(C) Business Standard

SEOUL – In a major move to revitalize local economies and address the youth unemployment crisis, South Korea’s top 10 business groups have committed to a massive investment of 270 trillion KRW (approximately $200 billion USD) over the next five years.

The pledge was made during a business roundtable titled "Corporate Meeting for Youth Jobs and Regional Investment Expansion," hosted by President Lee Jae-myung at Cheong Wa Dae on Tuesday. The meeting brought together the nation’s top business leaders to discuss strategies for balanced national development and future growth engines.

A Historic Commitment to Regional Growth
Ryu Jin, Chairman of the Federation of Korean Industries (FKI), announced the ambitious plan, stating that the top 10 conglomerates are prepared to lead the charge. "The top 10 groups are planning local investments worth about 270 trillion KRW over five years," Ryu said. He added that if other businesses are included, the total investment figure is expected to reach approximately 300 trillion KRW.

The investment will be concentrated in high-tech and strategic sectors located outside the Seoul metropolitan area. Key projects include the expansion of semiconductor manufacturing facilities, scaling up battery production and R&D capabilities, and building infrastructure for Artificial Intelligence (AI) transformation and carbon neutrality.

According to FKI estimates, this 270 trillion KRW injection is expected to generate a staggering 525 trillion KRW in production inducement and 221 trillion KRW in value-added effects over the five-year period, providing a much-needed lifeline to provincial economies that have struggled with depopulation and industrial stagnation.

Immediate Action and Hiring Surges
The plan is not a distant vision but an immediate priority. Lee Kyu-yeon, Senior Secretary to the President for Public Communication, briefed reporters that 66 trillion KRW—nearly a quarter of the total five-year budget—will be deployed within this year alone.

In tandem with the capital investment, the conglomerates revealed aggressive hiring plans for 2026. The 10 major groups aim to hire 51,600 new employees this year, an increase of 2,500 compared to last year. Notably, 66% of these roles (34,200 positions) are reserved for entry-level candidates, signaling a strong commitment to tackling youth employment challenges.

Samsung leads the recruitment drive with 12,000 new openings, followed by SK Group with 8,500. Hanwha Group (5,780), POSCO (3,300), and LG Group (over 3,000) also announced significant hiring targets.

Fostering the Future: Startups and AI
Beyond traditional infrastructure, President Lee and the business leaders discussed fostering a robust ecosystem for startups. The dialogue touched upon utilizing in-house ventures, creating startup funds, and building nationwide entrepreneurship platforms. Discussions also focused heavily on accelerating investments in robotics and AI to ensure South Korea remains competitive in the global Fourth Industrial Revolution.

President Lee emphasized the government’s role in supporting these private-sector initiatives, stating, "We will support your efforts with bold investments to revitalize local economies and create high-quality jobs for our youth."

The massive scale of this investment marks a pivotal moment in the government's efforts to achieve "balanced regional development." By moving high-tech R&D and manufacturing bases to the provinces, the administration and the business community hope to create a virtuous cycle of investment, job creation, and regional prosperity.

[Copyright (c) Global Economic Times. All Rights Reserved.]