Korea’s major biz lobby rebrands itself to show commitment to self-reform

[Photo by Yonhap]

In a demonstration of its dedication to self-reform, the Federation of Korean Industries (FKI), the primary business association representing the country’s major corporations, is poised to unveil an official change to its Korean moniker. It also aims to intensify its endeavors towards reshaping its organizational structure, thereby eradicating the entangled connections between politicians and business magnates.

The FKI will hold a special general meeting at the FKI Tower in Yeouido, western Seoul, on Tuesday morning to decide on matters including the name change.

This marks a historical milestone, as the organization’s Korean designation has remained unchanged for a span of 55 years, tracing back to its establishment in 1968.

While retaining its English name, the renewed identification pays homage to an economic consortium inaugurated in 1961 by thirteen business leaders, a group prominently featuring the late Samsung Group Founder, Lee Byung-chul. The consortium subsequently underwent a name change in 1968 to reflect its expanding scope.

Previously marred by criticism for its role in facilitating government-business collusion during the Park Geun-hye administration, the FKI is now taking a definitive step towards reformation. By rebranding itself, the organization aims to reestablish its original mission and aspirations, signifying a fresh start and a return to its founding principles.

At the general meeting, an ethics charter will be announced to declare the federation’s commitment to eradicate past practices of collusion with political power.

The charter is expected to include: firmly rejecting unfair pressure from political and administrative powers, promoting liberal democracy and market economy, leading corporate social responsibility and win-win cooperation between large and small companies, and leading innovation-led economy and job creation.

Meanwhile, Ryu Jin, chairman of Poongsan Corp., will be nominated as Chairman of the Federation.

Ryu is a member of the FKI leadership and Korean chairman of the Korea-U.S. Business Council jointly organized by the FKI and the U.S. Chamber of Commerce. He is known to be a highly knowledgeable and well-connected individual with experience on the global stage.

The FKI says Ryu is the right person to lead the organization as it seeks to transform into a global economic think tank.

Alongside Ryu, Kim Chang-beom, former ambassador to Indonesia at the Ministry of Foreign Affairs, is expected to serve as the full-time vice chairman.

The meeting will also decide on a proposal to absorb and integrate the Korea Economic Research Institute (KERI), a research organization under the FKI.

Accordingly, some affiliates of Korea’s four major conglomerates - Samsung, SK, Hyundai Motor, and LG - that withdrew from the FKI after the political manipulation fiasco but remained members of KERI will automatically gain membership at the FKI.

However, Samsung Securities Co., one of the five subsidiaries of Samsung Group that were members of KERI, has decided not to join the FKI, according to sources. The decision likely came on the board’s opposition and as the group’s compliance committee is not yet convinced of the FKI’s commitment to innovation.