South Korean President Lee Jae-myung held back-to-back meetings with the chairmen of Hyundai Motor Group and LG Group this week to discuss global trade conditions and business concerns, according to the presidential office on Friday.
On Monday, Lee met with Chung Euisun, chairman of Hyundai Motor Group, followed by a sit-down with LG Group Chairman Koo Kwang-mo on Tuesday.
Their discussion covered a range of topics, including investment in the US, global trade, regional economic revitalization, R&D spending and strategies to address economic and business challenges, Kang Yoo-jung, presidential spokeswoman, said in a statement.
“President Lee will continue to engage closely with the corporate sector, maintaining what he described as a ‘one-team’ approach between public and private sectors,” Kang added.
The meetings came after US President Donald Trump announced new tariffs of 25% on South Korea, set to take effect on Aug. 1 unless the two countries reach a trade agreement before the deadline following a 90-day pause.
The move follows a 25% tariff on imported vehicles and automotive parts, along with 50% duties on steel and aluminum, introduced in April, which have already dealt a heavy blow to key units of LG and Hyundai.
Earnings at LG Electronics Inc. nearly halved in the second quarter on the back of the US tariffs.
Hyundai Motor Co. and its sibling Kia Corp. are expected to report double-digit falls in second-quarter operating profit due to the impact of the tariffs, according to market consensus.
At home, the country’s business groups are also facing regulatory headwinds.
Early this month, the National Assembly passed an amendment to the Commercial Act aimed at strengthening minority shareholders’ protections, despite strong opposition from business leaders.
The ruling Democratic Party is also moving to mandate the cancellation of treasury shares by listed companies as part of policy efforts to boost the stock market.
In his second week in office last month, Lee hosted his first meeting with the heads of the country’s top five conglomerates – Samsung, SK, Hyundai, LG and Lotte – alongside leaders of major business lobby groups.
At the meeting, Lee said companies are “at the heart of the country’s economic future” and that government policy would prioritize their continued growth. But he also emphasized the need for fairness and discipline in the market.
Meanwhile, Lee Jae-yong, chairman of Samsung Electronics Co., was acquitted on Thursday of all criminal charges, including accounting fraud and stock manipulation, by the Supreme Court.
By Yeonhee Kim
yhkim@hankyung.com
Jennifer Nicholson-Breen edited this article.
