By Lee Hyo-sik
The Federation of Korean Industries (FKI) is facing the biggest crisis in its 55-year history, as more and more people are calling for the dissolution of the lobby, which primarily represents the interests of the country’s family-controlled conglomerates.
Opposition parties and progressive civic groups have been demanding that the FKI be dismantled due to its involvement in a series of controversies in which it allegedly acted as a private-sector apparatus promoting the policies of the President Park Geun-hye administration.
Now, conservative think tanks and even some FKI member companies have begun speaking against the organization, which was set up in 1961 after a military coup by former President Park Chung Hee.
FKI has often been at the center of many scandals over the years as it raised funds from large businesses for those in power in exchange for the government’s chaebol-friendly economic policies.
The Institute for Future State (IFS), a conservative think tank headed by Kim Kwang-doo, issued a joint statement with the progressive Solidarity for Economic Reform, Tuesday, calling for the dismantling of FKI. Kim served as one of President Park’s key economic advisors during the 2012 presidential election.
The two institutes called on FKI member companies to disband the lobby, arguing that it has no more roles to play.
“FKI has failed to regain the public trust even if it tried to clear suspicions surrounding the Mir Foundation and the K-Sports Foundation,” they said. “Its existence has become a burden for its members and doesn’t play any positive role for the Korean economy. We urge member firms to dissolve FKI.”
Over the past few weeks, the lobby has been facing criticism for raising funds from member firms to create the two controversial foundations, which critics say are run by people close to President Park.
Early this year, FKI also drew strong protest from opposition parties and liberal civic groups for giving money to the right-wing Korea Parent Federation in return for allegedly organizing pro-government rallies.
On Wednesday, Rep. Lee Un-ju of the main opposition Minjoo Party of Korea criticized the Korea Development Bank (KDB), the Export-Import Bank of Korea, Korea Electric Power Corp. and 16 other public enterprises for paying membership fees to FKI, which has more than 600 fee-paying members.
“It is hard to understand that these state-run companies have been paying FKI, an interest group for conglomerates, for years,” Rep. Lee said. “It is unthinkable that they give taxpayer money to FKI, which spends it for chaebol. Public companies should immediately leave the lobby.”
During the National Assembly’s audit of government agencies, Tuesday, KDB Chairman Lee Dong-geol said he will consider canceling the bank’s FKI membership.
Opposition parties have been stepping up their pressure on FKI to break up voluntarily, claiming that it is a symbol for the cozy politics-business ties in the past.
Rep. Park Young-sun of the Minjoo Party of Korea said that FKI has been involved in numerous illicit dealings with those in power over the decades. “FKI has become a lobby for special interests, orchestrating many politically-motivated activities. I think now is the time for the organization to disappear.”
The People’s Party also issued a statement, demanding FKI dissolve itself. “It is not a business group but a political organization. We want it to be dismantled immediately.”
In response, FKI officials said they have nothing to say, adding that everyone is entitled to his or her own opinion.