| Major chaebol heads sit in a row at a Korea-Japan Business Round Table held at the Keidanren Hall in Tokyo while President Yoon Suk Yeol gives remarks. From right are Samsung Chairman Lee Jae-yong, SK Chairman Chey Tae-won, Hyundai Motor Chairman Chung Euisun, LG Chairman Koo Kwang-mo, Lotte Chairman Shin Dong-bin, Kolon Honorary Chairman Lee Woong-yeul, Poongsan Chairman Ryu Jin, Hyosung Chairman Cho Hyun-joon on March 17. Korea Times file |
By Kim Hyun-bin
A total of 122 Korean business leaders, including the heads of major business groups, are accompanying President Yoon Suk Yeol on his state visit to the United States hoping to find better business opportunities in the world's largest economy, according to industry officials, Monday.
Topping their agenda is the Inflation Reduction Act (IRA), the CHIPS and Science Act and other regulations enacted by the Biden administration as the U.S. has been trying to restructure global supply chains by excluding China, which is Korea's largest trading partner.
The leaders need Yoon's help to minimize adverse effects of the U.S. regulations and secure better business terms when investing in high-tech industries ― semiconductors, batteries, electric vehicles (EV), bio and nuclear energy ― in the U.S., the officials said.
“Economic delegations are expected to offer opportunities to meet with U.S. political and business officials to establish new networks, expand business opportunities and promote cooperation in key industries against the backdrop of the semiconductor law and the IRA,” an industry official said on condition of anonymity. “With this visit as an opportunity, we hope that the U.S. IRA policy will work a little more favorably for Korean companies.”
The key agenda item in the economic field for the first state visit by a Korean leader to the U.S. in 12 years is to strengthen high-tech alliances, said Chu Jeong-hwa, director of the Korea Chamber of Commerce and Industry (KCCI).
“Our visit to the U.S. is the first state visit in 12 years, and it's also the 70th anniversary of our alliance. I hope that we can continue to strengthen our relationship as allies, particularly in light of various issues facing the U.S. and Korea. Although there are some issues related to semiconductors and the IRA, we have a strong desire to continue our alliance and enhance our partnership.”
| A message wishing for a successful U.S. state visit by President Yoon Suk Yeol is displayed on a digital billboard at K-POP Square in southern Seoul's Gangnam District. Yonhap |
Expectations for the expansion of Korea-U.S. economic cooperation are also high, as the 122-member economic delegation is the largest since the inauguration of this government. It includes Samsung Electronics Executive Chairman Lee Jae-yong, SK Group Chairman Chey Tae-won, Hyundai Motor Group Executive Chair Chung Euisun, LG Group Chairman Koo Kwang-mo, and Lotte Group Chairman Shin Dong-bin. Companies are expected to mobilize their global networks to support Yoon.
The government is focusing on three priorities ― supply chains, advanced science and technology and strengthening cooperation in attracting corporate investment. The goal is to enhance cooperation in the fields of semiconductors, batteries, electric vehicles (EV) and biotechnology as the supply chain crisis deepened due to U.S.-China decoupling and nationalism, strengthening supply chain cooperation with the U.S. has become crucial.
Cooperation in advanced science and technology with the U.S., a technological powerhouse in fields such as artificial intelligence (AI), space, quantum computing, advanced semiconductors and biotech, cannot be left out.
Attracting investment in Korea by American high-tech companies and expanding exports of Korean companies through Korea-U.S. business roundtables and forums are also major tasks during the state visit.
In addition, countering various subsidy-related bills in the U.S., which have increased the burden on Korean companies, such as the IRA and the CHIPS and Science Act, will be an important test bed for Yoon.
The government and companies are expected to appeal or seek compromise on semiconductor subsidy payment requirements, such as the difficulties of qualifying for IRA subsidies.