Seoul: President Lee Jae Myung on Wednesday called upon major business conglomerates to support the government's initiative for balanced regional development, resulting in a commitment of 270 trillion won (US$186 billion) in regional investments over the next five years.
According to Yonhap News Agency, President Lee addressed the leaders of major conglomerates, including Samsung Electronics Chairman Lee Jae-yong, Hyundai Motor Group Executive Chair Euisun Chung, and LG Group Chairman Koo Kwang-mo, during a meeting to discuss job creation for young people and boosting regional investments. Lee emphasized the importance of sharing the benefits of economic growth across small and medium-sized businesses, regional communities, and the younger generation.
President Lee presented the government's plan to develop five major regional hubs and three special self-governing provinces. He urged companies to align their investment strategies with these regional development efforts. Lee highlighted the potential benefits of investing in regional areas due to advances in transportation and communication that have reduced the disparity between the capital and other regions.
Federation of Korean Industries Chairman Ryu Jin announced that the nation's top 10 conglomerates plan to invest 270 trillion won in regional cities and provinces over the next five years. Combined with other companies' regional investment plans, the total is estimated to reach around 300 trillion won.
Lee also addressed the challenges of securing land and resources like electricity and water for new production lines in the Seoul metropolitan area, suggesting that regional investments could be more advantageous. The government plans to enact legislation to support renewable energy industrial complexes and energy cities, giving greater priority to regions farther from Seoul in fiscal resource allocation and policy initiatives.
During the meeting, 10 major conglomerates shared their plans to hire a collective 51,600 employees this year, with 12,000 new recruits by Samsung and 8,500 by SK. Presidential secretary for public relations Lee Kyu-yeon reported to the media that Samsung Chairman Lee Jae-yong indicated the company's capacity to expand hiring due to a significant increase in operating profit last year. Both Samsung Electronics and SK hynix achieved record operating profits last year, driven by high demand for chips in AI applications.