Big businesses pledge up to $206 bil. in regional investments over 5 years

President Lee Jae Myung speaks at a meeting with the heads of major conglomerates at Cheong Wa Dae in central Seoul, Wednesday. Yonhap

Korea’s major conglomerates have pledged up to 300 trillion won ($206 billion) in new regional investments over the next five years, responding to President Lee Jae Myung’s call to expand corporate spending beyond the Seoul metropolitan area.

The commitment was announced by Ryu Jin, chairman of the Federation of Korean Industries, at a meeting Wednesday with Lee and the leaders of the country’s 10 largest conglomerates, including Samsung Electronics Executive Chairman Lee Jae-yong, Hyundai Motor Executive Chair Chung Euisun, LG Group Chairman Koo Kwang-mo and Lotte Group Chairman Shin Dong-bin. The meeting, focused on youth employment and regional development, also drew top executives from SK, POSCO, Hanwha, HD Hyundai, GS and Hanjin, along with business association representatives.

President Lee Jae Myung greets Chung Euisun, right, executive chair of Hyundai Motor Group, ahead of a meeting with the heads of major conglomerates at Cheong Wa Dae in central Seoul, Wednesday. Yonhap

“FKI Chairman Ryu Jin said during the meeting that the 10 major groups plan to invest a combined 270 trillion won in regional areas over the next five years, while other large companies are expected to contribute an additional 30 trillion won over the same period,” Lee Kyu-youn, senior presidential secretary for public relations, said during a press briefing at the presidential office Wednesday.

Of the pledged total, 66 trillion won will be invested this year alone, up about 16 trillion won from 2025, as companies seek to revitalize regional economies and create job opportunities for young people living outside the capital. The 10 conglomerates also plan to hire 51,600 workers this year, 34,200 of them entry-level positions. By company, hiring targets include 12,000 at Samsung, 8,500 at SK, more than 3,000 at LG, 3,300 at POSCO and 5,780 at Hanwha, according to the briefing.

“The 10 conglomerates hired an additional 4,000 workers in the second half of last year and have expanded this year’s hiring plan by a further 2,500, bringing total employment 6,500 above their original 2025 plans, despite challenging economic conditions,” the senior presidential press secretary explained.

President Lee Jae Myung speaks during a meeting with the heads of major conglomerates at Cheong Wa Dae in central Seoul, Wednesday. Yonhap

Lee urged businesses to expand youth employment and corporate-backed education programs, while working closely with the government to promote entrepreneurship as the country moves toward a more startup-oriented economy.

“Many companies are already operating employment and education programs as part of their social contributions,” Lee said. “Starting this year, the government will significantly expand budget support for education programs and I hope the public and private sectors can work together more closely to enhance young people’s capabilities and expand job opportunities.”

Lee Jae-yong, left, executive chairman of Samsung Electronics, speaks with Shin Dong-bin, chairman of Lotte Group, during a meeting at Cheong Wa Dae in central Seoul, Wednesday. Yonhap

Lee also emphasized that Korea can no longer rely solely on traditional employment models and must accelerate efforts to foster a more entrepreneurship-centered economy.

“As we move toward becoming a startup-driven nation, dependence on conventional employment alone is no longer sufficient,” he said. “While individual companies are already making efforts, aligning those efforts with government support can make startup assistance more efficient and future-oriented.”

Lee additionally pointed out that future summit diplomacy will be organized more systematically around the needs of Korean companies and key economic policies.

"While summit meetings can be physically demanding, there is no better occasion for opening or deepening economic cooperation," the president said. “If economic groups and individual companies actively share which countries and sectors are most important at which times, we will reflect that in overseas visits and restructure summit agendas accordingly.”

Ryu Jin, chairman of the Federation of Korean Industries, speaks during a meeting at Cheong Wa Dae in central Seoul, Wednesday. Ryu sits next to Koo Kwang-mo, left, chairman of LG Group, and Lee Jae-yong, right, executive chairman of Samsung Electronics. Yonhap

The official added that there were no discussions about U.S. tariffs or investments in the United States.