Lee Min-hyung joined The Korea Times in 2014 and has worked as a journalist mainly in Korea’s finance, tech and automotive industry. He specializes in content creation, breaking news and in-depth analysis currently on transportation and mobility. You can reach him via mhlee@koreatimes.co.kr.
Korean conglomerate leaders seek to bolster partnerships with Indonesia
President Yoon Suk Yeol, right, speaks during the Korea-Indonesia Business Roundtable at a hotel in Jakarta, Indonesia, Thursday. From right are Yoon, Hyundai Motor Group Chairman Chung Eui-sun, LG Group Chairman Koo Kwang-mo and Lotte Group Chairman Shin Dong-bin. Yonhap
By Lee Min-hyung
Hyundai Motor gears up for EV leadership in Southeast Asia
By Lee Min-hyung
Business leaders here have pledged to tighten their partnerships with Indonesia, identifying the country as a strategic base for their smooth expansion into the Southeast Asian market.
Top-ranking executives from Hyundai, Samsung, LG and Lotte underscored the importance of bolstering economic and business ties with the country while accompanying President Yoon Suk Yeol's visit to Indonesia.
Yoon and a group of 40 business leaders from both countries joined the Korea-Indonesia Business Roundtable, Thursday, and promised to elevate their relationship, speaking highly of the growth potential of the world's fourth-most-populous country. The business leaders included Hyundai Motor Group Chairman Chung Eui-sun, LG Group Chairman Koo Kwang-mo, Samsung Electronics President Roh Tae-moon, LS Group Chairman Koo Ja-eun and LX International President Yoon Chun-sung.
Representing the Korean business delegation, Chung delivered a celebratory speech during the roundtable, underscoring the possibility of developing bilateral business ties in more diverse areas in the future.
“A number of Korean companies will join hands with Indonesia's future in a variety of sectors ― such as IT, EV ecosystem, medical treatment, electrical infrastructure and fashion,” Chung said. “The two country's economic and business partnership will draw the attention of the world. The partnership will also deepen into state-of-the-art areas encompassing artificial intelligence, urban air mobility and even the hydrogen industry.”
LG Group established a home appliance manufacturing facility in Indonesia back in early 1990s and has since established a close business relationship with the country. LG Electronics opened an R&D center in Cibitung, Indonesia in July.
Hyundai Motor Group Chairman Chung Eui-sun, center, looks around Hyundai LG Indonesia Green Power battery cell factory in Indonesia, Thursday. Courtesy of Hyundai Motor Group
Hyundai Motor Group has also reaffirmed its strong willingness to become a top-tier electric vehicle (EV) manufacturer in Southeast Asia, identifying Indonesia as a base to realize its full-fledged electrification strategy, the company said Friday.
Indonesia is a strategic foothold for Hyundai, playing a vital role in Hyundai's aggressive inroads into the lucrative Southeast Asian market. The automaker's flagship IONIQ 5 EV has generated sensation in the Indonesian market, becoming an unmatched top-selling EV there.
Hyundai will be the only EV manufacturer with a completely localized production system there after Hyundai LG Indonesia (HLI) Green Power factory starts mass-producing EV battery cells next year. HLI Green Power is a joint venture established by the automaker and LG Energy Solution. Indonesia is the world's largest producer of nickel, a key material for batteries.
The Hyundai chairman visited the factory for the first time ahead of the roundtable. The HLI plant symbolizes bilateral economic and business partnership, according to the conglomerate.
Chung held meetings with Hyundai's key executives in the Southeast Asian region and discussed ways to speed up its group-wide electrification strategy. To boost the drive, Hyundai recently decided to set up more EV charging stations all across Indonesia.
“Hyundai Motor Group will keep expanding its footing in Indonesia and strengthen its corporate image as a leading electrification brand,” an official at the company said.