Ryu Jin, KEA Chairman, Says "No Sale of Poongsan Defense... Aims to Bring Top Four Conglomerate Leaders Back During Term"

Jeju Summer Forum Press Conference

"Third Term to Be Decided Depending on the Situation"

"Concerns Over Bonus Debate Due to Domino Effect on Smaller Companies"

Ryu Jin, chairman of the Korea Economic Association (KEA), has expressed his determination to bring the top four conglomerates—Samsung, SK, Hyundai Motor, and LG—back into the KEA executive board during his term in office. He also officially denied recent market rumors regarding the sale of Poongsan's defense division and left open the possibility of serving a third consecutive term.

At a '2026 KEA Executives Jeju Summer Forum' press conference held at a restaurant in Seogwipo, Jeju on the 17th, Chairman Ryu addressed the restoration of the KEA's stature, the organization’s future direction, and major economic issues, making these remarks.

Ryu Jin, Chairman of the Korea Economic Association, is speaking at the '2026 KEA Executives Jeju Summer Forum Press Conference' held at a restaurant near Seogwipo City, Jeju on the 17th. Korea Economic Association

The return of top four conglomerate leaders is 'my mission'... Third term "to be decided depending on the situation"

Chairman Ryu, regarding his key campaign pledge to bring back the four major conglomerates to the KEA board, commented, "Right now, the top four groups are facing extremely busy and critical times, especially regarding semiconductors." He added, "The door is always open, but I don't want to push them excessively. This is something each group's chairman must decide." Still, he emphasized, "I made it my pledge to ensure their return before I step down, and I consider fulfilling this my duty before leaving office."

With his term expiring in February next year, Chairman Ryu also touched on the prospect of a third consecutive term. He said, "I'll be turning 70 in just a couple of days (being born in 1958), and my hope is to step aside at my best and let a younger generation take over. I do not wish for a third term, but the final decision will depend on the circumstances,” showing flexibility regarding his future plans.

He denied repeated rumors in the defense industry regarding the sale of Poongsan's defense division. Chairman Ryu stated, "The defense business is generating significant profits, so we've decided not to sell for now," drawing a clear line. Instead, he unveiled a concrete roadmap to launch a new business focused on services in his hometown, Andong, Gyeongsangbuk-do. Chairman Ryu said, "My late father passed away without realizing all the things he wanted to do for our hometown," and revealed, "I'm planning a new service industry business, such as building Korea's best golf course and hotel to attract more people to the region. I hope to start construction around the end of next year." He also plans to soon disclose the blueprint for relocating the company's Busan site.

On the performance bonus debate, he calls for caution... KOSPI "expected to remain between 8,000 and 9,000"

Regarding the recent heated debate in the industry over large conglomerates’ semiconductor performance and bonus payouts, Chairman Ryu spoke with caution as the leader of the business community. He said, "Since troubles could cascade to smaller companies in a domino effect, I see issues with granting bonuses across the board. I personally think it might have been better if there had been consultation and a proper process," he commented.

In this context, Kim Changbeom, KEA vice chairman, added, "There are diverse opinions abroad as well. With the revision of the Commercial Act and the expansion of directors' fiduciary duties, there are views that such matters should be addressed at board or shareholder meetings. We are discussing this from multiple angles with member companies."

Chairman Ryu was optimistic on the heated debate over the Korean stock market. He said, "While the domestic stock market is somewhat overly focused on semiconductors, overall it is undervalued. I expect the Korea KOSPI index will remain in the 8,000–9,000 range going forward."

'New K-Industry' to be fully implemented in the second half of the year... Leading major industrial transformation

Meanwhile, the 'New K-Industry' project, which the KEA is promoting as a major initiative to reform the Korean economy's underlying structure, will move into full implementation in the latter half of this year.

Chung Chul, President of the Korea Economic Research Institute, who attended the briefing, explained, "Last week, we launched the New K-Industry Forum and announced the '3+1' strategy of AX (AI Transformation), GX (Green Transition), SX (Service Advancement), and IX (Infrastructure & System Innovation). We plan to collect expert opinions during the second half, set the framework, and present the final plan before the regular general meeting next year, suggesting institutional support to the government."

This content was produced with the assistance of AI translation services.