April 26, 2024

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[THE INVESTOR] SK Group, the nation’s third-largest conglomerate, on Feb. 16 said it will be withdrawing from the top business lobby, the Federation of Korean Industries.

SK joins Samsung, LG and other major business groups in leaving the FKI, which has been blamed for its role in a snowballing influence-peddling scandal involving President Park Geun-hye and her close aides.

The group’s two major affiliates -- SK Telecom and SK Innovation -- plan to offer their intention to withdraw from the FKI on the day, with 18 other SK companies following suit.

Prosecutors have charged Choi Soon-sil, a long-time friend of the president, on charges of strong-arming big companies to donate funds to dubious foundations controlled by Choi. The FKI was criticized for playing the role of a middleman.

The FKI was established by Samsung Group founder Lee Byung-chull back in 1961. Nearly half of its annual budget, worth about 90 billion won (US$77.40 million), comes from membership fees paid by major companies.

By Lee Ji-yoon (jylee@heraldcorp.com)