Top Korean business heads set to visit India, Vietnam in search for opportunities

SEOUL : The leaders of Korea’s top conglomerates will likely visit India and Vietnam later this month as they seek business opportunities to hedge against uncertainties stemming from the Middle East crisis and rising protectionist policies.

According to industry officials Monday, the Federation of Korean Industries (FKI) and the Korea Chamber of Commerce and Industry (KCCI) have formed business delegations to visit India and Vietnam, respectively, later this month.

The delegations will be comprised of up to 200 companies each and will participate in business forums with local companies.

Samsung Electronics Executive Chairman Lee Jae-yong, Hyundai Motor Group Executive Chair Chung Euisun and LG Group Chairman Koo Kwang-mo are expected to join the delegation to India, given the importance of the market to their businesses.

For Samsung Electronics and LG Electronics, India is a critical market for IT devices and home appliances, as it has a population of 1.4 billion and its economy continues to grow. The country is also an important manufacturing base for the two electronics giants.

Samsung Electronics operates production bases in Noida and Tamil Nadu, manufacturing smartphones and home appliances, and also runs its largest research and development center outside Korea there. LG Electronics has identified India as a key pillar of its Global South strategy and operates plants in Noida and Pune, while currently building a new facility in Sri City. LG Electronics’ Indian unit is listed on the local stock exchange.

Hyundai Motor has also listed its Indian unit on the local stock exchange and plans to expand production capacity at its Pune plant to reach 1 million units annually in India.

The Vietnam delegation is expected to be joined by the three chairmen, along with SK Group Chairman Chey Tae-won. SK Innovation has secured a large-scale project in Vietnam worth $2.3 billion, including the construction of a gas-fired power plant and a liquefied natural gas terminal, as it ramps up its energy infrastructure business.

Samsung Electronics manufactures nearly half of its global smartphone shipments in Vietnam, while Samsung Display’s Vietnam unit also operates in the country. LG Electronics, LG Innotek and LG Display run global production bases in Vietnam through 12 affiliates.

“Emerging markets such as India and Vietnam are gaining traction as hedges against supply chain uncertainties stemming from Middle East risks and protectionist policies,” an industry official said.

“The visits are expected to help reduce uncertainties and explore synergies with local partners.”

Source : The Korea Times