Powerful Swedish family arrives in Korea for conference

A delegation from Northern European companies, including the head of the Wallenberg group of companies in Sweden that Samsung Group had once benchmarked, visited Korea Sunday.

The visit by such a large business delegation highlights the positive impact on foreign investment in Korea following the effectuation of free trade deals with the European Union and the U.S.

The delegation is known to have scheduled dinner with Samsung Electronics President Lee Jae-yong, with Korean business paying attention to the meeting between the Samsung and Wallenberg owner families.

According to business sources Sunday, 60 Northern European business delegates including Marcus Wallenberg, chairman of Skandinaviska Enskilda Banken, will attend the bank’s annual conference at the Shilla Hotel in Seoul.

The conference is held every year by the Wallenbergs, who own Skandinaviska, in major countries and invites the CEOs of the largest companies in Northern Europe. The event will be held in Korea for the first time, following previous Asia hostings in Tokyo, Beijing and New Delhi, India.

A business source said, “The visit by a large number of delegates from Northern European companies means that they are more attracted to Korea following the effectuation of free trade deals with the EU and the U.S."

Marcus Wallenberg, who is in charge of management for the Wallenberg family, will host the conference. He had chaired the financial section of the Seoul G-20 Business Summit in 2010.

Visiting CEOs will include Keith McLoughlin of Europe’s largest home electronics maker Electrolux, Hans Vestberg of the world’s largest telecom equipment manufacturer Ericsson, and Stefan Persson of Sweden’s largest fashion company H&M.

The delegation will visit the Demilitarized Zone and Panmunjom, a truce village on the de-facto border between the two Koreas. They will also attend lectures on Korean politics, economy, trade, education and North Korea.

Korea Development Institute President Hyun Oh-seok will speak on the state of the South Korean economy, while Korea Advanced Institute of Science and Technology President Seo Nam-pyo, president of the K, will introduce the country`s education to the delegates. Former Prime Minister Lee Hong-ku will lecture on South Korean politics and North Korea issues, while Sakong Il, former chairman of the Korea International Trade Association, will explain South Korea’s trade relations with the EU, the U.S. and Asian countries. Choi Chi-hoon, president of Samsung Card, will talk of the globalization strategies of South Korean companies, and Choi Byung-il, director of Korea Economic Research Institute, will lecture on the future of South Korean industries.

The group will also visit the presidential office for talks with President Lee Myung-bak on investment and collaboration between South Korean and Northern European companies.

The meeting between the Samsung and Wallenberg owner families is drawing attention. Samsung Group Chairman Lee Kun-hee had visited the Wallenberg family in Sweden in 2003, expressing interest in the Swedish model of business governance and corporate citizenship.

The delegation will visit Samsung’s art gallery Leeum Monday and have dinner with Samsung Electronics President Lee Jae-yong.

The Wallenberg family started their business in 1856, growing into the largest family-owned business in Sweden. The family either directly or indirectly participates in the management of more than 100 companies, including 19 key Swedish companies such as Skandinaviska Enskilda Banken, Electrolux, Ericsson, Saab and ABB. The Wallenberg group of companies accounts for 30 percent of Sweden’s GDP, employing 4.5 percent of the Swedish population.

The most famous member of the family was Raoul Wallenberg, a diplomat who helped rescue thousands of Jews from the Nazis in World War II.

parky@donga.com