South Korea

4대그룹 총수들, 시진핑 만난다…배터리·반도체 공급망 협력 논의할 듯

Hankyung | Local Language | News | Oct. 31, 2025 | Supply Chain Issues

Lee Jae-yong, chairman of Samsung Electronics, and other top executives from major Korean companies will meet with Chinese President Xi Jinping during his state visit to Korea, the first in 11 years, coinciding with the Asia-Pacific Economic Cooperation (APEC) summit. The meeting, likely a dinner on November 1st, will include prominent Korean and Chinese business leaders and government officials, aiming to discuss strengthening supply chain cooperation in key industries such as semiconductors, batteries, and electric vehicles.

Expected attendees include Korean conglomerate chiefs like Choi Tae-won of SK Group, Chung Eui-sun of Hyundai Motor Group, Koo Kwang-mo of LG Group, and Kim Dong-kwan of Hanwha Group. Chinese participants include Zeng Yuqin, chairman of CATL, Li Fanrong of Sinochem, and Liu Changdong of JD.com. This gathering is viewed as a potential turning point for Korea-China economic relations, which have experienced tension in recent years.

Industry experts anticipate that the meeting will accelerate efforts to restore supply chains between Korea and China in future-oriented sectors, including AI, digital transformation, and renewable energy. Joint technology development and investment opportunities are also expected to be discussed. Additionally, addressing China's export controls on critical materials, such as rare earth minerals vital to Korean industries, will be a significant but challenging issue, especially given geopolitical considerations involving the United States.

An industry insider suggested that a realistic outcome may be limited to establishing a positive shift in bilateral relations rather than immediate concrete agreements.

대미 투자 年200억弗 한도…외환시장 안정·투자금 회수 장치 확보

Newsis | Local Language | News | Oct. 31, 2025 | UndeterminedInvestor Sentiment

Korea and the United States have agreed on a $350 billion investment package comprising $200 billion in cash investments and $150 billion in shipbuilding cooperation. To minimize foreign exchange market disruption, the $200 billion cash investment will be implemented with an annual cap of $20 billion, phased over more than ten years. The shipbuilding segment includes investments and guarantees led by Korean companies, incorporating long-term ship financing aimed at reducing foreign exchange pressure.

A special purpose company (SPC) structure was established to compensate losses in specific projects through gains in others. Profit-sharing is set at 50-50 until repayment of principal and interest, with adjustments possible if full repayment is not achieved within 20 years. Korea will appoint project managers, and a joint investment committee will oversee project selection, prioritizing those with high recovery potential. The originally requested currency swap from the U.S. was excluded, as the phased investment plan reduces the need for short-term foreign exchange market intervention.

The agreement also includes tariff adjustments, lowering U.S. mutual tariffs to 15%, aligning with rates for Japan and the EU; automobile tariffs were cut from 25% to 15%, and semiconductor tariffs are favorable compared to Taiwan. These changes reduce export risks that have been a key economic concern for Korea. Experts view the arrangement positively, noting the annual investment cap as manageable for the foreign exchange market and praising the government’s negotiation outcomes while expressing some regret over the absence of a currency swap agreement.

Following the announcement, the won appreciated, with the won-dollar exchange rate dropping from 1,431.7 to 1,421.10 won. Additionally, Korea’s foreign exchange reserves rebounded to $410.2 billion in June 2025, its highest level in five months, signaling strengthened currency reserves amid these developments.

시진핑 "중국의 부흥 트럼프의 마가와 상충하지 않아"

Newsis | Local Language | News | Oct. 31, 2025 | Shifting Geopolitical Alliances

On October 30, 2025, Chinese President Xi Jinping and U.S. President Donald Trump met at Gimhae International Airport in Busan for a summit, marking their first meeting in over six years. President Xi emphasized that China's rejuvenation does not conflict with Trump's "Make America Great Again" (MAGA) agenda, suggesting that both countries can promote each other's success and achieve common prosperity.

Xi highlighted the ongoing communication between the two leaders, referencing multiple phone calls and letters since Trump’s election, which have helped maintain stable bilateral relations. He noted recent economic and trade negotiations in Kuala Lumpur that resulted in a basic agreement addressing major concerns, setting the stage for their summit discussions. Acknowledging inevitable differences due to unique governance systems, Xi stressed the importance of both leaders steering the relationship to stability and partnership.

President Xi also pointed to shared responsibilities in resolving global regional issues, emphasizing the potential for China and the U.S. to collaborate on major initiatives beneficial to both nations and the world. President Trump reciprocated by praising Xi as a respected leader and expressing optimism for strengthening their relationship. The meeting represents a significant step to revive and fortify China-U.S. ties after a prolonged period without direct engagement between the two presidents.