Lobbying funds to the United States by the Ministry of Trade, Industry and Resources increased by nearly 20% last year, when the second term of the Trump administration launched. Lobbying funds are money our government pays to local law firms and other lobbying firms. These firms track policy trends of local governments and explain our government's position to local governments.
According to materials released on the 18th by the Ministry of Justice, the Ministry of Trade and Industry (MOTI) paid $1,568,759.51 (about 2.39 billion won) to the major U.S. law firms Arnold & Porter (Arnold&Porter), Holland & Knight (Holland&Knight), and Hogan Lovells (Hogan Lovells), which it retained as lobbying firms, from March last year to February this year. That was up 17.6% from the previous year (about 2.03 billion won).
The detailed activity records released together suggest why the Ministry of Trade and Industry (MOTI) expanded its lobbying funds. Holland & Knight said in the detailed use of lobbying funds reported to the Ministry of Justice that it "arranged meetings between Korean Ministers and State Governments and local government government official and enabled the exchange of calls or emails for discussions on pending issues" for the Korean Ministry of Trade and Industry (MOTI). The specific agenda items included ▲ trade ▲ energy ▲ digital protection ▲ semiconductors ▲ the Indo-Pacific Partnership ▲ support for Korean economic projects in the United States.
Compared with Holland & Knight's 2024 lobbying expenditure details, "semiconductors" and "energy" were added as new agenda items. That appears to be due to President Trump, after taking office, signaling universal tariffs and country- and item-specific tariffs under the International Emergency Economic Powers Act (IEEPA) and Section 232 of the Trade Expansion Act.
Arnold & Porter also reported that last year, for the Korean government, it "provided legal analyses on new or ongoing U.S. trade actions and procedures related to the U.S. Department of Commerce, the U.S. International Trade Commission, the Office of the U.S. Trade Representative, and the U.S. Court of International Trade," and "provided legal analyses related to the status of U.S. trade policy and negotiations with other countries." It also specified monitoring activities on new developments related to ▲ export controls ▲ energy ▲ the U.S. economy ▲ the World Trade Organization (WTO).
In addition, Hogan Lovells reported that it "provided advice and counsel to the Ministry of Trade and Industry (MOTI) on U.S. regulatory policies and international trade issues of interest to the party (the Ministry of Trade and Industry (MOTI))."
The United States requires local lobbying firms and law firms that engage in political and policy activities on behalf of foreign governments or corporations to register under the Foreign Agents Registration Act (FARA). It also requires them to regularly report to the Ministry of Justice their contracts with clients (Foreign Principal) such as foreign governments, embassies, and corporations, as well as activities performed, contacts with government official, and expenditure. The disclosures show that, in addition to the government, various institutions and corporations in Korea, including the Korea International Trade Association and the Korea Trade-Investment Promotion Agency (KOTRA), have contractual relationships with lobbying firms.
An industry official said, "In the United States, even to deliver a position paper on a specific issue to the government or the legislature, you usually have to go through a lobbying firm," adding, "As trade and U.S. investment issues have increased, demand for lobbying firms would naturally have grown as well."