Korea Must Reform Lobbying Strategy Amid Coupang Crisis

In Korea, the word "lobbying" often triggers immediate resistance. It is common sense in Korea that policymakers should not accept money from specific individuals to create policies that serve their interests. Korean corporate representatives stationed in Washington D.C. report that when they discuss lobbying budgets with their headquarters, they are met with negative perceptions.

But in the United States, it is a completely different story. Foreign governments and companies can engage in lobbying activities freely as long as they transparently register their activities. By spending significant amounts on lobbying and hiring influential lobbying firms, they can effectively convey their voices to the U.S. government and Congress, legitimately driving policy changes.

I raise the topic of lobbying because it seems Korea has been pushed around by a single company, Coupang, since the second half of last year. Coupang, which registered for lobbying activities in the U.S. in 2021, spent more than $3.3 million (approximately 4.8 billion won) in 2024. The company also donated $1 million to President Donald Trump's inauguration ceremony in January last year. Coupang Chairman Bom Kim personally attended the inauguration, displaying his connections by taking photos with Donald Trump Jr., Secretary of State Marco Rubio, and Commerce Secretary Howard Lutnick.

The effects are already showing. When Acting Prime Minister Kim Min-seok visited Washington D.C. to meet Vice President J.D. Vance, Vance brought up the Coupang issue. A senior White House official told Korean media, "We remain concerned about reports of politically motivated targeting in Korea, particularly cases involving religious figures or American companies"—an apparent reference to Coupang.

Congress has taken a similar stance. A spokesperson for the House Judiciary Committee recently stated, "Foreign governments are targeting innovative American companies. We have already seen this in Europe, and now we are seeing Korea sanction Coupang to favor domestic competitors. Congress must investigate these allegations and develop legislation to prevent discriminatory law enforcement and protect American interests." The House Judiciary Committee is scheduled to summon Harold Rogers, interim representative of Coupang's Korean subsidiary, for closed-door testimony on the 23rd (local time). The committee has also demanded submission of six years' worth of communications with the Korean government, signaling a microscopic examination of the government's investigation into Coupang.

Despite the situation escalating to this level, the Korean government's lobbying efforts have shown little effectiveness. While officials may have much to say, observers watching Korea's lobbying efforts in the U.S. are not giving favorable reviews. An official at a Washington D.C. law firm noted, "The Korean government hires lobbying firms but only asks them to arrange meetings with U.S. government and congressional officials. This is vastly different from other countries where even prime ministers meet directly with lobbying firms to strategize how to respond to American counterparts." He added, "Korean government officials say they will handle things themselves once the lobbying firm sets up appointments. For lobbying firms, this means they only need to arrange meetings while receiving the same fees as they would from other countries—making contracts with the Korean government preferable."

Of course, there are real limitations in budget and personnel. The Korean Embassy's budget for congressional and public relations consulting firms was 1.793 billion won in 2024—far less than what Coupang spent that same year. The embassy's public diplomacy staff is reportedly half that of Japan's.

The budget can be increased. But Korea must hire proper lobbying firms capable of influencing the U.S. president and key figures in the administration and Congress. It must persistently utilize them to understand how to communicate with the American side, getting full value for every dollar spent. The National Assembly must also thoroughly verify whether lobbying budgets are being spent properly, based on expertise. One lesson from the Coupang crisis is that it is time for Korea to bring lobbying—a legitimate policy activity in the United States—into the open and do it right.