Latest news with #KoreaChamberof
Korea Herald
a day ago
- Business
- Korea Herald
President Lee calls on business circles to restore public trust
President Lee Jae-myung called for South Korea's business circles to mitigate public distrust toward them as he held talks with the entrepreneurs at his office on Friday. "I believe South Korea is no longer in a state where sustainable growth is impossible due to unfair competition, privileges to certain entities, or exploitations (of labor)," the president said during his opening speech at the meeting. "But there is still public distrust (toward South Korean businesses) remaining. I think it would be great to tackle that public distrust." Lee also promised to focus on pouring his administration's capacity into reducing red tape for the business circles, while saying the regulations related to fair business practices and public safety should stand. It was the first meeting between Lee and representatives of business lobby groups since he assumed the presidency on June 4. The meeting was attended by Chey Tae-won, chair of the Korea Chamber of Commerce and Industry; Sohn Kyung-shik, chair of the Korea Enterprises Federation; Ryu Jin, chair of the Federation of Korean Industries; Yoon Jin-sik, chair of the Korea International Trade Association; Kim Ki-moon, chairman of the Korea Federation of Small and Medium Enterprises and Choi Jin-shik, chief of the Federation of Middle Market Enterprises of Korea. Also joining the event were heads of several major South Korean conglomerates, including Samsung Electronics Executive Chairman Lee Jae-yong, Hyundai Motor Group Executive Chair Chung Euisun. LG Chair Koo Kwang-mo and Lotte Chair Shin Dong-bin.
![[Photo News] AmCham, KCCI, GM Korea to boost business ties](/_next/image?url=https%3A%2F%2Fwimg.heraldcorp.com%2Fnews%2Fcms%2F2025%2F05%2F08%2Fnews-p.v1.20250508.0e9bc5569d424528b64065941576fdcd_T1.jpg&w=3840&q=100)
Korea Herald
08-05-2025
- Automotive
- Korea Herald
[Photo News] AmCham, KCCI, GM Korea to boost business ties
From left: James Kim, chairman & CEO of the American Chamber of Commerce in Korea; Chey Tae-won, chairman of SK Group and the head of the Korea Chamber of Commerce and Industry; Hector Villarreal, president & CEO of General Motors Korea, pose for a photo during the signing of a tripartite memorandum of understanding to promote the 'Buy America' campaign. The AmCham-led campaign pledges mutual cooperation among all parties to expand consumer access to GM vehicles in Korea, promote the purchase of American-made products and contribute to a more balanced and mutually beneficial US-Korea trade relationship. (AmCham)
Korea Herald
27-04-2025
- Business
- Korea Herald
Korea Herald Roundtable for Pharma & Biotech
The Korea Herald will host the 2025 US Strategy Roundtable for Pharma and Biotech at the Korea Chamber of Commerce and Industry in Seoul on Tuesday. The roundtable will bring together key players in the biopharmaceutical industry, including leading firms and innovative biotech startups aiming to expand into the US and global markets. Former Justice Minister Kang Kum-sil, now a partner at One Law Partners, will deliver the opening address. The keynote presentation will be given by Kurt Tong, managing partner at The Asia Group, a Washington-based strategic and investment advisory firm. The two-hour session will provide a focused platform for discussing how Korea's biotech and pharma sectors can align with evolving US policy dynamics and strengthen cross-border partnerships. ▶ Date: April 29 (Tuesday) 9:30 a.m. - 12:00 p.m.
Korea Herald
26-03-2025
- Business
- Korea Herald
Korean investment offsets trade deficit with US: KCCI chief
Chey Tae-won says 80% of trade gap recycles into US economy As the widening US trade deficit has been the main impetus behind US President Donald Trump's sweeping tariff plans, South Korea, which contributes to the US' trade deficit, is bracing for potential impact, as Trump plans to announce "reciprocal tariffs" on trading partners next week. Many expect there will be increasing pressure from Washington for Seoul to address the trade imbalance. However, the numbers do not tell the full story, according to Chey Tae-won, chairman of SK Group, who serves as the head of Korea Chamber of Commerce and Industry, the nation's largest business group. Chey acknowledged that the US trade deficit with South Korea has grown considerably over the past eight years, spanning both Trump's first term and the Biden administration. 'But nearly 80 percent of the trade deficit amount has returned to the US in the form of foreign direct investment,' Chey told reporters Tuesday during a press conference held at the KCCI building in Seoul. 'Over the past eight years, South Korea has become No. 1 in terms of the amount of investments in the US,' said Chey. 'But being the top investors is like two sides of the same coin; trade deficits are bound to occur." This is because 70 to 80 percent of the investments were in greenfields, where companies build new manufacturing facilities from scratch, Chey explained. To build manufacturing facilities in the US, Korean firms had to import equipment, intermediate goods and machinery from Korea, as the US doesn't produce many of the components or machinery needed to do so. Chey said he relayed this explanation to White House officials, including US Secretary of Commerce Howard Lutnick, when he was in Washington last month, where he led a business delegation of executives from Korea's top 20 companies. At the time, Chey highlighted that Korean companies have invested $160 billion in the US over the past eight years, with a focus on the manufacturing sector. Besides reiterating their commitment to ongoing investment, Chey said the delegation proposed increasing imports of US goods to address any trade imbalance, particularly in the energy sector, such as LNG and crude oil. 'Since South Korea needs to import energy anyway, we can reduce our dependence on the Middle East. And if the US is willing to export, we are willing,' said Chey, stressing that the intention isn't to increase total energy imports, but to shift the sourcing ratio between countries. In addition to trade issues, South Korean companies proposed new areas of cooperation where both countries can benefit. The KCCI identified six potential areas where Seoul and Washington can create synergy: shipbuilding, energy, nuclear power, AI and semiconductors, mobility and materials and equipment. In response, Lutnick -- who had not yet been sworn in at the time of the meeting -- expressed a strong desire to attract more investment, saying the US would provide benefits and credit in return for foreign investments. When asked whether SK Group is considering additional investments in the US, Chey said existing plans would proceed as expected. 'There are already investments in the pipeline and those will go ahead as planned,' said Chey. 'There are factors like subsidies and other policy issues and external situations, but for now, it's 'business as usual,' and I don't see this as being linked to the tariff policy.' Beyond tariffs and trade, Chey also raised concerns about growing uncertainty within South Korea, both political and economic. 'Our greatest concern is that the unknown is getting too big,' said Chey. 'The more uncertainty expands, the harder it becomes for companies to make decisions, and eventually decision-making is delayed."
Korea Herald
09-03-2025
- Business
- Korea Herald
Korean firms on alert as shareholder activism hits record levels
83 percent of listed companies expect activism to rise if new corporate governance laws are passed: KCCI survey South Korean listed companies are increasingly wary of the growing influence of minority shareholder activism, fearing it could lead to excessive management interference and short-term profit-driven demands. As the annual general shareholders meeting season approaches, shareholder activism is intensifying like never before with a noticeable shift in dynamics, according to the Korea Chamber of Commerce and Industry. A KCCI survey revealed Sunday found that 120 out of 300 listed companies had experienced shareholder engagement over the past year. Shareholder engagement includes various activities aimed at directly influencing corporate governance, such as direct dialogue with management, shareholder letters and proposals. While institutional investors such as pension funds and private equity firms previously led these efforts, retail investors are now taking the forefront, the study showed. Among the 120 companies that reported shareholder engagement, 90.9 percent identified individual shareholders or coalitions of small shareholders as the primary participants. This was followed by pension funds at 29.2 percent and private equity and activist funds at 19.2 percent. Over the past decade, the proportion of shareholder proposals initiated by individual shareholders or shareholder alliances has nearly doubled, rising from 27.1 percent in 2015 to 50.7 percent in 2024, based on the electronic disclosure system. "Shareholder engagement was once considered the exclusive domain of activist funds, but with individual shareholders now taking the lead, we are witnessing a new phase in shareholder activism," said Kang Seok-gu, head of KCCI's research division. "Companies should actively engage in dialogue with general shareholders when their demands are reasonable. At the same time, policies that hinder shareholder returns, such as cooperative taxation regulations, need to be improved." When companies were asked about the specific demands raised through shareholder engagement, the most common requests included dividend increases (61.7 percent), share buybacks and cancellations (47.5 percent), appointment or dismissal of executives (19.2 percent), amendments to articles of incorporation such as the introduction of cumulative voting (14.2 percent) and other governance-related issues (10.8 percent). Regarding proposed amendments to the Commercial Act set to be reviewed by the National Assembly, 83.3 percent of listed companies anticipated that shareholder engagement activities would increase if the amendments were passed. KCCI noted that many companies are concerned about the potential consequences of these amendments, fearing they may provide a legal basis for excessive shareholder activism. At the same time, the existing legal framework already ensures sufficient shareholder rights through shareholder proposals and derivative lawsuits, so any expansion of directors' responsibilities should be approached with caution, the report analyzed. Looking at the long-term impact of rising shareholder activism, 66 percent of companies expressed concerns, citing increased conflicts between boards and shareholders due to excessive management interference (40.7 percent) and disruptions to large-scale investments and R&D projects caused by short-term profit-seeking (25.3 percent). On the other hand, 31 percent of respondents viewed shareholder activism positively, expecting it to enhance governance structures, improve management efficiency and increase transparency.
