ED Synergy between gov't, biz should extend to National Assembly
President Lee Jae Myung speaks with CEOs of the nation's top 10 conglomerates, including Samsung and Hyundai Motor, at Cheong Wa Dae in central Seoul, Wednesday, discussing youth unemployment and regional development. Yonhap
Aligning for cooperation between gov't, businesses should involve lawmakers
This week, President Lee Jae Myung and CEOs of the nation's top 10 conglomerates met yet again, leading to a pledge to create an estimated 51,600 jobs, of which 34,200 will be entry-level positions this year.
The conglomerate leaders responded positively to the president's request that they play a role in expanding the employment of young adults in Korea. The CEOs also vowed to invest up to 300 trillion won ($206 billion) for regional development, answering the president's call to increase spending in areas beyond the Seoul metropolitan area.
The CEOs present included Samsung Electronics Executive Chairman Lee Jae-yong; Hyundai Motor Executive Chair Chung Euisun; LG Group Chairman Koo Kwang-mo; Lotte Group Chairman Shin Dong-bin; and Poongsan Group Chairman Ryu Jin, who also serves as chairman of the Federation of Korean Industries.
They are on the front line of the Korean economy, which is currently fueled by strong exports of semiconductors and automobiles. The Lee administration has worked closely with the CEOs to hammer out the bilateral tariff deal with the United States last year, which mainly featured a 15 percent blanket tariff and the pledge to invest an annual $20 billion in the United States as part of a $350 billion package.
In the new global trade and security landscape, heavily influenced by the second Donald Trump administration, government and businesses rightly recognize that there is much to be gained from synergistic cooperation.
Trump's "America First" policies and rivalry with China have made it clear that trade cannot be separated from diplomacy or even defense. Inadvertently, these new government-businesses ties have carried over into domestic issues, with the government asking for help with state goals such as young adult employment.
It's a goal of vital importance, as those in their 20s and 30s remain out of the job market, with statistics showing that nearly 720,000 adults in that age range identified themselves as "not working" last year, the highest figure since 2003.
Some critics question the frequency of meetings between the CEOs and the government. There have been 12 such meetings since Lee took office on June 4, 2025, which amounts to 1.5 times per month. Detractors opine that the CEOs could have spent that time striving for innovative growth instead of simply meeting with leaders. Others see it as a newly rendered facet of state-led economic growth, which aligns with how the markets have become increasingly tied with national interests in the Trump era.
At the meeting, Lee lauded the businesses' role in advancing national interests and growth, noting in particular that Korea's bilateral ties with China improved after top Korean conglomerates who were part of his delegation were positively received during summit talks with Chinese President Xi Jinping in Beijing last month.
Cooperation between government and businesses makes sense. However, the administration must do more than pile heaps of praise and beckon CEOs for meetings. It must level the environment for these top conglomerates so that they can invest and recruit more personnel.
This includes bold deregulation and incentives for them to diversify throughout the nation instead of remaining solely within the Seoul metropolitan area.
On Friday, the government said that it plans to double national funding for infrastructure for companies investing in high-tech industrial complexes away from the capital. In real terms, it would cover expenses for roads, water facilities and power substations, thereby reducing corporate burden. These incentives, however, should not be used to coercively spread out companies in a bid to win more popular support ahead of the June local elections.
Moreover, the synergy between the government and top businesses has to be facilitated by the National Assembly's swift approval of the special bill to support Seoul's $350 billion investment in the U.S.
It is difficult to comprehend why the ruling Democratic Party of Korea took so long to advance the bill through the subcommittees and onto the floor, prompting Trump to threaten to raise tariffs again out of frustration with what he perceived as Korea's inaction. Higher tariffs would significantly impact the core sectors that the top 10 groups excel in, impacting their sales and earnings.
The government should illustrate a similar level of cooperation with the legislature, if its purpose is to serve the national interest amid a volatile trade and security landscape.