Lee Min-hyung joined The Korea Times in 2014 and has worked as a journalist mainly in Korea’s finance, tech and automotive industry. He specializes in content creation, breaking news and in-depth analysis currently on transportation and mobility. You can reach him via mhlee@koreatimes.co.kr.
FKI's clout grows as more companies become members
A signboard of the Federation of Korean Industries is set up in front of its Yeouido headquarters in Seoul in this file photo. Yonhap
By Lee Min-hyung
Firms join business lobby for exchanges with government, other members
The Federation of Korean Industries (FKI) aims to boost its influence by accepting dozens of the nation’s major companies as new members, according to industry officials, Thursday.
The FKI was once regarded as one of the most influential business lobby groups in the country. However, in 2017, it experienced a decline in its influence after Korea's four largest conglomerates — Samsung, SK, Hyundai Motor, and LG — withdrew their memberships in the aftermath of the escalating political scandal that led to the impeachment of former President Park Geun-hye.
The number of its member companies then nearly halved to 300. But after the big four conglomerates returned to the FKI in August 2023, the business lobby is on rapid track to regain its influence and trust from business circles. A group of 420 firms are now members of the FKI.
The figure is forecast to rise further after dozens of new companies — such as POSCO Holdings, Amorepacific and EcoPro – have submitted their applications for membership. The FKI plans to hold a regular general meeting on Friday morning where their membership applications will be decided.
Federation of Korean Industries Chairman Ryu Jin speaks during a press conference at its headquarters in Seoul, Dec. 20, 2023. Yonhap
“Details will be confirmed after the meeting, but we cannot disclose any other specifics — such as the list of the companies — for the time being,” a spokesman at the FKI said.
Officials from the companies said they decided to become FKI members in order to tighten relationships with other industry partners and the government.
“We will be able to gain a number of advantages after joining the FKI, as it will be easier for us to deliver our requests or complaints to the government by means of the business lobby,” an official from a company that submitted its request for FKI membership said on condition of anonymity.
“On top of that, we can build tighter exchanges with hundreds of other FKI member companies. After the four big conglomerates rejoined the FKI, it has become a trend for other smaller firms to follow similar steps.”
A spokesman for POSCO Holdings said the company delivered its intent to join the FKI last year, and is ready to play a role as a member of the business lobby after its upcoming decision. But the official did not deliver any other details, as the plan has not yet been approved by the FKI.
Another official from a company seeking FKI membership said it aims to increase synergy with other bigger conglomerates.
“The four big firms and hundreds of other leading industry players are on a similar path, hoping to create more partnerships and business synergy with other FKI member companies,” the official said.
The FKI plans to increase the number of its members to more than 600, in a bid to recover its reputation and play a bigger role in supporting the nation’s business circles.