SEOUL/GYEONGJU, South Korea – South Korea’s most influential business magnates are set to hold a high-stakes meeting with Chinese President Xi Jinping during his state visit, timed with the Asia-Pacific Economic Cooperation (APEC) Summit. This rare encounter, Xi’s first state visit to South Korea in 11 years, is fueling optimism that the two nations will forge closer cooperation, particularly in critical high-tech sectors like semiconductors, batteries, and electric vehicles, to stabilize crucial global supply chains.
The meeting, likely to take the form of a dinner on November 1st, will gather the heads of South Korea's 'Big Four' conglomerates: Lee Jae-yong (Executive Chairman of Samsung Electronics), Chey Tae-won (Chairman of SK Group), Euisun Chung (Chairman of Hyundai Motor Group), and Koo Kwang-mo (Chairman of LG Group). Also expected to attend is Kim Dong-kwan (Vice Chairman of Hanwha Group).
On the Chinese side, the guest list features heavyweight executives, including Zeng Yuqun (Chairman of CATL), the world's largest battery manufacturer; Li Fanrong (Chairman of Sinochem), a state-owned energy and chemical corporation; and Richard Liu (Founder of JD.com), a leading e-commerce platform.
A Turning Point for Strained Economic Ties
The long-awaited state visit by President Xi is widely viewed as a potential turning point for the often-strained economic relationship between Seoul and Beijing. Business circles anticipate that the discussions will accelerate efforts to restore and strengthen supply chains in future-oriented industries.
Key areas for potential cooperation include:
Semiconductors and Batteries: Securing stable supply of core components and raw materials for these critical sectors, where South Korean firms are global leaders and Chinese companies are rapidly expanding their influence.
Electric Vehicles and AI: Exploring joint ventures, technology development, and shared investment opportunities in areas like Artificial Intelligence (AI), digital transformation, and the expansion of new and renewable energy.
A particularly sensitive topic is the supply of rare earth elements and minerals, where South Korea has a high dependency on China, which accounts for an estimated 70% of global rare earth production. The resolution of China’s export controls on these materials is a vital concern, as any supply disruption could severely impact South Korea's main industries, including semiconductors and automobiles.
Balancing Act Under the US-China Rivalry
While the meeting carries significant economic potential, some analysts remain cautious, suggesting that substantive agreement on detailed cooperation plans may be difficult given the escalating strategic competition between the US and China. One business official noted that for now, the primary achievement may simply be in successfully managing the symbolic turning point for bilateral relations.
Nevertheless, the direct engagement between President Xi and South Korea's top business leaders, following an 11-year hiatus, signals a mutual desire to redefine and solidify an economic partnership that remains critical to the prosperity of both nations. The world's attention is focused on whether this high-level dialogue can successfully navigate geopolitical headwinds to establish a new framework for sustained co-existence and co-prosperity in the global economy.
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