Conglomerate leaders seek new business opportunities in Czech Republic

President Yoon Suk Yeol sings the national anthem during a dinner organized for Olympic team athletes at a hotel in Seoul, Thursday. From right are first lady Kim Keon Hee, Yoon, Hyundai Motor Group Executive Chair Chung Euisun and women's handball team player Song Ji-young. Joint Press Corps-Yonhap

Leaders of Korea’s major conglomerates are seeking to create fresh business opportunities in Crezh Republic, particularly in the eco-friendly vehicle and energy sectors, according to company officials, Sunday.

They hope to elevate their strategic alliance with the European country by accompanying President Yoon Suk Yeol’s upcoming state visit there. As part of this initiative, top executives from Samsung, Hyundai Motor, LG, and SK will travel to Prague, the Czech Republic’s capital, in September to enhance their business relationships with the Czech government and local companies.

Hyundai Motor Group is one of the most proactive business partners for the Czech Republic, operating a major factory in the eastern village of Nosovice with an annual manufacturing capacity of 350,000 vehicles.

The facility is Hyundai Motor’s key manufacturing base in Europe, producing more than 345,000 vehicles in 2023. Sales reported from the factory reached more than 11 trillion won ($8.27 billion) and its net profit also came in at almost 800 billion won during the same period.

Hyundai Motor CEO Chang Jae-hoon will likely join the president’s visit to the Czech Republic on behalf of the group’s Executive Chairman Chung Euisun. Chang is widely expected to inspect the plant and look for additional revenue sources there.

“The Czech Republic is a very important market for Hyundai Motor, as the manufacturing facility serves as its key export base across Europe,” an industry official said. “The carmaker has also set a goal of converting the factory into a facility dedicated to electric vehicles (EVs) by 2035 to strengthen its presence in the European eco-friendly vehicle industry.”

Samsung Electronics Executive Chairman Lee Jae-yong gets into a car after returning to Seoul from the Paris Olympics, Aug. 7. Yonhap

LG Group Chairman Koo Kwang-mo will also accompany Yoon on his upcoming visit to the Czech Republic.

Given the Czech government's repeated efforts to attract investments from LG Energy Solution, all eyes are on whether Koo's upcoming trip will yield tangible results. The Czech Republic is reportedly interested in having the LG affiliate establish a secondary battery factory in the country.

Samsung Electronics Executive Chairman Lee Jae-yong is also anticipated to participate in various business meetings during his upcoming visit to the Czech Republic. Although the company currently does not operate any manufacturing facilities there, the Czech Republic is expected to welcome Samsung’s investments in the battery sector. Samsung SDI, a battery affiliate of Samsung Group, is recognized as one of the world’s leading EV battery manufacturers, alongside LG Energy Solution and SK On.

SK Group Chairman Chey Tae-won will also search for new business areas by joining Yoon’s state visit to the Czech Republic.

Last month, Korea Hydro & Nuclear Power (KHNP) was selected as a preferred bidder for a 24 trillion won project to build two nuclear reactors in Dukovany, Czech Republic. This milestone has prompted Korea to propose expanding its collaboration with the Czech Republic beyond nuclear power plants to include various other industrial sectors.