April 27, 2024
Industrials
[IMPEACHMENT] FKI sees presence further slip away
[THE INVESTOR] The embattled business lobby group Federation of Korean Industries is stuck in a tight spot as it attempts to devise a reform plan without much enthusiasm or support from its major members.
None of the heads from the nation’s top five conglomerates -- Samsung, LG, Hyundai, SK and Hanwha -- attended the organization’s meeting in the morning on Dec. 15, which was held to gather opinions about the future direction of the organization.
The heads were absent from the meeting amid growing calls for the lobby group to disband. The FKI had spearheaded the collection of controversial donations from the conglomerates for the Mir and K-Sports foundations allegedly set up by President’s longtime friend Choi Soon-sil last year. The federation raised more than 70 billion won ($59 million) from the companies.
“We didn’t want to be under any media spotlight by meeting with the federation amid growing public criticism,” said an anonymous official from one of the five conglomerates when asked why the company’s head did not show up.
The KFI plans to map out a final plan to reform or abolish the organization by February next year when a regular meeting is held. They are set to gain approval for the plan from around 600 member companies at the meeting.
The reform plan is expected to be mainly about transforming the organization into one like the US conservative think tank Heritage Foundation.
However, chances are still high that the federation may entirely be abolished as a series of companies continue to jump ship. The heads of major conglomerations including Samsung, SK and LG showed their willingness to leave during a parliamentary hearing on Dec. 6. State-run financial institutions, including the Korea Development Bank, Export-Import Bank of Korea and Industrial Bank of Korea, also said they would leave.
The major companies’ departure from the FKI would be a financial blow to the federation. Member companies currently give around 40 billion won to the FKI, whose total revenue is around 70 billion won. Among this amount, 20 billion won comes from the top five conglomerations.
Kim Sang-jo, chief of the progressive group People’s Solidarity for Participatory Democracy, said, “The FKI’s overhaul is meaningless as the federation was originally born from the politics and corporate nexus which has long been an obstacle to fair market economic development.” The civic group has long been calling for the abolition of the lobby group.
Amid the murky future of the federation, it recently halted its recruiting process and informed this to the final candidates waiting for executive interviews.
By Shin Ji-hye/The Korea Hearld (shinjh@heraldcorp.com)
None of the heads from the nation’s top five conglomerates -- Samsung, LG, Hyundai, SK and Hanwha -- attended the organization’s meeting in the morning on Dec. 15, which was held to gather opinions about the future direction of the organization.
The heads were absent from the meeting amid growing calls for the lobby group to disband. The FKI had spearheaded the collection of controversial donations from the conglomerates for the Mir and K-Sports foundations allegedly set up by President’s longtime friend Choi Soon-sil last year. The federation raised more than 70 billion won ($59 million) from the companies.
“We didn’t want to be under any media spotlight by meeting with the federation amid growing public criticism,” said an anonymous official from one of the five conglomerates when asked why the company’s head did not show up.
The KFI plans to map out a final plan to reform or abolish the organization by February next year when a regular meeting is held. They are set to gain approval for the plan from around 600 member companies at the meeting.
The reform plan is expected to be mainly about transforming the organization into one like the US conservative think tank Heritage Foundation.
However, chances are still high that the federation may entirely be abolished as a series of companies continue to jump ship. The heads of major conglomerations including Samsung, SK and LG showed their willingness to leave during a parliamentary hearing on Dec. 6. State-run financial institutions, including the Korea Development Bank, Export-Import Bank of Korea and Industrial Bank of Korea, also said they would leave.
The major companies’ departure from the FKI would be a financial blow to the federation. Member companies currently give around 40 billion won to the FKI, whose total revenue is around 70 billion won. Among this amount, 20 billion won comes from the top five conglomerations.
Kim Sang-jo, chief of the progressive group People’s Solidarity for Participatory Democracy, said, “The FKI’s overhaul is meaningless as the federation was originally born from the politics and corporate nexus which has long been an obstacle to fair market economic development.” The civic group has long been calling for the abolition of the lobby group.
Amid the murky future of the federation, it recently halted its recruiting process and informed this to the final candidates waiting for executive interviews.
By Shin Ji-hye/The Korea Hearld (shinjh@heraldcorp.com)
