Committee to hold special meeting ahead of Samsung’s potential FKI return

[Photo by Lee Seung-hwan]

Samsung Group’s journey towards rejoining the Federation of Korean Industries (FKI), a business lobby of South Korea’s largest companies, has taken center stage, as the group’s corporate compliance monitoring committee is due to convene a special meeting on Wednesday to deliberate on Samsung’s re-entry. With Samsung Group companies reportedly placing considerable weight on the committee’s recommendations, all eyes are on its decision.

According to sources on Tuesday, the committee’s interim meeting is scheduled to take place at 12:30 pm on August 16 at Samsung Life Insurance’s Seocho Headquarters in Seoul. The primary focus of this gathering is to discuss Samsung’s potential return to the FKI. It is anticipated that the meeting would result in recommendations from the committee, outlining the conditions and considerations for Samsung’s re-entry into the FKI.

Nonetheless, predicting the outcome of this meeting is a challenging task. The committee comprises seven members from diverse backgrounds, including Chairman Lee Chan-hee, advisory attorney at Yulchon LLC, each with the potential to present differing perspectives. Some speculate that the committee might emphasize the ethics committee suggested by Kim Byong-joon, acting chairman of the FKI.

An industry insider said that the recommendations might include mentions of the independence and effectiveness of the FKI’s ethics committee, and that the committee members will meticulously examine external perceptions regarding Samsung’s return to FKI.

Given Samsung Group’s consistent emphasis on its committee since it was established in 2020, the recommendations are expected to wield significant influence over future decisions by Samsung companies. Upon the issuance of these recommendations, it is likely that the five key Samsung Group companies - Samsung Electronics, Samsung SDI, Samsung Life Insurance, Samsung Fire & Marine Insurance, and Samsung Securities - will convene interim board meetings before the scheduled FKI special assembly on August 22.

The FKI’s special assembly is set to address the inauguration of Chairman Ryu Jin and the change of FKI’s Korean name, along with the absorption and integration of its subsidiary organization, the Korea Economic Research Institute (KERI). Notably, despite the exit of the four major conglomerates - Samsung, SK, Hyundai Motor, and LG - from the FKI, they remain members of the KERI.

Should these four conglomerates consent, KERI membership will be automatically transferred to the newly reinstated FKI members. The deliberations in the temporary board meetings of the five Samsung affiliates are likely to encompass this matter of automatic membership transfer. An industry insider said while Samsung committee’s recommendations are crucial, disagreements regarding Samsung Group’s return to the FKI might also arise during the board meetings.