April 19, 2024

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[THE INVESTOR] Hyundai Motor Group on Jan. 19 said “nothing has been decided” on exiting the Federation of Korean Industries amid speculation that it is preparing to leave the nation’s richest business club that has been at the center of a controversy in the ongoing presidential scandal.

“We are still reviewing whether to leave the FKI or not,” a Hyundai Motor Group official told The Investor. “Nothing has been decided. So until an official decision is made, we are deferring the membership fee payment.”

Earlier, local media reported that South Korea’s largest automaker is set to withdraw from FKI, like its peers Samsung Group, LG Group and SK Group.

The 56-year-old FKI is suspected of playing a key role in collecting funds from the large business groups totaling 80 billion won (US$67.99 million) for two dubious foundations controlled by Choi Soon-sil, President’s Park Geun-hye’s confidante, who is at the center of the influence-peddling scandal. Since the revelations, there have been growing public calls to disband the lobby group that has been connected to a series of corruption scandals in recent years.

LG Group officially announced its withdrawal from the FKI in December, while Samsung Group and SK Group said they would stop paying membership fees and leave the organization.

The nation’s four largest conglomerates, including Samsung, Hyundai, SK and LG, make up more than half of the total yearly membership fees of 49.2 billion won collected from over 600 companies.

By Ahn Sung-mi (sahn@heraldcorp.com)