GS Chairman Huh stuck with scandal-hidden FKI
Business lobby
The Federation of Korean Industries (FKI) will hold onto its chairman for another two years to continue leading the chaebol lobby group which is facing its worst crisis in its 56-year history.
The lobby group’s board held a meeting at its headquarters on Yeouido, southern Seoul, Friday, where they chose to renew Chairman Huh Chang-soo for another term.
Huh Chang-soo, also chairman of GS, has served as FKI chairman for three consecutive terms.
He had made it clear he wanted to quit, but the FKI, which failed to find a successor, concluded that Huh is the best person to get the FKI out of trouble.
At his inauguration speech, Huh, who is nicknamed the “gentleman of Korea Inc.,” said he will focus on renovating the FKI.
The lobby group had its reputation tarnished in the political corruption scandal involving President Park Geun-hye and her longtime friend Choi Soon-sil, as it turned out the FKI had worked as Cheong Wa Dae’s channel to force conglomerates to donate money for two foundations controlled by Choi Soon-sil. FKI Vice Chairman Lee Seung-chul, who resigned Friday, turned out to have played a major role in the fundraising for the Mir Foundation and K-Sports Foundation.
Amid criticisms that conglomerates donated money to get unjust favors from Cheong Wa Dae, its key members including the country’s top four conglomerates — Samsung Group, Hyundai Motor Group, SK Group and LG Group — have withdrawn from the business lobby group. As the four have been paying nearly 80 percent of the total membership fees, the FKI is seeing its survival threatened.
There has also been growing demand among the National Assembly and NGOs for the FKI to disband. The FKI also had stirred controversy by supporting far-right NGOs which were supportive of President Park Geun-hye.
For survival, the chaebol lobby group is preparing an overhaul of its system. The FKI board announced earlier that it will cut this year’s budget by 40 percent.
Huh suggested three areas of focus in innovation — rooting out collusive links between politics and businesses, enhancing transparency and strengthening its role as a think tank.
“The FKI will stand firmly against unjust pressures from outside. We will also prepare a system to prevent any corrupt collusion,” Huh said.
“All activities of the FKI including its businesses and accounting will be made public in more detail to enhance transparency. We will also strengthen our role as a think tank, suggesting diverse measures for economic development.”
The FKI plans to set up an innovation committee to come up with concrete innovation plans.