U.S. President-elect Donald Trump attends Turning Point USA's AmericaFest in Phoenix, Ariz., Sunday (local time). Reuters-Yonhap

Korean conglomerates are having a busy year-end as they prepare for the second inauguration of U.S. President-elect Donald Trump next month. They are focusing on building connections with the incoming administration and aligning their corporate strategies with expected policy shifts in Washington.

Officials at leading businesses here said they are strengthening their lobbying efforts to navigate the anticipated intensification of protectionist policies under Trump's second term. However, they also emphasized the need for greater caution in investment decisions, citing challenges posed by reduced policy consistency in the U.S. and the limited support they can expect from the Korean government in assisting businesses.

Samsung Electronics is managing U.S. political relations through its Global Public Affairs team, led by former diplomat Kim Won-kyoung, who participated in negotiations for the Korea-U.S. free trade agreement.

To enhance the team's role, Samsung last year promoted Kim from executive vice president to president, while expanding the team's capabilities by recruiting individuals with experience from the first Trump administration, including Kelsey Guyselman, former senior policy counsel at the White House Office of Science and Technology.

A view of the exterior of Samsung Austin Semiconductor plant in Taylor, Texas, April 16. AFP-Yonhap

SK Group established SK Americas, a unit dedicated to government relations in North America, in the first half of this year and recently promoted Paul DeLaney to senior vice president. He previously served as chief of staff at the U.S. Trade Representative and international trade counsel for the U.S. Senate Committee on Finance.

One of the issues that the two groups are currently working on is ensuring that Washington's promise to provide subsidies to Samsung Electronics and SK hynix for their U.S. operations is executed as planned under the Trump administration, which is threatening to impose hefty duties to attract foreign investments.

Hyundai Motor Group is also seeking to improve its relations with the Trump administration by appointing former U.S. Ambassador to Korea Sung Kim as a president in charge of global government affairs.

Reportedly, the carmaker is now focusing its efforts on Trump's promise to impose blanket tariffs — 60 percent on Chinese imports and 10 percent on those from other countries. Hyundai Motor Group has already invested $7.6 billion to build an electric vehicle (EV) plant in Georgia, but nearly half of its vehicles heading to the United States are still manufactured in Korea.

Hanwha Group has also stepped up efforts to build networks in the U.S., with Chairman Kim Seung-youn taking the leadership of Hanwha Aerospace, a key defense subsidiary, to expand business opportunities. LG Group is similarly strengthening its government relations efforts in the U.S. through its Global Strategy Center and Washington office.

Lotte Group Chairman Shin Dong-bin, second from right, talks with U.S. President Donald Trump at the White House, May 13, 2019. Captured from X

While businesses are enhancing their government relations functions, officials say they are facing limitations because tariffs, regulations, and other trade-related issues mostly involve government-to-government talks. Meanwhile, the Korean government is currently in a state of limbo following President Yoon Suk Yeol's impeachment by the National Assembly earlier this month, after his short-lived martial law declaration.

“Just like previous administrations, individual companies had little to do when it comes to U.S. protectionist policies,” a conglomerate official said, speaking on the condition of anonymity.

"For example, addressing potential challenges stemming from the CHIPS Act or the Inflation Reduction Act was essentially a government-to-government issue. What we can do is mainly convey the industry's opinions to the Korean government so that it can play its role in talks with U.S. counterparts."

Against this backdrop, businesses here are becoming more cautious about making additional investments in the U.S., compared to the first Trump administration or during President Joe Biden's term, due to several instances where Korean firms' investments have resulted in negative returns.

During the first Trump presidency, Lotte Chemical invested $3.1 billion to build an ethylene plant in Louisiana. However, the chemical company is now facing losses due to price competition from Chinese chemical companies.

“There are several factors affecting successful investments, and one of them is policy consistency,” an official at another conglomerate said.

“During the Biden administration, the U.S. was seen as the next manufacturing hub for eco-friendly vehicles, but it is now reverting to the past with Trump hinting at scrapping incentives for EVs, which would incur costs for firms, affecting not only carmakers but also battery makers. Trump's policies are also strengthening the value of the dollar, making firms more cautious about investing in the U.S.”