Nam Hyun-woo has worked as a staff writer at The Korea Times since 2013, mostly covering business and politics. He currently belongs to the Business Desk where he covers topics such as emerging tech, AI, ICT and Korea's chaebol community. Prior to joining the team, he was the paper's correspondent for the presidential office of Korea during the Yoon Suk Yeol and Moon Jae-in administrations.
SK chief Chey ahead of Celltrion's Seo for new KCCI head
SK Group Chairman Chey Tae-won speaks at SK hynix plant in Gyeonggi Province, July 9. Cheong Wa Dae Press Corps
By Nam Hyun-woo
By Nam Hyun-woo
SK Group Chairman Chey Tae-won is emerging as the top candidate to be new chairman of the Korea Chamber of Commerce and Industry (KCCI), the country's largest and most influential business lobby group.
According to industry officials, KCCI Park Yong-maan's term will end in March. A KCCI chairman can serve two three-year terms, and Park has been leading the organization since 2013 after he succeeded to his predecessor's unfinished term.
The chairman of Seoul Chamber of Commerce customarily becomes chairman of the KCCI. The Seoul chamber, whose members include large conglomerates such as Samsung, Hyundai Motor, SK, LG and Lotte, will hold a general meeting in February to name its new head, and Chey will likely be Park's successor.
Although neither KCCI nor SK Group officially confirmed Chey's KCCI chairmanship, industry sources said Park was considering Chey as new chairman given his influence in the domestic business community and business philosophy of pursuing mutual growth and social values.
Park and Chey are known to have close relations. They exchanged their opinions and ideas on running businesses during KCCI's annual Jeju Forum last year, where Chey delivered a speech on SK Group's pursuit of social values.
Other top businesses' circumstances are also playing a role in Chey's emergence as top pick for the KCCI chairman.
Samsung Electronics Vice Chairman Lee Jae-yong is de-facto leader of Samsung, but is yet to become the official leader of the conglomerate, as his father and Chairman Lee Kun-hee is still in hospital due to a prolonged health condition.
Hyundai Motor Group Executive Vice Chairman Chung Euisun also faces a similar situation, as his father and Chairman Chung Mong-koo is retaining his position while stepping away from running the automaker directly.
Unlike them, Chey has been leading SK Group as chairman since 1998, growing the group into a top-tier player in telecom and petrochemical businesses.
“While the official chiefs of Samsung and Hyundai Motor are in hospital, LG Group Chairman Koo Kwang-moo is regarded as too young to take the job of representing Korean businesses, given he took the group's helm in 2018 at the age of 40,” one source said. “This situation makes Chey the top candidate to lead the KCCI, whose presence under the Moon Jae-in administration has ever increased.”
The KCCI's influence was amplified after the Federation of Korean Industries (FKI) took a back seat in the Moon administration. The FKI lost its core members ― Samsung, Hyundai Motor, SK and LG ― after it was revealed the federation tried to pressure 19 business groups here to donate 77.4 billion won to foundations established and controlled by Choi Soon-sil, a scandal that cost former President Park Geun-hye ― to whom Choi was a close confidante ― her presidency.
Reportedly, Chey has been refusing to take the KCCI chairman's post. Although SK Group did not officially comment about this, it is interpreted that the group's history is behind the refusal.
In 1993, Daehan Telecom, now SK Telecom, had to give up its bid in a government auction for a license to become a mobile carrier to avoid controversy, because the government chose the FKI to select the winner of the auction and Chey's father and former Chairman Chey Jong-hyun was then chairman of the FKI.
Given SK Group is exploring new business opportunities in various fields, the refusal is interpreted as a pre-emptive effort to rule out controversy over any abuse of influence as the KCCI chief, sources said.
Celltrion Chairman Seo Jung-jin speaks during a press conference at Incheon City Hall on May 16, 2019. Yonhap
Along with Chey, Celltrion Chairman Seo Jung-jin is also mentioned as a candidate for the KCCI chairmanship, as the drug making group's presence improved in the wake of the COVID-19 pandemic.
He has advantages as he promised to step down from his post at Celltrion at the end of this year, thus allowing him to pay greater attention to delivering businesses' voices to policy and lawmakers.
However, Chey appears to be ahead of Seo, as the former has richer experience in running a group having a portfolio covering various industries. Also, Celltrion is not a member of the Seoul Chamber of Commerce.