The top 10 business groups announced that they will invest approximately KRW 270 trillion in non-capital regions over the next five years and newly hire 51,600 people this year. This follows President Lee Jae-myung’s request to “increase youth hiring opportunities and expand regional investment.”

At the “Corporate Meeting on Youth Jobs and Expanded Regional Investment” held on the 4th, President Lee met with the heads of the top 10 business groups and stated, “It would be desirable if the fruits of growth could be widely shared, warming small and medium-sized enterprises, regional areas, and the younger generation newly entering our society.” He continued, “The government has decided to establish a new axis of regional development under what is called a ‘5 Poles, 3 Special Zones’ system and will concentrate investment there, so we ask that companies also keep pace with this direction.”

The meeting was attended by Samsung Electronics Chairman Lee Jae-yong, SK Vice Chairman Choi Chang-won, Hyundai Motor Group Chairman Chung Eui-sun, LG Chairman Koo Kwang-mo, Lotte Chairman Shin Dong-bin, POSCO Chairman Jang In-hwa, Hanwha Vice Chairman Kim Dong-kwan, HD Hyundai Chairman Chung Ki-sun, GS Chairman Huh Tae-soo, and Hanjin Chairman Cho Won-tae.

President Lee referred to the introduction of a “weighted support system” to increase policy support for regions far from Seoul, as well as the enactment of a special RE100 (100% use of renewable energy) law, noting that there are more opportunity factors in non-capital regions. He emphasized, “Before long, there may be a significant difference in energy prices between the capital region and other regions, and we intend to substantially improve infrastructure such as education, culture, and basic facilities that are currently lacking in the regions.”

The business community responded with large-scale regional investment plans. Ryu Jin, chairman of the Federation of Korean Industries (FKI), said, “The top 10 business groups are planning regional investments of approximately KRW 270 trillion over the next five years,” adding, “If we include all other investments, the total will reach around KRW 300 trillion.” According to the Blue House, KRW 66 trillion of this is expected to be invested this year.

The top 10 groups plan to focus their regional investments on advanced and strategic industries such as △semiconductor facilities △batteries △artificial intelligence (AI). Investment in high-tech industries is expected to further enhance the impact of investment, as it can create high-quality jobs that young people want. The FKI explained, “Major groups have designated areas outside the Seoul metropolitan area as core bases for their future businesses and are making preemptive investments there.”

The number of new hires by the top 10 business groups this year is estimated at 51,600, an increase of 2,500 from last year. Of these, 34,200 people, or 66%, will be new graduate recruits. Chairman Ryu stated, “It is most important to break the vicious cycle in which young people move to the capital region in search of jobs while population declines in the regions raise concerns about local extinction,” and added, “We ask the government for bold support so that corporate recruitment and employment plans can proceed without setbacks.”

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