[INTERVIEW] Siemens Korea CEO vows full support for Busan's World Expo bid

Siemens Korea CEO and Korean-German Chamber of Commerce and Industry (KGCCI) Vice Chairman Chung Ha-joong speaks during an interview with The Korea Times at his office in Seoul, May 2. Courtesy of KGCCI

This article is the third in the series of interviews with CEOs of foreign companies operating in Korea ― ED.

KGCCI to promote Korea's 2nd-largest city during next month's forum in Frankfurt

By Park Jae-hyuk

When Siemens came to Korea for the first time in the 1950s, its mission was to help rebuild the war-torn country through projects to install power generation facilities, chemical plants, cement factories and cables.

About a half-century after the opening of Siemens' liaison office here in 1967, Korea has grown to become one of the world's top 10 economies, playing major roles in the international community.

As one of the contributors to Korea's economic development, the German company's local subsidiary is now making all-out efforts for the Asian country to host the World Expo 2030 in its second-largest city, which is also a base for Siemens' infrastructure business here.

Siemens Korea CEO Chung Ha-joong told The Korea Times in a recent interview that he has communicated with German leaders to support Busan's World Expo bid, as the city came up with a powerful and appropriate theme for the global event ― "Transforming Our World, Navigating toward a Better Future."

"As a Korean, it is natural for me to hope for Busan to host the World Expo 2030," he said. "As one of the businesspeople working in German companies here, I think it is important to declare full support for Busan's bid."

Chung, who is also the vice chairman of the Korean-German Chamber of Commerce and Industry (KGCCI), accompanied KGCCI President Martin Henkelmann on a visit to Busan in February and gave Busan Mayor Park Heong-joon a letter showing the chamber's support for the city's efforts.

"During The Korea Times' spring concert at Seoul Arts Center in March, I also tried to give foreign envoys a good impression of Busan," he said. "Whenever I have an opportunity, I have promoted the city to global leaders."

He is also considering promoting Busan during the German-Korean Business and Investment Summit, which will be held in Frankfurt between June 28 and 29, on the occasion of the 140th anniversary of diplomatic ties between the two countries.

The event will be hosted by KGCCI, the Korea Trade-Investment Promotion Agency (KOTRA), the German Chamber of Commerce and Industry and the Frankfurt Chamber of Commerce and Industry, with the support of the Korea Chamber of Commerce and Industry and the German Asia-Pacific Business Association.

Siemens Korea CEO and Korean-German Chamber of Commerce and Industry (KGCCI) Vice Chairman Chung Ha-joong, right, poses with Busan Mayor Park Heong-joon, center, and KGCCI President Martin Henkelmann at Ananti Hilton Busan, Feb. 16, after expressing the chamber's intention to support the city's bid to host the World Expo 2030. Courtesy of KGCCI

Contribution to Korean economy

In addition to supporting the World Expo bid, Siemens Korea has made efforts to let export-reliant Korean companies enhance efficiency and productivity as global players, according to its CEO.

He said that Siemens CEO Roland Busch's visit to Korea between April 23 and 25 was also intended to boost the company's ties with Korean clients, including POSCO, SK hynix and Samsung C&T.

"POSCO and our company promised to strengthen their relationship as business partners," Chung said. "We received a plaque of appreciation from the leading steelmaker in Korea, in recognition of our support and contribution to its steel mill's restoration from damage caused by Typhoon Hinnamnor last year."

He added that the Siemens CEO talked with Seoul Mayor Oh Se-hoon about creating a smart city. Busch is an honorary citizen of Seoul, who previously worked as an adviser to the Korean capital.

"Economics textbooks say that the purpose of business is seeking profit and growth, but it is also important for us to fulfill our social responsibility," Chung said. "We have therefore offered meals for the underprivileged, making donations to the victims of the east coast wildfire, the Turkey-Syria earthquake and the Ukraine war."

POSCO Vice Chairman Kim Hag-dong, fourth from left, gives a plaque of appreciation to Siemens CEO Roland Busch, fourth from right, at POSCO Center in Seoul, April 25. Courtesy of POSCO

Mobile work for ESG management

Chung is the second Korean head of Siemens Korea in its 56-year history, but he is its only Korean CEO who spent most of his professional life at the company.

Based on his belief that communication and collaboration improve each individual's capability, the CEO said that he has tried his best to have more conversations with Siemens Korea employees, since his appointment as the CEO in October 2021.

The company's decision to continue a mobile work system, which was introduced in 2012, was part of efforts to enhance job satisfaction among its employees.

Unlike many companies that stopped allowing remote work after COVID-19 lockdown measures ended, Siemens and its Korean subsidiary still allow their employees to work from home for a couple of days per week.

"Work-from-home can be successful if managers can trust their employees," Chung said. "The mobile work system has not deteriorated our company's performance."

He also said the system has been helpful for its management considering the environmental, social and corporate governance (ESG) factors.

"By reducing occupancy rates in offices, we have been able to save utility costs," he said.

Siemens is one of very few companies worldwide to sign up at once for three initiatives led by the Climate Group ― RE100, aimed at sourcing 100-percent renewable power; EP100, aimed at owning or leasing only buildings that have net-zero carbon emissions; and EV100, aimed at having electric vehicles account for 100 percent of its fleet ― as well as the Science Based Targets initiative (SBTi), intended to limit global warming to 1.5 degrees Celsius, based on a science-based reduction pathway.

In order to clarify its guidelines for sustainability, the German firm also introduced a framework called "DEGREE," which stands for decarbonization, ethics, governance, resource efficiency, equity and employability.