Kim Hyun-bin began his journalism career at Arirang TV from 2012 to 2017, specializing in defense, foreign affairs and the economy. In 2018, he joined The Korea Times, covering society and business, and is currently responsible for embassy affairs.
Will Samsung, SK, Hyundai Motor, LG rejoin FKI?
From left are Samsung Electronics Executive Chairman Lee Jae-yong, SK Group Chairman Chey Tae-won, Hyundai Motor Group Executive Chair Chung Euisun and LG Group Chairman Koo Kwang-mo. Korea Times files
By Kim Hyun-bin
Conglomerates set to decide on membership late August
By Kim Hyun-bin
Korea's top four business groups have drawn attention over whether they will rejoin the Federation of Korean Industries (FKI) as it moves to change its name and reorganize its structure in a bid to reclaim its lost status as the nation's leading business lobby, according to industry officials, Thursday.
Samsung, SK, Hyundai Motor and LG all withdrew their memberships after the entity was connected to the corruption scandal that put former President Park Geun-hye behind bars in 2017. The question of rejoining the FKI resurfaced, Tuesday, when it held an extraordinary general meeting and discussed its merger with an affiliated think tank, the Korea Economic Research Institute (KERI).
On that day, member companies, including the four major conglomerates, agreed to dissolve KERI and merge it with the FKI. The integration plan will be finally confirmed at a general meeting to be held next month.
However, the four major companies did not agree to proceed from KERI to become FKI members. They withdrew from the FKI following the corruption scandal but remained members of KERI. When KERI is absorbed and integrated into the FKI, it will be expected for KERI member companies to return to the FKI. But the four major groups drew a line over this matter.
In the case of Samsung, after receiving the dissolution plan from KERI, the chief financial officers of five companies, including Samsung Electronics, Samsung SDI, Samsung Life, Samsung Fire & Marine Insurance and Samsung Securities, held three meetings and agreed to the dissolution. However, the automatic membership succession needs to go through the board meetings of the five companies and the deliberation process of the Samsung Compliance Committee.
Other companies such as SK, LG and Hyundai Motor also have similar positions to Samsung. They agreed to dissolve KERI but did not agree to rejoin the FKI, stating that it is a matter to be decided later.
"It is still premature to return as FKI member companies," an official from a major conglomerate said. "If there was a request from the president, the conglomerates could join but until then the conglomerates will be hesitant to join under these circumstances.”
The four major groups distanced themselves from the FKI after the 2017 corruption scandal. However, company officials have been appearing recently at FKI-led events, leading to speculation about the four major groups returning to the FKI.
The FKI also led the economic delegation during President Yoon Suk Yeol's visits to the U.S. and Japan this year. At that time, the heads of the four major conglomerates including Samsung Executive Chairman Lee Jae-yong, SK Chairman Chey Tae-won, Hyundai Motor Executive Chair Chung Euisun and LG Chairman Koo Kwang-mo all joined the economic delegation.