AKBC E-Newsletter December

AKBC - E-NEWSLETTER DECEMBER

Dear AKBC Subscribers,

Reshuffle.

In Korea, the end of the calendar year is traditionally marked by significant organisational changes, ranging from promotions to restructuring and new team assignments, including their Australian offices. You will have noticed that many Korean companies have announced new leadership positions as they proactively address the rapidly shifting geopolitical and business landscape, including changes in the global economy following the U.S. election and the ongoing war in Ukraine. It is common for Korean expats to spend approximately three-four years on assignments overseas, including Australia, with staff assignments usually starting and finishing at the end of the year.

In Korea in recent weeks, major players like Samsung Electronics and Hyundai Motor Group and Hanwha Aerospace have announced changes to their leadership. Samsung and Hyundai in particular have focused on younger leadership, particularly in research and development, underscoring their commitment to innovation and also demonstrating a departure from traditional Korean culture where promotions are based on length of service.

During this holiday period, many employees from Korean headquarters will begin their new overseas assignments in Australia, providing both challenges and opportunities for businesses working closely with Korean partners.

Political Upheaval.

On the political front, South Korea has seen unprecedented developments. The impeachment of President Yoon Suk Yeol on December 14 by the National Assembly has led to significant uncertainty. With Prime Minister Han Duck-soo stepping in as acting president, the country faces a critical juncture as it awaits the Constitutional Court's ruling on the impeachment—a process that could take up to 180 days.

For AKBC members, this political instability has implications for bilateral trade and investment. Should the Democratic Party gain leadership in a future election, we could see notable shifts in policy, particularly in areas such as North Korea relations, energy strategy, and foreign affairs. For example, a Democratic-led administration might emphasise diplomacy with North Korea, accelerate renewable energy initiatives, and potentially reframe South Korea’s partnerships with the U.S. and Japan.

Looking Ahead.

As 2025 approaches, the end-of-year reshuffle and political shifts present both challenges and opportunities for the Australia-Korea relationship. Whether it’s navigating transitions in corporate leadership or adapting to changes in governance, AKBC remains committed to supporting its members. We will continue to provide insights, facilitate connections, and advocate for policies that foster a stronger bilateral relationship. Have a safe and Merry Christmas.

Sincerely,

Liz Griffin

CEO

Australia-Korea Business Council