ANN/THE KOREA HERALD – Samsung, SK, Hyundai Motor and LG, top four chaebol organisations in South Korea are likely to re-join the Federation of Korean Industries (FKI), a disgraced business lobby group inactive for years after its role in a massive influence-peddling scandal in 2016.
The conglomerates’ significant affiliates conducted board meetings to ratify their re-joining the FKI, according to industry sources.
The most recent choice was made after a recommendation from Samsung’s compliance committee on Friday for the organisation to rejoin the FKI with the caveat of “immediate withdrawal in the event of political collusion”. The topic was discussed at board meetings on Monday by significant affiliates including Samsung Electronics, Samsung SDI, Samsung Life, Samsung Fire & Marine Insurance, and Samsung Securities.
If Samsung returns to the FKI, it would bring to an end its absence of six and a half years, since its withdrawal in February 2017.
Sources said the remaining three groups were also finalising discussions on their possible re-entry into the group later in the day. Company officials, however, declined to confirm, citing the sensitivity of the issue.
Bringing the four major conglomerates back to its membership ranks is the last piece of the puzzle that the FKI is seeking as part of its self-reform measures aimed at a transformation into an economic think tank and to attract new members.
“The four major groups have a lot to contribute to the operation of the FKI. Above all, they will naturally monitor and supervise whether they are operating properly,” Sungkyunkwan University Law School Professor Choi June-sun said.
Established in 1961 by the late Samsung founder Lee Byung-chul, the FKI had been Korea’s largest and most influential business group, serving as a platform to facilitate official communication with the government and political circles.
The FKI’s reputation has sharply declined for being the nexus for close ties between government and big business, and the withdrawal of the four conglomerates led to an exodus of members.
It once boasted membership of some 640 firms, but that has currently been reduced to 420.
Over the past years, its leadership role among business lobby groups has been usurped by the Korea Chamber of Commerce and Industry, headed by SK Group Chairman Chey Tae-won.
FKI will seek board members’ approval of its plan to merge with the Korea Economic Research Institute, an FKI-affiliated think tank, to repair its reputation tainted by its role in the high-profile scandal that ended up with the impeachment and ousting of former president Park Geun-hye.
The group will also vote on the selection of its new chairperson as Poongsan Chairman Ryu Jin.
Earlier this month, Ryu was selected as the sole candidate in recognition of his extensive “experience, knowledge and network on a global stage,” which is in line with the group’s goal to be promoted to a global think tank and become a pivotal organisation.
