November 21, 2024

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Hyundai Motor Group Executive Chair Chung Euisun (Bloomberg)

Hyundai Motor Group is on track to report record-high spending for lobbying in the United States this year as the Korean auto conglomerate continues to ramp up its presence and influence in Washington, DC.

According to OpenSecrets, a Washington, DC-based nonprofit, nonpartisan organization that tracks and publishes data on campaign finance and lobbying, Hyundai Motor Company and Kia -- the two automakers under Hyundai Motor Group -- have spent $2.51 million on lobbying in the US as of the third quarter this year.

The Korean auto conglomerate allocated $2.47 million for the same period last year, closing 2023 with $3.23 million spent. In 2022, it spent $2.45 million between January and September, reaching record-high annual US lobbying spending -- $3.36 million -- by the end of the year.

Hyundai and Kia are forecast to surpass previous spending records for US lobbying by the end of this year as the US readies to usher in a second Donald Trump administration next January.

The Korean auto giant conducts lobbying to ensure that its opinions are heard across all sectors in American decision-making circles, by reaching out to a wide range of government bodies and Congress. These include the US Senate, US House of Representatives, US Trade Representative, National Economic Council, Department of Transportation, US Customs and Border Protection, National Highway Traffic Safety Administration, Executive Office of the President, Environmental Protection Agency, US Department of Commerce, and US Department of the Treasury.

Issues lobbied by Hyundai Motor and Kia this year were related to the automotive industry, aviation, airlines and airports, trade, taxes, federal budget and appropriations, energy and nuclear power, environment and superfund, manufacturing, and transportation.

“As Hyundai Motor appointed Sung Kim as a president, it shows that (the company) will spend even more next year to cope with the Trump risk,” said Kim Pil-su, an automotive engineering professor at Daelim University, referring to the Korean automaker’s executive appointments announcement on Friday. Sung Kim has held key positions throughout the Bush, Obama, Trump and Biden administrations to deal with East Asian and Korean affairs.

“Through lobbying, (Hyundai) is trying to figure out the direction of the second Trump administration. They are meeting with various people (in the US) to get a grasp of what policies will look like next year. (Hyundai’s spending on US lobbying) is expected to increase in the future.”

While Hyundai and Kia's committing of millions of dollars to issues related to the design, production and sales of their vehicles in the US may not be surprising, it is worth noting that issues of aviation, airlines & airports had the second-highest number of lobbying instants at seven.

Supernal, Hyundai Motor’s advanced air mobility subsidiary in the US, in fact, spent $580,000 on lobbying in the first three quarters of this year. In January, it unveiled the S-A2 -- a life-size product concept of its electric vertical take-off and landing aircraft, or eVTOL -- at CES 2024 in Las Vegas, laying out a roadmap to launch commercial flights in the US in 2028.

Hyundai reported six lobbying occasions, the highest number of lobbying reports on specific issues, for two bills this year: the FAA Reauthorization Act of 2024 and the Securing Growth and Robust Leadership in American Aviation Act.

Both acts address a wide range of aviation issues. The former requires the FAA to “establish a regulatory pathway for the certification or approval of commercial unmanned aircraft to operate beyond the visual line of sight” and the latter requires the FAA to issue rules for certifying pilots for powered lift aircraft, such as eVTOL aircraft, and operational rules for them.

Hyundai Motor has also allocated $180,000 to its US robotics subsidiary Boston Dynamics, looking to bolster its robotics business and secure a leading role in the emerging technology. OpenSecrets states that the automaker has lobbied toward federal policy and legislation related to supporting the robotics industry and the intersection of robotics with artificial intelligence.

“Supernal will play a pivotal role as the (urban air mobility) sector is projected to grow,” said Kim. “The UAM industry could surpass the automotive sector in the future. A similar reasoning can be applied to robotics as well.”

By Kan Hyeong-woo (hwkan@heraldcorp.com)