[Expanding Corporate Diplomacy] ① Hyundai Motor Operates 24-Hour Global Government Relations System... 'Resembling an Intelligence Agency'

The Growing Importance of Overseas Government Relations:
Directly Reporting to the Chairman
Recruiting Former Diplomats to Expand Global Networks
Top Five Conglomerates Establish Specialized Units to Intensify Efforts
Relocating Offices to Washington for Comprehensive U.S. Lobbying Activities

At Hyundai Motor Company's headquarters in Yangjae-dong, clocks in Washington, Brussels, and Seoul run simultaneously. After 11 p.m., the Washington office's government relations team begins their report on the monitors in Hyundai's headquarters office. "Electric vehicle policy information has just come out of the White House meeting." Immediately, the Brussels office responds, "Policy changes related to carbon taxes are also being detected at the European Union (EU) Commission."

The Global Policy Office (GPO), a global government relations organization, synthesizes information in real-time through such video conferences and connects with headquarters to make immediate decisions. The importance of information affecting overseas production facilities and global sales networks?such as policy changes, signs of geopolitical tension, and sudden local climate changes?has never been greater.

The GPO organization reports directly to Chairman Chung Eui-sun. Led by President Sung Kim, a former U.S. Ambassador to South Korea, it operates 24/7, 365 days a year. Video conferences connecting Washington, Brussels, and Seoul are held every other day. Corporate government relations, once regarded as merely legal advisory or networking, have now transformed into an "information warfare" domain, where global issues are detected, analyzed, and countermeasures devised like an intelligence agency.

In the midst of the Russia-Ukraine war and the U.S.-China trade war, global information warfare has become essential for corporate survival. Hyundai Motor's urgent recruitment of President Kim, a former diplomat, is a drastic measure to strengthen global policy negotiation capabilities. Companies that once preferred former judges and prosecutors now compete fiercely to recruit diplomats skilled in overseas intelligence. In the rapidly changing international landscape, overseas government relations have evolved into a "Corporate Intelligence Unit" that simultaneously collects information and strategizes responses.

This shift toward information warfare is evident in talent acquisition. According to the 2023-2024 employment review results of retired public officials by the Government Ethics Committee, obtained by Asia Economy through the office of Kim Geon, a member of the People Power Party, over 30 former Ministry of Foreign Affairs officials moved to corporations and law firms. One-third of them joined global companies such as Samsung and Hyundai Motor. Representative cases include former Foreign Strategy Planning Director Woo Jung-yeop and former Blue House foreign press spokesperson Kim Dong-jo joining Hyundai Motor, and former North America Bureau Chief Ko Yoon-joo, known as a "North America expert," moving to LG Chem last year as Chief Sustainability Strategy Officer (CSSO, Executive Director).

The reason diplomats take charge of government relations for leading domestic companies is due to changing global conditions. With growing trade conflicts and regulatory risks, including the U.S. tariff wars and Europe's environmental regulations, companies increasingly need to respond proactively. Recruiting former diplomats expands global networks and enables direct engagement in diplomatic battles.

They also serve as bridges between companies, academia, and experts to develop global strategies. A former senior diplomat explained, "It’s like applying the experience and skills of drafting scenarios for responding to issues in various countries at the Ministry of Foreign Affairs within a corporate setting." He added, "When companies respond to new policies and regulations from different countries, former diplomats often organize confidential meetings gathering diplomatic and trade experts."

The top five conglomerates have established or expanded specialized organizations dedicated to overseas government relations. Their activities focus especially on the United States. An industry insider said, "Hyundai Motor and Samsung Electronics learned a costly lesson from exiting the Russian market," adding, "Even after the 2014 Crimea invasion, they underestimated the possibility of the Ukraine war, reflecting a lack of sensing capability."

Samsung Electronics established the Global Public Affairs (GPA) organization in July 2018 to oversee global government relations in the U.S., Europe, and China markets. By the end of 2023, it was elevated to a bureau with the promotion of President Kim Won-kyung. They also recruited Mark Lippert, former U.S. Ambassador to South Korea, as head of external cooperation for the U.S. subsidiary, though there are rumors of replacement following the start of Trump's second term.

SK Group abolished its U.S. subsidiary last year and established SK Americas as a North America government relations control tower. This move was reportedly a special directive from Chairman Chey Tae-won. Vice President Paul Delaney, former Chief of Staff at the U.S. Trade Representative (USTR), oversees government relations.

Hyundai Motor Group upgraded the GPO to a business division early last year and increased registered lobbyists to a record 40. LG Group dispatched about 10 personnel from its electronics, chemical, and energy solutions divisions to its Washington office, led by Joe Heagin, former White House Deputy Chief of Staff during Trump's first term. POSCO Group's government relations are overseen by Vice President Kim Kyung-han of POSCO Holdings. In the U.S., POSCO America, led by General Manager Kim Kyung-chan, conducts practical outreach and external cooperation.

Cho Sung-dae, head of the Trade Research Division at the Korea International Trade Association, analyzed, "As Korean companies expand investments in the U.S., the impact of U.S. administration policy changes on corporate management is growing." He added, "Especially with recent rapid shifts in trade policy, companies are reinforcing their overseas government relations organizations to respond."