FKI chairman resigns, and this time it may actually happen

Huh Chang-soo, chairman of the FKI has been serving as chairman since 2011 and is in his sixth consecutive term. At the end of all his earlier terms, he also tried to resign but stayed on due to the lack of a good replacement.

Huh Chang-soo, chairman of the Federation of Korean Industries, tendered his resignation on Monday calling for a complete reform of the organization. [YONHAP]

Huh Chang-soo, chairman of the Federation of Korean Industries (FKI), has tendered his resignation.

He has been serving as chairman since 2011 and is in his sixth consecutive term. At the end of all his earlier terms, he also tried to resign but stayed on due to the lack of a good replacement.

The term of the FKI chairman is two years and ends in late February.

This time could be different as the business group has weakened considerably in recent years, so much so that even Huh himself sees that his term can't be rolled over again.

“FKI is in need of a complete reform as it struggles to restore its prestige as a leading organization in the economic community,” he said on Sunday at a meeting held at Lotte Hotel in central Seoul.

Those attending the meeting included Lotte Group Chairman Shin Dong-bin, Hanjin Group Chairman Walter Cho, Doosan Group Chairman Park Jeong-won, Kolon Group Honorary Chairman Lee Woong-yeul, and Chong Kun Dang Chairman Lee Jang-han.

FKI's leadership agreed to form a committee dedicated to the reform and reorganization of the business lobby group. Kolon’s Lee will lead the committee, which will outline the reformation with the assistance of professors and analysts.

The group plans to nominate chairman candidates through its leadership general assembly scheduled for the fourth week of February.

Press reports say the FKI has asked Hanwha Group Chairman Kim Seung-yeon and Lotte’s Shin to lead to organization, but they declined.

FKI was formerly the Korea Businessmen’s Association, with the late Samsung Group Founding Chairman Lee Byung-chul leading the foundation in 1961 modeling it after the Japan Business Federation.

It became a leading economic organization in the business community as major corporations, financial institutions, and state enterprises joined as members since changing its name to FKI in 1968.

Its prestige began to falter when it was caught up in the Park Geun-hye administration’s corruption scandal in 2016.

FKI shrunk in size after large company groups left the federation and the Moon administration froze it out.

After Yoon was elected in March last year, it was invited to a luncheon meeting with five other heads of business associations . It was the then president-elect’s first official meeting.

It resumed the Korea-Japan businessmen’s meeting with Japan Business Federation in July 2022 after a three-year period in which relations between Japan and Korea were strained.

FKI’s sense of crisis rose again when President Yoon did not attend the 2022 Seoul Freedom Forum co-hosted with the Heritage Foundation in November 2022. Although Yoon did not attend the forum due to the Itaewon tragedy where 159 people died, the FKI was still left disappointed.

Voices on the need for reform increased within the organization when it was excluded from a dinner meeting that Yoon held with five heads of other business organizations in December.

“It was concluded that an overall reform was necessary considering the necessary role of the FKI including its international network capacity especially normalizing the relationship between Korea and Japan,” said vice chairman Kwon Tae-shin. “The organization will seek out measures where the FKI will contribute to the country’s economy through structural innovation.”

Other major business organizations include the Korea Enterprises Federation (KEF) led by Sohn Kyung-shik and the Korea Chamber of Commerce and Industry (KCCI).

As there have long been calls for a merger between FKI and KEF, there is the possibility that Sohn could serve as heads of both organizations and take steps in combining the two.

Sohn served as the head of the KCCI between 2005 and 2013 and has been the chairman of the KEF since 2018.

BY LEE DONG-HYUN [sohn.dongjoo@joongang.co.kr]