Record number of business leaders accompany Moon on China visit

By Lee Min-hyung

The largest-ever business delegation will accompany President Moon Jae-in’s four-day state visit to China slated to begin today, raising expectations for a thaw in the ongoing icy economic relations between the two countries.

More than 260 business leaders and high-ranking executives from the nation’s top conglomerates - such as Samsung, LG, Hyundai and Lotte - and small- and medium-sized enterprises (SME) will join the delegation. They will participate in a series of economic events with their Chinese counterparts, discussing possible business partnerships and sharing plans for mutual growth, according to the Korea Chamber of Commerce & Industry (KCCI).

This comes amid the year-long economic and political tension between Seoul and Beijing over Korea’s decision to deploy the Terminal High Altitude Area Defense (THAAD) missile system here last year. It was aimed at defending the nation from North Korea’s possible missile threats.

But the Chinese government has since stepped up its criticism over the decision, claiming the THAAD radar can monitor mainland China and has been pushing retaliatory measures on Korean firms operating businesses there.

The business leaders include Lotte Vice Chairman Lee Won-joon. Lee will join the delegation, replacing its Chairman Shin Dong-bin who is facing a trail for alleged embezzlement.

The nation’s fifth largest conglomerate has been hit hardest by the THAAD aftermath, as the company offered the site for the THAAD system. For various reasons, China has suspended operations at more than 80 Lotte Mart discount stores in China.

Hyundai Motor is another Korean company suffering from China’s retaliation against the THAAD. The Chinese branch of the Seoul automaker reported a 40-percent drop in sales in the first half of the year, compared to a year ago. Hyundai Motor Vice Chairman Chung Eui-sun will join the delegation on behalf of his elderly father Chung Mong-koo who is the chairman of Hyundai Motor Group.

As the Chinese government has recently shown signs of partially easing economic tensions on South Korea, the delegation expects the upcoming business trip will help further improve the chilly relations between the two countries and get their business partnerships back on the right track.

Samsung Electronics Vice Chairman Yoon Boo-keun will also accompany Moon on behalf of Samsung Group heir Lee Jae-yong. Lee is in prison for corruption and bribery. Samsung is the nation’s top conglomerate in market capitalization.

Other business leaders will include SK Group Chairman Chey Tae-won, Hanwha Group Chairman Kim Seung-youn and LG Group Vice Chairman Koo Bon-joon.

“The largest-ever business delegation is being formed with a variety of events, including a Korea-China economic forum. A record number of 160 SMEs are included in the delegation,” said an official from the KCCI.