November 22, 2024

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The GR Company CEO Jakob Edberg (second from left) speaks during a panel at The Korea Herald HIT Forum, held at the Korea Chamber of Commerce and Industry in Seoul, Thursday. From left: the session's moderator, Lugar Center Senior Fellow Paul Kong; Edberg; Lee & Ko Senior Adviser Choi Seok-young; and Kim & Chang lawyer Kim Seong-joong. (Lee Sang-sub/The Korea Herald)

Experts in global business diplomacy on Thursday discussed emerging lobbying trends and assessed the readiness of Korean companies to navigate complex geopolitical developments, offering strategies for more effective lobbying.

This discussion was a key part of the annual The Korea Herald HIT Forum, held this year at the Korea Chamber of Commerce and Industry in Seoul. The event's theme, "Business Diplomacy — Navigating business through mega election year," underscored the challenges and opportunities facing companies amid increased geopolitical uncertainty and risks.

Moderated by Paul Kong, a senior fellow at the Lugar Center, the panel featured The GR Company CEO Jakob Edberg, Kim & Chang lawyer Kim Seong-joong and Lee & Ko Senior Adviser Choi Seok-young.

The experts underscored the importance of adopting a long-term perspective and investing consistently in government relations. “Lobbying is a slow process, but in Korea, many companies still take a 'symptomatic' approach, treating it as a tool for resolving problems only when they arise,” said Kim, an experienced litigator in international trade and customs. “Korean companies are transitioning toward a more systematic approach.”

Choi emphasized that Korean CEOs need to shift their mindset on lobbying to establish an effective system. “For lobbying to be impactful over the long term, it must start at the grassroots level,” he said. “Company leaders need to view lobbying as an integral part of business strategy, requiring careful allocation of resources and personnel.”

While increasing lobbying expenditures is important, building effective relationships requires more than just financial resources, Choi said, emphasizing the crucial role of leadership.

“During my time in Washington, I often saw Poongsan Group Chairman Ryu Jin flying in from Korea to meet with lobbyists from both Democratic and Republican circles,” Choi recalled. “Although these were often small firms, this doesn't necessarily mean their insights are shallow. Ryu gained practical advice from them.”

Under Ryu’s leadership, Poongsan has grown into one of Korea's largest defense exporters, and he currently heads the Federation of Korean Industries, the country’s leading business lobby group.

Jakob Edberg, CEO of The GR Company, agreed but cautioned against fruitless spending. “Lobbying is a game -- not in a negative sense, but because no matter how much information you gather, if you don't actively engage, your message won't get across.”

Edberg, who has extensive experience representing Japanese firms in political negotiations, observed that while Japanese companies excel in building long-term lobbying strategies, they often lack action-oriented initiatives, which can undermine their efforts. In contrast, Korean firms are more risk-taking and agile in business but still hesitant to engage proactively in political advocacy.

“I think this stems from Confucian traditions, which place the government at the top of society, creating a challenge for companies to assert themselves,” Edberg said. “But in today’s rapidly changing world, where rules are always changing, companies need to speak up. If they don’t make their voices heard, no one will do it for them.”

The panelists stressed that just as companies invest in market strategies and customers, they must also prioritize government relations as a critical component of business success.

“Many of the current business diplomacy staff at Korean conglomerates have diplomatic backgrounds. While this expertise is vital, companies also need talent with strategic insights into international rules and regulations,” said Choi, a veteran diplomat who represented Korea in key international negotiations for 37 years.

The experts also highlighted the growing importance of understanding European political dynamics. “European policy decisions have long-term impacts and often carry extraterritorial effects, influencing companies globally,” Choi said.

Kim added that even those focusing on the US market should stay attuned to European legal trends. “Many US regulations, particularly in labor and environmental areas, are influenced by European precedents,” he noted, adding, “Staying ahead of these trends and actively engaging in lobbying activities in Europe has become crucial."

By Choi Ji-won (jwc@heraldcorp.com)