[Expanding Corporate Diplomacy]② Samsung, SK, Hyundai Motor, LG, POSCO Hire 159 US Lobbyists... Twice as Many as 7 Years Ago

Twice as Many Lobbyists for the Big Five Groups Compared to Trump's First Term
'Revolvers' from U.S. Government, Congress, and Agencies Take the Lead
100 Billion KRW Spent on Lobbying in Five Years... Hanwha Steps Up Its U.S. Push

#. Samsung Electronics has launched behind-the-scenes lobbying efforts to receive subsidies under the CHIPS and Science Act (CSA) as it establishes an advanced semiconductor factory in Taylor, Texas. The amount spent on lobbying by the group in 2024 alone reached $6.98 million (100.3 billion KRW). While the Global Public Affairs (GPA), which oversees global government relations, is moving swiftly, the multinational law firm Covington & Burling LLP has also joined in. They specialize in lobbying governments and international organizations worldwide.

#. Hyundai Motor Group has hired renowned law firms and lobbying firms such as K&L Gates LLP and Mercury Public Affairs to respond to the U.S. Inflation Reduction Act (IRA). They have especially targeted lawmakers from Georgia, where large-scale investments have been made. Republican Representative Buddy Carter criticized the IRA bill excluding Hyundai in an interview with Korean media, and Democratic Senator Raphael Warnock introduced an amendment to the IRA to allow Hyundai to receive subsidies as well.

◆Employment of ‘Frontline’ Lobbyists Doubled in 7 Years=Behind the quiet diplomatic efforts of Korea’s top 10 conglomerates are ‘frontline’ lobbyists. Like a swan gracefully floating on water while paddling vigorously underwater, these lobbyists work hard behind the scenes. Especially by hiring many former U.S. government, congressional, and regulatory officials, they strive to ensure that corporate interests are reflected in policies. The lobbying expenditures of major companies expanding their North American strategies over the past five years have exceeded 100 billion KRW.

Five major groups operating separate overseas government relations organizations hire local lobbyists to communicate their needs. Lobbyists act as the frontline leaders of corporate government relations teams.

The reliance on these face-to-face operatives is gradually increasing. Based on an analysis by Asia Economy on the 18th using the U.S. Senate lobbying database and nonprofit organization OpenSecrets data, the number of lobbyists hired last year by the ‘Big 5 Groups’?Samsung, SK, Hyundai Motor, LG, and POSCO?reached 159. This is double the 85 lobbyists in 2017, when the first Trump administration began. Samsung Electronics employed the most with 64 lobbyists, followed by Hyundai Motor with 40. Hyundai’s increase in lobbyists was particularly remarkable, growing more than fourfold. Notably, last year Samsung and Hyundai alone hired 104 lobbyists, exceeding the total number of lobbyists employed by the Big 5 groups seven years ago. SK Group also significantly increased its lobbyists from 15 to 31 during this period.

A noteworthy indicator is the number of government-affiliated lobbyists known as ‘Revolvers.’ These are lobbyists who previously worked in the U.S. government, Congress, or regulatory agencies and were hired by companies after leaving public office. The nickname ‘Revolver’ comes from their revolving movement between government and private sectors. The increasing proportion of Revolvers among corporate lobbyists indicates a growing need to be involved in or influence U.S. policy and regulatory formulation.

In 2017, 32 out of 39 Samsung Electronics lobbyists were Revolvers. Last year, the number of Revolvers rose to 39, matching the total number of lobbyists during the first Trump administration. SK Group has 20 Revolvers among its 31 lobbyists. Hyundai Motor had only 8 Revolvers in 2017, but this number increased to 23 last year.

Robert Hood, hired as deputy director of Hyundai’s Washington office, is also a Revolver. During the first Trump administration, he served as Deputy Assistant Secretary of Defense, coordinating relations between the Department of Defense and Congress as part of government relations work.

◆Corporate Lobbying Expenditures Reach 100 Billion KRW=Samsung, SK, Hyundai Motor, Hanwha, and others have spent nearly 100 billion KRW on lobbying over the past five years. Hanwha Group, in particular, has increased its lobbying expenditures nearly eightfold while strengthening its North American operations during this period.

Samsung increased its spending from $3.33 million in 2020 to $6.98 million (100.3 billion KRW) last year, setting a new record. SK spent $5.59 million (80.3 billion KRW). In 2021, when SK Innovation was engaged in a trade secret infringement dispute with LG Energy Solution over batteries, it spent $6.12 million to prevent import bans by the U.S. International Trade Commission (ITC).

Hyundai Motor Group spent $3.28 million (47.1 billion KRW). After surpassing $2 million for the first time in 2022, it has consistently invested a similar budget. Hyundai Motor Group’s lobbying priorities include hydrogen and fuel cell policies, electric vehicle infrastructure and tax incentives, and emission regulations by the Environmental Protection Agency (EPA).

The most aggressively transformed company is Hanwha Group. Its lobbying expenditure was only $450,000 in 2020 but reported $3.91 million (56.2 billion KRW) last year, surpassing Hyundai Motor. According to U.S. Senate reports, Hanwha lobbied regarding tariffs on solar panels. The five-year increase rate in lobbying expenditures approaches 769%. As it recently strengthens its sales capabilities in the North American defense market, more intense lobbying activities are expected.

The sharp increase in spending by major companies is linked to changes in U.S. policy. There is active movement to expand domestic production and investment in key export industries such as semiconductors and electric vehicles. In the defense sector, which is directly related to national security, persuading the local government is even more important. A defense industry official said, "It is essential to meet local procurement policies and Department of Defense standards, and building long-term trust is key."

However, there are calls for expanded government support to prevent excessive lobbying from making Korea overly dependent on U.S. industrial policies. A diplomat from the Korean Embassy in the U.S. said, "In the past, Korean companies often responded reactively to changes in U.S. policies, but now the strategy is to preemptively block risks. As major conglomerates have grown into global players, government joint responses must also be supported," he emphasized.