President Lee Jae Myung bows deeply to Samsung Electronics Chairman Lee Jae-yong at an announcement of massive investments in three “megaprojects” held at the Blue House on June 29, 2026. (pool photo)
By Kim Kyung-wook, business and economy editor The most striking part of the day was the president’s greeting.South Korean President Lee Jae Myung bowed deeply to greet Samsung Electronics Chairperson Lee Jae-yong and SK Group Chairperson Chey Tae-won at an event unveiling massive investments in three “megaprojects,” which took place at the Blue House’s guesthouse on Monday. He also lavishly praised the two of them as “national heroes” and “heroes to their country.”It is difficult to find another example in history of a president who delivered a 90-degree bow to chaebol heads in a public setting. This is why Lee Jae Myung’s greeting to the two men left as powerful an impression as the investment plans announced by Samsung Electronics and the SK Group the same day.The surface reason for the president’s deep bow is clear. The investment plans by the two countries are truly massive.Samsung Electronics and SK Hynix respectively announced investments of 2.655 quadrillion and 2.1 quadrillion won, for a total of 4.755 quadrillion won. That’s more than six times the total government expenditures of 727.9 trillion won according to the finalized budget for this year. Lee’s greeting was an expression of gratitude for those investment plans.Kang Hoon-sik, the Blue House chief of staff, explained, “[Lee] said that he wanted to get on his knees and bow down to the businessmen because he was ‘so grateful,’ but his aides barely managed to talk him out of it.”“The 90-degree bow was a gesture of sincere gratitude,” he added.But the more I think of the president’s bow, the more complex my thoughts about it become.Corporations operate according to profits. They do not invest where profitability is not assured. The investments here are not based on charity or goodwill but on careful calculation.Ahead of the announcement, the administration was criticized by the opposition for “twisting the arms” of the chaebol. In response, it stressed that these were independent investments by the companies.If these companies selected the most rational places to invest based purely on their own profits, that isn’t something to be grateful for — it’s a natural outcome. That means there was no reason for the president to bow in gratitude.This point becomes even clearer when we look at what the announcements actually said.The companies did not explicitly state a schedule for when the 4.755 quadrillion won would be invested. The absence of a timeline means it could take place over several decades.For that reason, some have voiced concerns that the investment pledges could turn out to be mere sloganeering — an empty promise. There’s a strong possibility that as the semiconductor cycle takes a turn for the worse a few years down the road, the companies could use that as an excuse to put their investment plans on hold or walk them back.In contrast, the support funds pledged by the administration are much more immediate.The administration made the decision to speed up the construction of semiconductor industrial complexes in Yongin, Gyeongi Province — by seven years in Samsung Electronics’ case and 12 years in Hynix’s. It also set plans for the timely provision of key infrastructure, including electricity, water and roads. The corporate investment is a more distant prospect, while the government assistance is the near future.Questions also remain about the “balanced national development” rationale behind the investment.Lee Jae Myung stressed that the announcement was “especially significant as an example of balanced development aligning with demand for new artificial intelligence and semiconductor bases.” The companies likewise put central emphasis on a semiconductor cluster in the Honam region in the country’s southwest corner.But the lion’s share of investment is still focused on the greater Seoul area. Of the 2.655 quadrillion won in future investments announced by Samsung Electronics, 76% (2.03 quadrillion won) is directed at the capital region, including semiconductor clusters in Pyeongtaek and Yongin. The investments in the Honam, Yeongnam, and Chungcheong regions come from the remaining 625 trillion won.In the case of SK’s investment plan, Yongin similarly accounts for more than half of Hynix’s 1.1 quadrillion won, with a total of 600 trillion won.It is, of course, undeniable that large-scale corporate investment contributes to the national economy. But this is more of a side effect of the pursuit of profit. It cannot really be seen as the fundamental objective the companies have in mind when they invest.That’s why it probably seems somewhat awkward from the standpoint of chaebol heads — people who build factories and invest based on considerations of probability — to have the president bowing deeply in greeting and praising them as “national heroes” and “heroes to their country.”The important aspect here does not lie in the striking numbers in the quadrillions of won. Even the most massive figures are just empty slogans until they are put into practice.We are now at a moment when we need to objectively break down the bill hidden behind those huge numbers — and consider the factors of uncertainty and imbalance.Please direct questions or comments to [english@hani.co.kr]
