Business leaders committed to solidifying diplomatic, economic, cultural ties with foreign countries
Korea’s business leaders are expanding their scope into the international arena, but not as representatives of their companies; they are honorary consuls of foreign countries.
Despite the extra duties these roles bring to their already busy lives, such as issuing visas and passports, the new job helps boost diplomatic relations and cultural exchange between Korea and its counterparts while opening new markets for their business.
At the vanguard of the latest trend is LG Groups’ Koo family, which has produced seven former and incumbent honorary consuls including LIG Insurance’s Koo Cha-joon of Nicaragua, LS-Nikko Copper’s Koo Cha-myung and E1’s Koo Pyeong-hoe of Peru.
The most recent post was given to Koo Cha-yol, chairman and chief executive of LS Cable and System, by Vietnam last May.
“The appointment shows the Vietnamese government’s appreciation of the contributions that Koo has made as a social activist, a successful businessman and an enthusiastic investor to strengthening the friendship and cooperation between the two countries as well as protecting Vietnamese residents in Korea,” Vietnam Ambassador Tran Trong Toan said.
Koo’s company has invested in the Southeast Asian nation since 1996, when it established a joint venture called LS-Vina Cable with the Vietnamese government, making the country’s first cable company.
Together with a separate unit, LS fetched $280 million in sales last year and employs more than 600 locals at plants in Hanoi and Ho Chi Minh City. It also played a critical role in building infrastructure and supplying power systems there, officials said.
Since his inauguration, Koo has attended many national and cultural events hosted by the Vietnamese embassy here. At the Group of 20 summit in November, he met with Prime Minister Nguyen Tan Dung to discuss economic cooperation and Vietnam’s industrialization.
“Koo is very active in serving his role as a private ambassador,” an LS spokesperson said. “He strives to improve the status of the Vietnamese living in Korea by holding regular meetings with Ambassador Toan.”
In April, Hyundai Group chairwoman Hyun Jeong-eun was tapped to represent Brazil’s economic interests in Korea and facilitate consular services for its citizens living here.
The relationship between Hyun and Brazilian Ambassador Edmundo Fujita started off with business consultation a few years ago. But it eventually led him to think, “Why not her to fill the diplomatic role?” he said.
“We really want to have a more active presence in as many places in Korea as possible but since our diplomatic service is not that big, we have to ask for help from local people who have very good connections and facilities to help us,” Fujita said at her inauguration ceremony in Seoul.
Hyun’s latest responsibility coincides with Hyundai’s move to gain a footing in the Latin American region.
Earlier this year, the group’s flagship Hyundai Merchant Marine set up a team to scale up its container shipping services there.
The logistics company opened a new route connecting Asia and Rio de Janeiro, the second-largest city in Brazil, in March. It is planning to establish a unit in Sao Paulo.
Hyundai Elevator, Korea’s top elevator maker, also wants to boost its charges in the area. It won a deal to install high-speed elevators at a Venezuelan government complex in 2009.
Last month, Hyun forged a cooperation agreement with Rio Grande do Sul, the southernmost state in Brazil.
It would open fresh business opportunities for the group as demand grows in the affluent state, officials said, which makes up nearly 20 percent of Brazil’s gross domestic product.
“The deal has momentous meaning as Hyun’s first official step in Brazil since she took the consular job,” a Hyundai Group official said. “With that as the starting point, she will expand her scope as a global business leader through local and overseas projects.”
In the electronics sector, LG Display’s Kwon Young-soo works as an honorary consul of Estonia. Its government made the offer in January in efforts to build a partnership with the company, LG officials said.
The world’s No. 2 flat-screen panel maker has aggressively targeted the northern European market. It launched a liquid-crystal display cluster in Poland in 2007 alongside other LG affiliates.
Kwon’s new position will help expand the firm’s presence in the region, the officials said. Albeit small in size and population, Estonia is known for its strong information technology sector and workforce.
Other CEOs include Cho Yang-ho of Korean Air, Kim Seung-youn of Hanwha Group and Cho Hyun-shik of Hankook Tire, who serve Ireland, Greece and Hungary, respectively.
According to the Ministry of Foreign Affairs and Trade, there are currently 124 honorary envoys appointed by governments of 104 countries, 90 percent of which are corporate executives.
“Their global networks frequently play an invisible but very significant role when the country organizes large international events,” said Cho Hae-hyeong, chairman of Nara Holdings Corp. and an honorary consul of Iceland.
By Shin Hyon-hee (heeshin@heraldcorp.com)
