Amid Escalating Tensions... Samsung and LG Hire Former US Officials to 'Minimize Risks'

Growing Impact of US Policy Amid G2 Conflict
Korean Companies Strengthen Lobbying and Proactive Response by Recruiting Key Personnel

Jo Haegin, former Deputy Chief of Staff at the White House, recruited by LG as head of its Washington office in the U.S.

[Asia Economy Reporter Lee Hye-young] Samsung Electronics and LG are both strengthening their government relations organizations by recruiting high-profile former U.S. political officials. This move is interpreted as an effort to enhance responses and minimize risks as the Biden administration's key policy directions are expected to have a significant impact on global companies.

On the 18th (local time), LG announced that it had hired Joe Hagin, former Deputy Chief of Staff at the White House, as the head of its Washington office.

LG plans to formally operate its Washington office going forward, strengthening external cooperation channels targeting U.S. political circles, Congress, and government agencies centered around former Deputy Chief of Staff Hagin.

Im Byung-dae, Executive Director dispatched from LG Electronics to handle overseas government relations, will co-lead the Washington office alongside former Deputy Chief of Staff Hagin.

Hagin, now an 'LG man,' has been active in the White House and political arena for over 40 years. He served under four Republican presidents and vice presidents, from Ronald Reagan to Donald Trump. As Trump's first White House Deputy Chief of Staff, he coordinated schedules between President Trump and North Korean Supreme Leader Kim Jong-un during the North Korea?U.S. summits, earning the nickname "Trump's butler."

Until now, LG was the only one among the four major conglomerates not operating a Washington office. However, as U.S.-China tensions escalate and the Biden administration's key policies increasingly impact global companies, LG appears to have judged that a group-level response is necessary.

Additionally, as LG Group pursues major business developments such as establishing a large-scale automobile battery plant in Ohio, it is seen as recognizing the need to increase contact with Washington political and government circles. In particular, LG reportedly discussed the need to expand global government relations after conducting battery litigation with SK Innovation in the U.S. last year.

Mark Lippert, Former U.S. Ambassador to South Korea

Samsung Electronics is also increasing contact with the White House, government departments, and the U.S. Congress, strengthening its government relations efforts.

Samsung recently recruited Mark Lippert, former U.S. Ambassador to South Korea, as head of external cooperation for its North America division and as a vice president at headquarters. Starting in March, Lippert will be stationed at the Washington office to oversee government relations.

Lippert served as Assistant Secretary of Defense for Asian and Pacific Security Affairs and Chief of Staff to the Secretary of Defense during the Obama administration, and was U.S. Ambassador to South Korea from 2014 to January 2017. He later held positions such as Vice President at Boeing and Head of Policy for YouTube Asia-Pacific.

When announcing Lippert's recruitment, Samsung stated that he would integrate legislative and regulatory trends and policies into corporate and business strategies. Samsung explained, "Lippert will bring decades of public policy experience to Samsung Electronics' North America division, as well as a deep understanding of how geopolitics affects business in the U.S."

Samsung has confirmed the establishment of a foundry (semiconductor manufacturing plant) in Taylor, Texas, and is scheduled to begin construction in the first half of this year. With a total investment of $17 billion (approximately 20 trillion KRW), the Taylor plant aims for completion in 2024. Lippert is expected to serve as a bridge with the government for this project as well as for Samsung's future additional investments and new business ventures.

This content was produced with the assistance of AI translation services.