[Column] Companies More Interested in US Election Coverage than South Korea

Importance of Venue Management Capabilities to Create Opportunities

Recently, a representative from a certain company could not take their eyes off the TV mounted high in the corner of a restaurant during a meal with a reporter. They were watching intently as an expert analyzed the high approval ratings of former President Donald Trump, the Republican candidate for the U.S. presidential election. The representative said that the first thing they check on their smartphone during their morning commute is foreign news articles about the U.S. presidential election.

Our company representatives have become quite sensitive to political risks originating from the U.S. recently, due to the possibility of a second Trump administration. Many companies remember the America-first policies implemented during his previous term (2017?2021). The economic policies of the Trump administration, which significantly raised tariffs and other measures, caused very difficult times for our companies.

To avoid experiencing that hardship again, companies have been preparing in advance since early this year. They have strengthened their government relations organizations by integrating, expanding, or upgrading them. Some have appointed experts internally to lead these efforts, while others have hired external specialists. The atmosphere favors stability over risk-taking. Looking closely, most companies have not created entirely new teams or drastically changed related organizations. SK Group consolidated the government relations organizations that each affiliate handled into ‘SK Americas,’ and Samsung Electronics elevated its Global Public Affairs (GPA) team to a ‘division.’ LG Group also renamed its existing Global Strategy Center under the LG Management Development Institute to the Global Strategy Development Institute. All these moves reflect an expansion of government relations organizations due to the uncertainty surrounding the U.S. presidential race.

A scene from a sports drama aired a few years ago brings to mind the fierce struggles companies face at a crossroads between survival and failure. The male protagonist leading the perennial last-place team ‘Jaesong Dreams’ calmly said while looking out the bus window, “Not everyone can have the same environment, and everyone fights with the weapons they have. But if you start making excuses, you will lose again in the same situation.”

Our companies have endured numerous geopolitical risks before to reach where they are today. In the process, they have accumulated know-how and capabilities. There is some concern about whether they can overcome this risk as well. However, crises can also be turned into opportunities. The local government relations capabilities of each company have become even more important.

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