Samsung Electronics has engaged a Republican-affiliated lobbying firm to enhance its presence in Washington. This action follows Hyundai Motor Group’s significant $21 billion investment announcement in the U.S., made at the White House on March 24.
As Samsung is the sole South Korean conglomerate able to invest at the same level as Hyundai, industry experts are keeping a close eye on whether Samsung will take similar actions.
Compounding the situation, the subsidies that the previous Biden administration guaranteed to Samsung under the CHIPS Act- a U.S. law that President Donald Trump has pledged to overturn- are uncertain.
On March 25, congressional filings reveal that Samsung Electronics engaged Continental Strategy, a lobbying firm founded by Carlos Trujillo, who previously served as the U.S. ambassador to the Organization of American States during the first Trump administration. Since Trump’s return to the White House, Continental has experienced a surge in business and has recently expanded its office in Washington, D.C.
Notably, Katie Wiles, the daughter of White House Chief of Staff Susan Wiles, currently serves as a partner at the firm. She attained this partnership last November, which coincided with her mother’s nomination as Chief of Staff. At that time, Continental stated she would “create new opportunities for growth as we capitalize on the momentum from Trump’s decisive victory.” Republican Rep. Byron Donalds supported the decision, asserting, “Continental is fortunate to have her.”
Samsung’s lobbying team at Continental features prominent Republican figures such as Alberto Martinez, who was the chief of staff for Senator Marco Rubio; Daniel Gomez, a former aide to Republican Senator Deb Fischer; and Trujillo. The firm will represent Samsung in areas like telecommunications, consumer electronics, semiconductors, supply chain, and trade issues.
Samsung is constructing semiconductor plants in Taylor, Texas, and additional sites, receiving $4.745 billion in subsidies from the Biden administration last year, which accounts for roughly 12.8% of its total investment.
Trump’s persistent demands to repeal the CHIPS Act have sparked worries about Samsung’s potential loss of subsidies. Covington & Burling, the D.C. law firm that assisted Samsung with its subsidy application, is now facing Trump’s scrutiny, compounding Samsung’s difficulties. Trump has charged the firm with “weaponizing the judicial process” and has even issued an executive order aimed at reducing its power.
Samsung has allegedly terminated its contract with WestExec Advisors, a consulting firm co-founded in 2017 by prominent Democrats such as former Secretary of State Antony Blinken and former Deputy Defense Secretary Michèle Flournoy. WestExec was providing advice to Samsung on regulatory and policy issues. This termination has sparked speculation that Samsung is shifting its lobbying strategy to foster closer relationships with Trump’s inner circle.
