Nam Hyun-woo has worked as a staff writer at The Korea Times since 2013, mostly covering business and politics. He currently belongs to the Business Desk where he covers topics such as emerging tech, AI, ICT and Korea's chaebol community. Prior to joining the team, he was the paper's correspondent for the presidential office of Korea during the Yoon Suk Yeol and Moon Jae-in administrations.
KCCI chief calls for 'synergetic' projects between Korea, US
Chey Tae-won, chairman of SK Group and the Korea Chamber of Commerce and Industry (KCCI), delivers his opening remarks during the Korea-U.S. Business Night Gala Dinner at the Great Hall of the Thomas Jefferson Building in Washington, Wednesday (local time). Courtesy of KCCI
By Nam Hyun-woo
HS Hyosung vice chairman promotes upcoming APEC event
Chey Tae-won, chairman of SK Group and the Korea Chamber of Commerce and Industry (KCCI), called for Washington’s greater incentives for Korean businesses that are considering additional investments into the United States, saying those incentives can be “things that the two countries can do together to create mutually beneficial outcomes.”
The chairman made the remarks after a Korean business delegation visited Washington last week and discussed strategic industrial cooperation between the two countries with high-ranking U.S. officials.
The delegation, organized by the KCCI and led by Chey, was the first Korean business delegation to engage with top White House and Department of the Treasury officials since Donald Trump's return to power last month. During their two-day stay there, 26 of Korea's top business leaders stressed their investments into the U.S. so far, while the U.S. highlighted the administration's efforts to ease regulations.
Their visits come amid the Trump administration's plans to impose high reciprocal tariffs on imports from its trade partners, some of which are key exports of Korean manufacturers. Along with the reciprocal tariffs, Trump announced 25 percent tariffs on steel and aluminum imports, as well as 25 percent on cars starting April 2, with more threatened to be announced soon about chips and pharmaceutical products.
During an impromptu interview with reporters on Friday (local time), Chey said that he is open to making additional investments into the U.S. However, he stressed that companies always assess investments based on business benefits.
“The Trump administration wants more manufacturing facilities on American soil, but we need incentives as well,” Chey said after attending a forum hosted by the Chey Institute For Advanced Studies in Washington.
When asked about the specifics of the incentives, he clarified that they do not necessarily mean subsidies or other financial supports.
“There can be various types of incentives,” he said. “What we need now is for Korea and the U.S. to work together in a way that benefits both sides … We are now facing a situation where simply relying on exporting goods is no longer sustainable. To navigate the current trend successfully, the two countries should work together and engage in large, collaborative projects that generate synergy.”
During the visit, Chey and other delegates proposed collaborative projects across six industries — shipbuilding, energy, small modular nuclear reactors, artificial intelligence (AI), future mobility and materials and equipment.
Chey said he believes his delegation has gained the best interests from the U.S. officials, because the proposals were “not about one side granting favors or simply accommodating requests” but “mutually beneficial as the two sides can work together.”
Chey's comments are interpreted as signaling that Korean businesses may consider investing more in the U.S., but it should also come with incentives that go beyond the conventional concept of who is spending money for whom.
Throughout their stay, Chey and the KCCI delegates emphasized that Korean companies have collectively invested over $160 billion in the U.S. over the past eight years, creating more than 800,000 jobs — most of which are well-paying manufacturing jobs with annual wages exceeding $100,000.
During a meeting with senior White House officials, Wednesday, they asked the White House to carry out predictable policies for more stabilized business activities.
The White House officials responded that a free market and the unrestricted flow of capital are key elements for rational investment, according to the KCCI. The officials also noted that excessive regulations that delay corporate investment decisions are being addressed, with efforts underway to improve the investment environment more efficiently.
A day after meeting with White House officials, the KCCI chairman spoke with a Treasury Department official about how Korean companies have contributed to the U.S. through their investments, tax payments and job creation.
According to the KCCI, the chairman urged the department to help finance Korean companies in the U.S. so that they can continue investing in strategically important sectors.
HS Hyosung Vice Chairman Cho Hyun-sang, center, talks with Korean Ambassador to the United States Cho Hyun-dong, left, and Matt Murray, the U.S.' senior official for the Asia-Pacific Economic Cooperation, during the Korea-U.S. Business Night Gala Dinner at the Great Hall of the Thomas Jefferson Building in Washington, Wednesday (local time). Courtesy of HS Hyosung
Reaching out to US lawmakers
On Wednesday evening, the KCCI hosted the Korea-U.S. Business Night Gala Dinner at the Great Hall of the Thomas Jefferson Building, attracting over 250 participants, including both countries' businesspeople, U.S. lawmakers, state governors and former Cabinet members.
During the event, delegates promoted the potential of Korean firms’ increased investments in the U.S. and the necessity of strategic industrial cooperation, while each company also held individual meetings with state government officials.
“Korea has been adding significant strategic values in areas such as semiconductors, mobility, batteries and shipbuilding,” said Cho Hyun-sang, vice chairman of HS Hyosung and a member of the delegation. “This can positively impact key industries like advanced materials, components and equipment.”
Cho noted that the two countries have witnessed global supply chain gaps in the U.S. in areas such as shipbuilding, advanced materials and components, and Korean companies are playing a role in filling these gaps.
“For example, while the U.S. has left a large footprint in mobility and the tire industry, it has experienced gaps in areas like interior, safety and tire materials,” Cho said. “Korean companies are filling these gaps with substantial investments and job creation … And we can create such a synergy in other regions and countries.”
During the dinner event, the delegation also promoted the upcoming Asia-Pacific Economic Cooperation (APEC) summit in Gyeongju, North Gyeongsang Province.
Matt Murray, the U.S. senior official for APEC, said in his congratulatory remarks that the forthcoming summit will be a great opportunity for Korea to showcase its leadership. The international event will take place from late October to early November, along with various side events, including the APEC CEO summit.
"During the delegation's visit, Cho, who chairs the APEC Business Advisory Council, encouraged U.S. business leaders to take part in the APEC CEO summit," the KCCI said.
Alongside Chey and Cho, the delegation also included Samsung Electronics President Kim Won-kyong, SK On Vice Chairman Yu Jeong-joon, SK Supex Council President Lee Hyung-hee, Hyundai Motor President Sung Kim and American Chamber of Commerce in Korea Chairman James Kim, among others.
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The delegation's recent trip coincided with Deputy Trade Minister Park Jong-won's visit to Washington last week.
According to the Ministry of Trade, Industry and Energy, he asked U.S. trade authorities to exempt Korea from Trump's steel and aluminum tariffs, as well as reciprocal tariffs, highlighting the Korea-U.S. Free Trade Agreement that has been in place for over a decade.
On Friday, acting President Choi Sang-mok instructed officials to more actively reach out to the U.S. and indicate the government's position on Washington's trade policy.
"We must actively engage with the new U.S. administration to effectively convey our stance and explore ways for cooperation," he said during a meeting with ministers and senior officials on economic affairs.