Back to Basics
The Federation of Korean Industries (FKI) has announced a reform plan to change its name to the Korean Businesspeople Association (KBA) and to transform itself into a think-tank-type economic organization by absorbing and integrating its research units. The organization appears to be making a concerted effort to recover its status after hiring a former high-profile ruling party member as acting chairman in March.
“We have prepared the reform plan based on a painful reflection on the past roles and practices of the FKI, which missed the flow of history and operated with a focus only on relations between the Korean government and FKI member companies,” said Kim Byung-jun, acting chairman of the KFA, in a press conference at the organization's headquarters in the Yeongdeungpo district of Seoul on May 18.
First, the organization will change its 55-year-old name to the Korea Businesspeople Association. This was the FKI’s name when the organization was established in 1961. The organization explained that the name change reflects the FKI’s determination to return to its roots.
The FKI also announced a plan to build a governance structure to prevent abnormal connections between politicians and businesspeople by establishing an ethics management committee. The committee will serve as a unit to deliberate on matters that pose material and non-material burdens on member companies. “The composition of the ethics committee will be centered on non-businesspeople, and we plan to bring in respected people such as those in civil society,” Kim said.
Those in the Korean business community see the overhaul plan as a way to build a case for encouraging the four biggest business groups in Korea to come back to the FKI. “Although the FKI has resumed its roles as a bridge between the Korean government and Korean business circles, in reality the FKI cannot act as a major Korean business organization without the four groups. The FKI’s reform efforts may serve as a justification for the four business groups to return to the FKI, I think,” said an official of another economic organization.
The four biggest business groups in Korea refer to Samsung, Hyundai, SK, and LG. They have been prudent about rejoining the FKI.
The FKI is trying to catch the thoughts of those in the presidential office and the government. “I don't know if some effects are generated out of appointing Kim Byung-jun, a high-profile politician, as acting chairman of the FKI, but if the presidential office or the government opens communication channels with the Korean business community and asks the four business groups to return to the FKI, we have no choice but to positively respond to it,” said an official of one of the four business groups who declined to be named.