Top conglomerates call for Cheong Wa Dae support to overcome virus

From left, senior presidential secretary for policy Kim Sang-jo, Bank of Korea Governor Lee Ju-yeol and senior presidential secretary for economic affairs Lee Ho-seung speak before an emergency meeting on economic matters at Cheong Wa Dae, Wednesday. Yonhap

Gov't urges Samsung, Hyundai, LG, SK, Lotte to retain jobs

By Nam Hyun-woo

Leaders of Korea's top five conglomerates asked Cheong Wa Dae and the government to assist them with more supportive measures for businesses.

Senior presidential secretary for policy Kim Sang-jo on Wednesday had a breakfast meeting with senior executives of Samsung Electronics, Hyundai Motor, SK, LG and Lotte to discuss what the presidential office and the government could do for industries hit heavily by the COVID-19 pandemic.

Samsung Electronics President Lee In-yong, Hyundai Motor President Kong Young-woon, SK Holdings CEO Jang Dong-hyun, LG Group Vice Chairman Kwon Young-soo and Lotte Group Vice Chairman Hwang Kag-gyu attended the meeting in the Four Seasons Hotel in downtown Seoul.

“The meeting was held to listen to businesses' difficulties and share government policies” regarding the COVID-19 outbreak, a Cheong Wa Dae official said, stressing that listening to businesses' opinions is “routine work for Kim.”

According to sources, the attendees asked for Cheong Wa Dae and the government to provide comprehensive support across industries, including those related to businesses' liquidity management.

“Attendees at the meeting shared their ideas and thoughts on businesses' desperate efforts to secure liquidity,” a high-ranking industry official said. “Specifically, they expressed that it was necessary for the government to purchase corporate bonds and to extend other types of short-term financial relief. Also, there have been requests for corporate tax cuts and other indirect support.”

Their demands are in sync with businesses' calls for the government to act swiftly to offer “sufficient liquidity” on the aviation, automotive, steel, refining, petrochemical and other industries, all of which are considered to be the country's economic backbone in terms of employment and investments.

Along with the financial relief, businesses have been requesting the government to possibly loosen restrictions on overseas business travel and ease labor regulations enabling companies to manage their workforce more efficiently through the Korea Chamber of Commerce & Industry and respective industry lobby groups.

“With China showing some signs of recovery, the attendees expressed their hopes the government could help to normalize logistics and air travel between Korea and China, so businesses can resume operations at their plants in China,” another ranking industry official said.

According to Samsung Electronics, Wednesday, it sent approximately 200 semiconductor engineers to China in a bid to assist the expansion of the company's semiconductor plant in Xi'an. The Chinese government has barred almost all foreigners' entry into the country, but Samsung Electronics was granted “special” admission through negotiation with local authorities.

During the meeting, presidential secretary Kim also explained a planned government relief package, including a 40 trillion won ($32.4 billion) fund for key industries and other policies on helping firms to retain employees. Especially, Kim put emphasis on the top conglomerates' role in overcoming the current economic crisis, such as maintaining job security, according to the sources.

Hours after their meeting, President Moon Jae-in held an emergency meeting on economic matters and announced a 40 trillion won relief packae for a job protection scheme worth 10 trillion won to cushion the COVID-19 impact on the country's job market.

“The country's backbone industries are under threat, and a growing number of companies are finding it difficult to overcome difficulties with temporary aid,” Moon said during the meeting.