Home > Industries > FKI Board To Decide On New Chief In Upcoming Assembly
Industries

FKI Board To Decide On New Chief In Upcoming Assembly

By February 17, 2017 at 6:13 am
The FKI allegedly played a key role in forcing its members to donate almost 80 billion won to the two dubious foundations controlled by Choi Soon-sil. (Photo : Belle News)

The board of the Federation of Korean Industries (FKI) will try to salvage their organization's very own existence as they set to discuss reform measures in a meeting scheduled next week following recent mass departures by its major members.

The appointment of a new FKI chief is likely to be on the agenda during the board's general assembly slated next Friday, FKI officials said. 

Outgoing chairman Huh Chang-soo may be on his way out but the organization's efforts to find a replacement could mean very little after the withdrawal of its key members, including Hyundai Motor Group and Samsung Group.

Huh said in December that he will be stepping down as FKI chief, and apologized for the lobby group's involvement in a massive corruption scandal that involved President Park Geun-hye and her confidante Choi Soon-sil.

One of FKI's concerns is that it will lose its status and leverage if it selects a head outside the top 10 South Korean conglomerates. 

There was public outcry for the dissolution of the lobby group, which allegedly coerced members to donate huge sums of money to Choi's two dubious foundations. 

The FKI and its officials allegedly played a key role in forcing FKI members to donate almost 80 billion won to the two sports organizations controlled by Choi. 

After the scandal erupted, major FKI members such as Hyundai Motor and Samsung announced their decision to withdraw from the lobby group.

With other key members SK and LG groups also leaving, the FKI faces a possible collapse given the group's heavy reliance on the membership fees paid by its huge conglomerate members.

The group spends about 40 billion won every year, which is provided by over 600 firms with half of the amount coming from Hyundai, Samsung, SK and LG. 

Samsung, South Korea's biggest company, paid about 10 billion won a year in membership fees. 

With the exit of the four major members, industry watchers predict that other groups may also decide not to pay membership fees to the organization. 

Like Us on Facebook