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By Baek Byung-yeul
Samsung Electronics, SK hynix and other Korean firms are increasing their spending on lobbying in the United States to respond agilely to the fast-changing business environment amid the escalating trade conflict between China and the U.S
At a time when Korean firms are in a tricky situation in between the world's top two economies, industry officials said Tuesday that they are trying to improve their lobbying of the U.S. government, politicians and other social organizations to make sure that their voices are delivered.
According to the Washington, D.C.-based non-partisan research organization Center for Responsive Politics (CRP), Samsung Group has spent at least $3 million each year since 2017 on lobbying. While its lobbying expenditure was at $1.64 million in 2016, the group doubled its spending on lobbying to $3.5 million in 2017.
Samsung's lobbying activities increased during the Trump administration, as it spent a total of $14.21 million from 2017 to 2020. This was nearly double the $7.64 million that it spent during the Obama years from 2009 to 2016. Samsung is continuing the high amount of lobbying activity so far for the Biden administration, as it spent more than $1 million in the first quarter of this year.
SK hynix's U.S. branch is also increasingly spending on lobbying activities. The company spent $1.25 million in 2018 and the figure was increased to $3.45 million in 2020. The company expended $1.16 million in the first quarter of 2021, indicating that SK hynix is expected to spend between $3 million and $4 million on lobbying this year as well.
Given Samsung's lobbying activities are focused on bills related to telecommunications technology such as the fifth-generation (5G) network and semiconductors, its moves can be interpreted as the tech giant seeking out more business opportunities in the U.S. telecommunications equipment market at a time when China's Huawei has been struggling under U.S. sanctions.
According to the Korea Trade-Investment Promotion Agency (KOTRA), the U.S. has the largest 5G-enabled smartphone market and the market will show consistent growth in the 6G network era when ground and satellite communications are expected to be combined.
An industry official here gave a comment on Korean firms spending more to further their influence and expanding their presence the U.S.
"To do business in the U.S., there will be lobbying to the extent permitted by law. As the size of the business grows, it will naturally increase. When considering the size of the U.S. market, it is a natural thing that Korean firms are increasing spending on lobbying," the official said. "Companies can also help develop local communities through lobbying activities."
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