FKI under siege over financing scandals
By Kim Tae-gyu
The Federation of Korean Industries (FKI), the nation’s largest business lobby group, is facing growing criticism for its involvement in a series of scandals.
Some even call for disbanding the 55-year-old organization that was set up just after the military coup of former President Park Chung-hee, the father of President Park Geun-hye.
Early this year, the FKI raised the public’s ire as it was found to have wired as much as 520 million won ($550,000) to the Korea Parent Association between 2012 and 2014, which helped the far-right civic group organize a series of pro-government demonstrations.
The main opposition Minjoo Party of Korea (MPK) said such a move was clearly political intervention by a business entity, which it said will end up shaking the foundations of democracy here.
Soon after the accusation, the FKI caused a dispute again because its members were allegedly forced to give donations to the Mir Foundation and the K-Sports Foundation.
Rep. Oh Young-hun of the MPK said that the Mir Foundation received 6.8 billion won each from SK hynix and Hyundai Motor after it was established last October. He said Samsung Electronics paid 6 billion won while LG Group and POSCO contributed 4.8 billion won and 3 billion won, respectively.
The K-Sports Foundation, founded in January, received 4.3 billion won from Hyundai Motor and 3 billion won apiece from LG and Samsung Life Insurance.
Suspicions are that big companies have had their arms twisted by the FKI to help the two cultural foundations, which the opposition camp contends are controlled by Choi Seo-won.
Choi is the daughter of a deceased mentor of President Park and ex-wife of Park’s former confidant Jeong Yun-hoe.
The FKI said its members voluntarily participated in the fund-raising campaigns but few seem to buy the explanation that conglomerates paid such big money on their own to entities they are not related to.
The Mir Foundation is geared toward promoting Korean culture while the K-Sports Foundation has the goal of introducing the excellence of Korean sports to the world.
Against this backdrop, opposition parties are demanding that the FKI shut down, and so are many observers.
“I think that the FKI is responsible for the long-lasting and inappropriate relationship between business and government,” said Prof. Lee Phil-sang at Seoul National University.
“In this climate, many question the reason for the existence of the body. If the FKI keeps carrying out negative activities, it would be better for it to disband instead of creating more concerns.”
Prof. Kim Sang-jo at Hansung University concurred.
“The FKI seems to have lost the ability to clean its own house so as to become more transparent. I believe that it is time for the organization to be dismantled,” Kim said.
“Without the FKI, there would be no problem in communication between business and government because the Korea Chamber of Commerce and Industry would then take charge of the job.”
GS Group owner Huh Chang-soo currently doubles as chairman of the FKI, which includes big chaebol such as Samsung, Hyundai Motor, LG, SK and Lotte. The day-to-day management of the lobbying arm is controlled by FKI Vice Chairman Lee Seung-cheol.