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The "Korea-Italy Business Roundtable (BRT)," held on June 12 (local time) on the occasion of President Lee Jae-myung's state visit to Italy, served as a fitting stage to translate the "Special Strategic Partnership" agreed upon at the bilateral summit into tangible industrial cooperation. From semiconductors and artificial intelligence (AI) to aerospace, defense, energy infrastructure, and the bio and beauty industries, companies from both nations shared ongoing cooperation cases and new business plans, moving to broaden the scope of economic cooperation.
At the BRT held at a hotel in central Rome that day, President Lee emphasized, "As the international order shifts rapidly amid intensifying technological hegemony competition epitomized by the AI revolution and supply chain restructuring, and as global uncertainty rises, trustworthy partners and networks of technology, talent, and supply chains determine corporate competitiveness and industrial technology competitiveness," adding, "The two countries are truly optimal partners."
President Lee also said, "We can seize new opportunities for cooperation," and "If we join forces, one plus one will be not two, but far more." Ryu Jin, chairman of the Federation of Korean Industries (FKI), responded, "Italy, the homeland of Galileo Galilei, the father of modern science, and a powerhouse in source technologies, and Korea, with its advanced manufacturing capabilities, are partners with great potential for synergy."
Expanding Space and Defense Cooperation… "Advancing Together in the Global Market"
The areas that drew the most attention were aerospace and defense cooperation. Korea Aerospace Industries (KAI) shared a plan to jointly enter the global satellite market through cooperation with Thales Alenia Space Italia, Italy's leading space company. The plan is to combine the satellite technology capabilities of both countries to target third-country markets.
KAI also introduced that it is expanding technical cooperation with Italian companies to localize the power transmission system, a core component of the Korean-made Surion utility helicopter. This signifies that cooperation is evolving beyond simple component procurement into joint research and development and the internalization of technology. Through collaboration with Italy, the world's third country to launch a satellite, Korean companies' expansion into Europe is expected to gain momentum.
LS Expands in European Power Grid Market… Expected to Benefit from Energy Transition
In the energy and infrastructure sector, the cooperation case of LS Group drew attention. In 2014, LS became the first non-European company to win a power grid project from Italy's state-run transmission company TERNA, and recently secured an additional overhead transmission line project worth 80 million euros. On that day, LS announced plans to actively participate in Europe's energy transition and power grid modernization projects, using its Italian research and development (R&D) center as a base.
In particular, as the construction of AI data centers surges across Europe, power demand and investment in transmission and distribution infrastructure are also on the rise. The Italian government is also pursuing the modernization of its aging power grid, raising the possibility of additional orders for Korean companies.
HD Construction Equipment: "Feeling the Effect of Eased Trade Barriers"
A case in which summit diplomacy led to improved business conditions was also presented. HD Construction Equipment positively assessed the Italian government's recent removal of a restrictive clause that had granted benefits only to products manufactured within the European Union (EU) in applying the super-depreciation system.
At the summit with President Sergio Mattarella, President Lee also cited the super-depreciation system as one example of promoting cooperation between Korean and Italian companies. Italy's super-depreciation system reduces corporate tax burdens by significantly reflecting investment amounts, but in its early days it limited eligibility to EU-made products, inevitably putting Korean companies at a disadvantage. At the summit, President Lee expressed his gratitude, saying, "I conveyed to Prime Minister Meloni, who visited Korea last January, the impact this could have on Korean companies," and "Italy responded swiftly, resolving the unfavorable conditions."
Regarding the removal of unfavorable factors for companies in less than six months following the exchange of views between the two leaders, HD Construction Equipment also said, "Through the efforts of both governments, the conditions for Korean-made construction equipment to enter the local market have improved," adding, "We will continue to provide innovative products such as smart equipment and contribute to the development of the construction and infrastructure industries in both countries."
Italy as a Strategic Base for Bio and K-Beauty's European Push
In future promising industries, cooperation cases in the bio and beauty industries were presented. Korean bio company Curevus introduced a $360 million technology export deal signed with Italian pharmaceutical company Angelini Pharma, presenting the possibility of jointly developing and commercializing treatments for intractable brain diseases.
Italy is a production hub accounting for about 23% of Europe's biopharmaceutical contract development and manufacturing organization (CDMO) market. Observers say it could serve as a key partner for Korean bio companies entering the European market.
Cosmax also explained its strategy to expand K-Beauty into the European market, based on the local production base secured through its acquisition of the Italian ODM company Cheminova. The plan is to accelerate its push into the European market by combining Italy's cosmetics manufacturing capabilities with Korea's product development capabilities.
"Special Strategic Partnership, A New Phase of Economic Cooperation"
On the Korean side, the BRT was attended by major business leaders spanning advanced strategic industries and manufacturing, including Samsung Electronics Chairman Lee Jae-yong, LS Group Chairman Koo Ja-eun, and Hyosung Group Chairman Cho Hyun-joon, as well as Hyundai Motor President Sung Kim, LG Chem President Kim Dong-chun, Naver CEO Choi Soo-yeon, HD Construction Equipment President Moon Jae-young, and KAI President Kim Jong-chul. Samyang Foods Chairman Kim Jung-soo and Fashion Group Hyungji Chairman Choi Byung-oh also attended to discuss cooperation in the K-Food and fashion sectors, which are expanding their presence in Europe.
On the Italian side, high-ranking government officials including Deputy Prime Minister and Foreign Minister Antonio Tajani attended, along with major corporate leaders driving the industrial ecosystem, such as Giorgio Marsiaj, vice chairman of Confindustria.
In addition, attendees included Biagio Mazzotta, chairman of Italy's largest shipbuilding company Fincantieri; Giampiero Di Paolo, CEO of Thales Alenia Space Italia, a defense, aerospace, and advanced industry company; Enrico Maria Bagnasco, CEO of Sparkle, which leads Italy's global communications infrastructure; and Marco Petracchini, chairman of Eni Live, Italy's leading decarbonization energy company.
Also drawing attention were global companies in the luxury and cosmetics sectors, including the world-renowned high-performance and sports car brand Ferrari and Kiko Milano, a beauty brand with more than 1,000 stores worldwide.
Chairman Ryu added, "With two summit meetings between the leaders this year and the elevation of bilateral relations to a 'Special Strategic Partnership,' economic cooperation is entering a new phase," and "Let us expand cooperation across advanced industries such as AI, renewable energy, and aerospace."
