Conglomerate leaders set to renew biz push in China

President Lee Jae Myung applauds with business leaders on the sidelines of this year's Asia-Pacific Economic Cooperation summit in Gyeongju, North Gyeongsang Province, Oct. 31. From left are Naver founder Lee Hae-jin, SK Group Chairman Chey Tae-won, Nvidia CEO Jensen Huang, Lee, Samsung Electronics Executive Chairman Lee Jae-yong and Hyundai Motor Group Executive Chair Chung Euisun. Yonhap

Major conglomerate leaders are set to embark on a rare joint business trip to China in early January, as part of efforts to restore their supply chain partnership with the world’s second-largest economy in key strategic future growth areas such as chips, batteries and electric vehicles (EVs), industry officials said Wednesday.

The heads of Samsung, SK, LG and Hyundai Motor will also seek more business ties with their Chinese partners by accompanying President Lee Jae Myung’s envisaged visit to China. A group of some 200 business tycoons will fly to Beijing as a business delegation.

It will be the first Korean business delegation to China in six years since December 2019, with Korea Chamber of Commerce and Industry (KCCI) Chairman Chey Tae-won set to lead the group.

The Korean business leaders will be tasked with reviving their partnerships with Chinese firms amid decreased trade friction between the United States and China. Korea’s business circle has remained highly vulnerable to the prolonged trade war between the world’s two largest economies.

Samsung Electronics Executive Chairman Lee Jae-yong may seek deeper business ties in chips and in-vehicle infotainment systems with his Chinese partners during the upcoming visit to Beijing. In March, Lee met with Xiaomi Chairman Lei Jun during his business trip to the Chinese firm’s automotive plant in Beijing. He also discussed potential cooperation in vehicle electronics at a meeting with BYD Chairman Wang Chuanfu.

Chey, who also serves as chairman of SK Group, will focus on successfully hosting the Korea-China business forum on the sidelines of Lee’s planned summit with Chinese President Xi Jinping.

Samsung Electrocnis Executive Chairman Lee Jae-yong attends a gala dinner for the Asia-Pacific Economic Cooperation summit in Gyeongju, North Gyeongsang Province, Nov. 1. Yonhap

LG Group Chairman Koo Kwang-mo is widely expected to join the delegation and seek potential partnerships with Chinese firms, to mitigate supply chain risks for key business areas such as batteries.

Hyundai Motor Group is also renewing its push for a rebound in China. Despite tight competition against Chinese EV makers, Hyundai Motor is on track to achieve a major sales rebound there. According to data from the carmaker, it sold a total of 12,016 vehicles in China in November, up 71.7 percent from the previous year.

In October, the carmaker also started sales for its Elexio all-electric SUV, exclusively designed for China. The launch of the vehicle demonstrates Beijing Hyundai’s renewed commitment to expanding its presence there.

Hyundai Motor Group Executive Chair Chung Euisun is likely to hold closed-door meetings with top management from China’s major battery firms, including CATL Chairman Robin Zeng and other leaders in China’s auto and battery industry.

“Business tycoons’ China visit may revive momentum for bilateral partnership, as both countries have so far remained lukewarm in terms of business cooperation amid rapidly escalating global protectionism,” an industry official said.