South Korea’s President Leads 200 Business Leaders to Beijing for Economic Reset
South Korean President Lee Jae-myung will visit Beijing from Sunday to January 7, accompanied by over 200 business leaders. The delegation includes top executives from Samsung, SK Group, Hyundai Motor, and LG Group. The trip aims to restart economic talks between Korea and China after a period of strained relations.
Trade tensions have grown as Korean firms reduce their presence in China while increasing investments in the U.S. Meanwhile, Chinese investment in Korea has surged to a record $6.79 billion in 2024.
The visit follows years of declining Korean business activity in China. Between 2021 and 2025, the number of Chinese subsidiaries run by Korea’s top 10 conglomerates fell by 17%. Hyundai Motor and Kia have cut vehicle sales sharply due to unofficial restrictions and fierce competition from local automakers. Hyundai has even closed and sold some of its Chinese factories as demand weakened.
At the same time, Korean companies have shifted resources toward the U.S. The number of American subsidiaries held by major Korean firms nearly doubled in the same period. This reallocation reflects broader geopolitical pressures, particularly in the semiconductor sector. U.S. export controls now require yearly approval for shipping American-made equipment to Chinese chip plants, adding complexity for Korean firms operating in both markets. Chinese President Xi Jinping met with Samsung and SK hynix executives in 2024, highlighting tensions in the industry. Despite these challenges, Chinese investment in Korea jumped 147.4% year-on-year to $6.79 billion in 2024, the highest on record. No specific entrepreneurs were named as joining President Lee’s delegation in earlier reports, but the large business presence signals a push to rebuild economic ties.
The trip seeks to ease trade barriers and revive cooperation between the two nations. Korean companies face ongoing challenges, from U.S. export restrictions to shrinking market share in China. The outcome of these talks could shape future investment and trade strategies for businesses operating across both countries.
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