Samsung Electronics likely to rejoin business lobby FKI this month

[Photo by Lee Chung-woo]

Samsung Electronics Co. is reportedly set to convene an extraordinary board meeting on August 21 to deliberate on its return to the Federation of Korean Industries (FKI), South Korea’s largest business lobby.

According to sources on Tuesday, Samsung Electronics is internally coordinating a proposal to hold a board meeting to make the decision.

This decision comes just ahead of FKI’s merger with the Korea Economic Research Institute (KERI) to form a new consolidated organization. Other Samsung Group affiliates including Samsung SDI, Samsung Life Insurance, Samsung Fire & Marine Insurance, and Samsung Securities are also expected to hold their own extraordinary board meetings on August 22 to decide on their reentry into the FKI.

Samsung Group companies along with Hyundai, SK, and LG groups, which had paid most of FKI dues, left the organization after 2016 due to the organization’s involvement in a political scandal.

Separately, Samsung’s corporate compliance monitoring committee is planning to hold a session to discuss the legal risks associated with rejoining the FKI.

The committee held an extraordinary meeting on July 24, shortly after the FKI sent the four groups a letter requesting their return, and reportedly advised each Samsung affiliate to consider returning to the FKI.

Apart from Samsung Group, SK Group, Hyundai Motor Group, and LG Group may consider joining the integrated FKI structure, with their respective affiliate companies conducting board meetings before August 22.