The American Chamber of Commerce in South Korea (AMCHAM in Korea) has become an alternative lobby group for Korean businesses as presidential scandal has destabilized the Federation of Korea Industries (FKI) that long acted as the primary interest group for Korean conglomerates.

According to sources from the business circle on Wednesday, Korea’s industrial conglomerate Hyosung Group recently became the latest Korean chaebol entity to join AMCHAM following Hyundai Motor Co., POSCO and Doosan Group.

Hyosung, which has joined and left AMCHAM repeatedly since 2004, reapplied for membership amid signs of trade barriers from Washington under President Donald Trump.

Hyosung along with other Korean conglomerates hope their AMCHAM membership can shield them from U.S. trade sanctions against imports and allow access to connections in Washington to discuss their U.S. business matters.

Currently, the share of Hyosung’s transformers is in the top five in the American market. The U.S. administration has been accusing Korean-made transformers for disturbing market order with cheap prices. The United States Department of Commerce has recently imposed 61 percent anti-dumping tariffs on transformer imports of Hyundai Heavy Industries Co. and 2.99 percent on Hyosung’s.

“We have decided to join AMCHAM to expand our businesses in the U.S. including Nautilus Hyosung’s automated banking machines business,” said an official at Hyosung.

Before Hyosung, Korea’s largest automaker Hyundai Motor, biggest steelmaker POSCO and Doosan have enrolled on the AMCHAM list this year. The Korean automobile, steel and heavy industries heavily rely on exports to the U.S. There have been signs that the U.S. would impose high tariffs on foreign steel, prompting POSCO to join AMCHAM to expand its discussion channel.

Doosan also owns a compact construction equipment maker Doosan Bobcat Inc., a major player in the U.S. The company with annual sales amounting to 4 trillion won ($3.5 billion) is expected to benefit from the U.S. administration’s plan to increase infrastructure investment.

The AMCHAM was founded in 1953 with an aim to promote interests of the U.S companies in Korea. It has more than 700 member companies of which about 40 percent are non-U.S. corporations.

By Kang Young-woon

[ⓒ Pulse by Maeil Business News Korea & mk.co.kr, All rights reserved]