FKI vows to restore public trust, clean up image over past wrongdoings

Ryu Jin, new chairman of the Federation of Korean Industries (FKI), speaks during an inaugural press conference at the FKI's headquarters in Seoul, Tuesday. Courtesy of FKI

By Kim Hyun-bin

The Federation of Korean Industries (FKI), which used to be the country's premier business lobby group, pledged to regain public trust and improve its reputation that was tarnished following a political corruption scandal.

As part of the measures to revamp its image, the FKI changed its Korean name and appointed Poongsan Group Chairman Ryu Jin as its new head, Tuesday.

Ryu emphasized that the entity's top priority is to regain the trust of the public and win back the title of being the country's leading business lobby group. Its reputation took a huge hit after being implicated in a massive influence-peddling scandal that led to the impeachment of former President Park Geun-hye back in 2017.

"Our top priority is to restore public trust. We will clear up the shadows of the past and cut off any lingering mistakes. We'll practice ethical management and ensure that a transparent corporate culture takes root,” Ryu said in his inauguration speech after a general meeting at the FKI's headquarters in Seoul.

"As a group representing the business sector, we will present the direction our economy should take and formulate practical alternatives," he added.

Saying it is an honor for him to lead the lobby group and that he feels a sense of responsibility, Ryu added, "From this moment on, I will do my utmost to fulfill the given mission. I earnestly request your unwavering support as well."

Chairman of the Federation of Korean Industries (FKI) Ryu Jin, center, speaks during the 2023 FKI special general assembly at the FKI Conference Center in Seoul, Tuesday. From left are Lee Woong-yeol, honorary chairman of Kolon Group, Ryu, and Kim Byung-joon, former acting chairman of the FKI. Courtesy of FKI

As part of the reforms, the FKI changed its Korean name from "Jeongyeongryeon" to "Hangyeonghyeop" while the English name will remain unchanged. It also merged with the Korea Economic Research Institute (KERI), its affiliated research institution, aiming to become an organization similar to the Heritage Foundation, a non-profit U.S. think tank.

It also aims to engage in policy collaboration for private sector-led economic policies and respond to strategies in key industries and major countries.

During the assembly, the FKI also established a corporate ethics charter that outlines the principles it must uphold in the future. The charter includes provisions to resist undue external pressure and pursue ethical and transparent business practices. Additionally, a new independent body, the Ethics Committee, composed of a chairman and members appointed by the new leadership, will be established.

The lobby group also decided to expand its reach into new industries and emerging businesses, actively pursuing interactions and collaborations with other economic organizations, with the goal of making substantial contributions to the Korean economy.

"I am confident that the Korean economy has not yet reached its prime. Korea should confidently stand among the G7 nations. This is the objective, and the global stage should be our future, where we become the first movers," Ryu said. “The FKI will take the lead in pioneering the direction of the future generation and fulfilling the duty of corporate citizenship.”

Kim Byung-joon, who has been serving as the acting chairman of FKI since February, will continue his involvement as a standing adviser. GS Group Honorary Chairman Huh Chang-soo, who led the lobby group since 2011, has been handed the title of honorary chairman.