Samsung, Kia and other major Korean companies spent a record amount of money on lobbying the U.S. government in 2023 as they prepared for uncertainties in their trade environments.
Last year, Samsung Group (Samsung Semiconductor, Samsung Electronics America and Samsung SDI America) spent US$6.3 million, the highest amount ever, on lobbying in the United States, according to sources in Korean business circles and U.S. political finance tracking group Open Secrets. The Korean tech giant also hired 67 lobbyists, an increase of 12 from 2022.
Industry insiders believe that most of Samsung Group’s lobbying expenditures, which have increased sharply since 2021 under President Biden, were spent on efforts to resolve uncertainties over the Chips Act and the Inflation Reduction Act (IRA). In the second half of 2022 alone, after President Biden signed the Chips Act, Samsung spent US$3.2 million, 90 percent of the previous year’s total (US$3.72 million).
Kia’s lobbying expenditures also hit an all-time high in 2023, reaching US$1.1 million. LG Electronics, which will spend US$120,000 annually on lobbying in the United States from 2019 to 2022, doubled its spending in 2023 to US$240,000. This was the highest in five years. Lobbying efforts were concentrated in response to a policy that was implemented last year to subsidize purchases of energy-efficient eco-friendly appliances under the IRA, analysts say. On the other hand, SK hynix, which spent a record US$5.26 million in 2022, spent US$4.43 million in 2023, a year-on-year decrease in lobbying expenses.
Hanwha Group will invest 3 trillion won to build a solar hub in the U.S. state of Georgia by the end of this year. Therefore, the Korean business group is keen on securing IRA subsidies. It posted a sharp rise in lobbying expenditures. Hanwha, spent US$900,000 on lobbying in 2022. But its lobbying expenses surged 80 percent to US$1.58 million in 2023.