Samsung, SK LG to review investment plans amid growing uncertainties

[Photo by MK DB]

South Korea’s top conglomerates from Samsung to SK and LG will discuss detailed action and investment plans to address growing uncertainties from higher interest rates, the weakening Korean currency value and building inflationary pressures.

According to the industry on Sunday, Samsung Electronics will hold a global strategic meeting at the end of June, suggesting that the Korean tech giant is returning to its normal business schedule in which it held semiannual strategic meetings in June and December every year to discuss new growth engines and review each division’s performance before the Covid-19 pandemic. The conglomerate held the meeting once at the end of the year for the past two years due to the pandemic.

The upcoming meeting will be attended by major executive members online and offline, including Vice Chairman Han Jong-hee, who heads the DX division, and Kyung Kye-hyun, president of the DS division. The DX division, comprised of TV business, appliances, and health & medical equipment, is expected to discuss solutions to cope with the rising raw material and logistics costs amid geopolitical uncertainties, Russia’s war on Ukraine and China’s lockdowns.

The DS division, comprised of semiconductor and display businesses, is expected to discuss ways to deal with price decreases in DRAM and NAND flash devices, which are projected to continue until the second half of the year due to slowing demand.

[Photo by MK DB]

SK is also preparing a group-wide business meeting, which has been held in June every year to discuss corporate visions and business performances. Chairman Chey Tae-won and 30 heads of SK affiliates will attend the upcoming meeting to discuss the group’s priorities in eco-friendly business and transparent management.

LG already kicked off a strategic briefing session on Monday. Starting with its home entertainment division’s presentation, the company will host a slew of business meetings for a month. Through the one-month session, Chairman Koo Kwang-mo will discuss mid-term and long-term business plans with CEOs of LG affiliates.

The Korean chaebol business groups will embark on active discussion and review of their businesses after they have earmarked massive investments at home and abroad.

Korea’s No. 1 conglomerate Samsung Group vowed to invest 450 trillion won ($361.9 billion) over the next five years, and No. 2 SK Group 247 trillion won. No. 3 Hyundai Motor Group is spending 63 trillion won until 2025 and No. 4 LG revealed a groupwide plan to invest 106 trillion won locally for the next five years.

Hyundai Motor and Kia are said to hold a meeting for global operations in July. It has held the meeting biannually to discuss strategies for the global market with CEOs of its overseas operations.

[ⓒ Maeil Business Newspaper & mk.co.kr, All rights reserved]