Korean conglomerates strengthen offices in Washington for govt affairs

[Courtesy of each company]

South Korea’s four major conglomerates - Samsung, SK, Hyundai Motor, and LG - are intensifying their efforts to collect information and navigate global government-related affairs, particularly in the U.S.

They are restructuring their government affairs offices in Washington, D.C. and hiring personnel with extensive knowledge and connections in U.S. politics and government to support their timely response in the Korean headquarters.

The local offices of these conglomerates, located within a three-kilometer radius of the U.S. Congress, are engaged in intense information gathering.

Such efforts by Korean corporations are driven by the increasing importance of getting information and developing response strategies regarding global supply chain restructuring, which has become crucial in the current business landscape.

According to industry sources on Wednesday, LG Group’s newly established organization LG Global Strategy Development Institute officially began its operations on July 1.

Yoon Chang-ryul, former first deputy director of the Office for Government Policy Coordination, was appointed as the director of the institute under Management Development Institute.

LG Global Strategy Development Institute serves as an overseas government affairs think tank that responds to legislation, regulations, and other issues in the U.S. and Europe.

LG Group faces the challenge of restructuring its supply chain due to the impact of the U.S. Inflation Reduction Act (IRA) and the European Union’s Critical Raw Materials Act (CRMA) that affects its core business areas, including EV batteries and related materials.

In June, Hyundai Motor and Kia finalized their global government affairs reorganization, which has been underway since the end of last year.

They hired Kim Il-bum, former presidential protocol secretary, and Kim Dong-jo, former spokesperson for the Blue House, as vice president and executive director, respectively, to strengthen their global government affairs capabilities.

Samsung Group, in addition to its existing government affairs organization, established a separate government affairs division within Samsung SDI Co.