By Kim Jae-kyoung
Staff reporter
Federation of Korean Industries (FKI) Chairman Cho Suck-rai has resigned from the top post of the nation's largest business lobby for health reasons, the FKI said Tuesday.
His term was to expire in February next year.
An FKI representative said that the 75-year-old has been trying to recover from surgery he underwent last month to remove a tumor from his gallbladder.
"I have been trying to do my best to fulfill my role representing the business circle. But it is regretful that I am unable to serve my tenure because of health reasons," Cho said in a letter to FKI members and officers.
"I hope that the FKI will continue to play a key role in boosting the Korean economy," he added.
In March 2007, Cho, concurrently chairman of Hyosung Group, a mid-size conglomerate, took office at the FKI. In 2009, he extended his tenure for another two-year term at the lobby group, which represents the country's largest conglomerates.
The representative said the FKI will call a board meeting soon to elect a new chief.
It remains to be seen whether Cho will also step down from the chairmanship of Hyosung.
The group has been investigated by the prosecution since last year over allegations it created a slush fund through subsidiaries in the United States. The children of the owner were alleged to have used the money to purchase real estate overseas.
A Hyosung representative denied speculation that his resignation was related to the ongoing investigation.
"There is speculation that Cho's resignation was because of the investigation but this is totally groundless," a Hyonsung executive said.
The group has "special" ties with President Lee Myung-bak. Chairman Cho's nephew Cho Hyun-bum, an executive vice president of Hankook Tire, married Lee's daughter in September 2001.