun-soo: How is the solar energy market in Korea?

Keum: Our market size is only about 5 percent. We are hoping that that number rises in the future.

Moon: Do Korea’s environmental conditions lack behind other nations’?

Keum: If there were more policies implemented to enhance the conditions …

Moon to LG Group Vice Chairman Koo Bon-joon: There’s a rumor that you are called the pizza CEO because you always order pizzas for your employees. Is that true?

Koo: I send pizzas to all our of global branches. This depletes the pizza supply of entire towns since at our manufacturing facilities, there are thousands of workers.

Moon: That must be great for company morale.

Koo: Yes they love it. I believe it does wonders for employee performance.

 

Bibimbap served at the gathering. Yonhap.

Moon to CJ Group Chairman Sohn Kyung-shik: Chairman Sohn, you have accompanied me on my trip to the US recently and have been an irreplaceable asset to the business community. As you are the most experienced elder among corporate leaders, I hope you can continue to be an exemplary mentor for other businesspersons. How is your health these days by the way?

Sohn: I’m doing quite well and my health has been exceptional.

Moon to POSCO Chairman Kwon Oh-joon: Considering the current political climate, are you concerned about steel exports to the US?

Kwon: For the time being we have pretty much abandoned our plans to export steel to the US. We are pivoting to try to come up with various alternatives.

Moon: There must be a huge vacuum considering how much steel is exported to the US. Will the company be OK?

Kwon: We exported about 1.3 million tons to the US. There are products we export directly and there are some that go through a second processing, which is about the same amount as direct exports. The second processing does not have a high anti-dumping rate yet, but it has increased significantly this year. There is a high demand in shale gas industries over there, which is why there hasn’t been an overall decrease, but we are worried as products by steel companies are unable to enter the US.

Moon: For an issue like this companies and associations needs to cooperate and work closely with government. I wonder if this is being adequately addressed to solve this problem.

Kwon: The government has been extremely supportive. So is the industry, prime minister and deputy prime minister.

 

President Moon Jae-in having a discussion with Ottogi Chairman Ham Young-joon, LG Vice Chairman Koo Bon-joon, CJ Chairman Sohn Kyung-shik, and POSCO Chairman Kwon Oh-joon. Yonhap

Moon to Ottogi Chairman Ham Young-joon: I’ve heard that the younger generation calls Ottogi Godtogi these days for its outstanding brand image involving hiring, inheritance, and social contribution. It has become a company younger people look up to. I hope the company continues to flourish and hope that you can share some of your know-how that can be adapted to our administration.

Moon Jae-in to Shinsegae Group Vice Chairman Chung Yong-jin: How is everything going?

Chung: Revenue has gone up and the economy is getting better.

Moon: It seems like consumer sentiment has improved.

Chung: At the start of the year we had set our projections fairly low but due to improved consumer sentiment and the summer heat, we are exceeding expectations at the moment.

 

President Moon proposing a toast to the group. Yonhap.

FTC Chairman Kim Sang-jo: How about the aftershocks from the THADD situation?

Chung: We don’t have a significant dependency on China, so we are fine. For other competitors, the effect seems to be graver.

Moon: Has that been resolved? Is it still chaotic? It appears as though there has been a decrease of Chinese tourists.

Chung: We operate a small hotel and the number of customers have definitely fallen. Also, the duty-free shops have taken a big hit.

Koo:  We make batteries for electric vehicles, but China has completely boycotted our products.

Moon: Speaking of electric cars, wasn’t Shinsegae one of the first companies to partner up with Tesla?

Chung: Yes, we were selected to host the first stores to sell Teslas in Korea. We are trying our utmost to be successful.

Moon: Have you had a chance to ride in one of the cars?

Chung: Yes I have. Once.

Moon: How far can you travel with a single charge?

Chung: About 380 km.

Moon: I’m not too sure about the others but doesn’t our nation have a competitive advantage in the battery market? (looking towards Koo Bon-joon).

Koo Bon-joon: China is trying to expand its battery technology and capabilities. So it’s allowing Japanese countries to enter the market, but it’s strongly boycotting Korean batteries by stating the models are inadequate for their products.

Sohn Kyung-shik: China seems to be doing the same (boycott) with Vietnam, with which relations aren’t all too good. 

President Moon invites the group inside for further discussion. Yonhap

Moon: This is an issue that we must work on together.

Koo Bon-joon: LG and Hyundai Motor have been collaborating on batteries but right now, we are unable to put our batteries in Hyundai cars at the moment because China won’t allow them to use Korean batteries.

Moon: It’s now time for a toast. For the economy to flourish, corporations have to flourish. For the wellbeing of our citizens and for prosperity! Cheers!

By Alex Lee (alexlee@heraldcorp.com)