Major Business Groups Opting for Cooperation

Samsung Electronics vice chairman Lee Jae-yong (second from right) fixes SK Group chairman Chey Tae-won’s mask strap before a meeting at Cheon Wa Dae on Dec. 27, 2021.

The top four South Korean business groups are focusing on mutual cooperation rather than competition. This trend is particularly conspicuous in the automotive industry with regard to future car development.

When it comes to those such as electric vehicles, it is not easy for a single automaker to cover every part. An automaker such as Hyundai Motor Group can develop the vehicles with greater ease by working with a battery manufacturer such as LG Energy Solution, Samsung SDI and SK On, an automotive electronics manufacturer such as LG Electronics and a chip manufacturer such as Samsung Electronics. For instance, LG Electronics is supplying Volkswagen with its infotainment system incorporating Samsung Electronics’ Exynos Auto V7 processor.

The trend has to do with increasing nationalism in major industries as well. Chinese companies are already collaborating very closely in developing future cars and the United States and Europe are also trying to better protect their production networks and supply chains.

Samsung Electronics and LG Display are showing signs of working together in the display industry, where Samsung Electronics and LG Electronics have long competed with each other. Samsung Electronics vice chairman Han Jong-hee said on Jan. 5 that the company may purchase OLED panels from LG Display if necessary, whereas the vice chairman said earlier that the company would never produce OLED TVs.

In the hydrogen industry, SK Gas, Samsung C&T and Hyundai Motor Co. accompanied South Korean President Moon Jae-in during his recent visit to the United Arab Emirates. The two countries discussed their cooperation in the hydrogen economy. The three companies produce, distribute and utilize the alternative energy source, respectively.