Organizational Shakeup
Chey Tae-won, chairman of the Korea Chamber of Commerce and Industry (KCCI) and chairman of SK Group, hinted at the possibility of SK Group’s return to the Federation of Korean Industries (FKI).
“We hope that the FKI will become a successful organization and we will help the FKI if we can,” Chey said at a press conference at the KCCI’s Jeju Forum held at a hotel in Jeju on July 12. In effect, he suggested the possibility of SK Group’s return to the FKI.
“I served as a member of the leadership of the FKI for 10 years, and I know the FKI very well,” Chey said, adding that the KCCI and the FKI are not in competition, and that he hopes for a good division of roles between the two organizations. The two organizations are like partners that can create synergies, Chey said.
Chey served as vice chairman of the FKI from 2005 to 2017. Chey’s father, the late SK Group Chairman Chey Jong-hyun, served as the 21st, 22nd and 23rd chairman from 1993 to 1998. Former SK Group Chairman Sohn Gil-seung was the 28th chairman.
The FKI is pushing for the four largest Korean business groups’ return to the fold. To this end, the FKI has crafted innovative proposals and is communicating with the four. Earlier, the FKI’s board of directors voted to convene a general meeting and revise its articles of association on July 4. On the same day, it decided to absorb the Korea Economic Research Institute (KERI). It will hold a general meeting at the end of next month to deal with the absorption and integration of KERI and the change of its name, which will be the Korea Businesspeople Association.
The four largest Korean business groups left the FKI but are still members of KERI so a lot of attention is being paid to see if the four will become members of the FKI after the merger. The four are also members of the FKI’s Korea-U.S. Business Council.
Samsung agreed to the dissolution of KERI after three meetings among the chief financial officers (CFOs) of five Samsung Group affiliates -- Samsung Electronics, Samsung SDI, Samsung Life Insurance, Samsung Fire and Marine Insurance, and Samsung Securities -- and reports to their CEOs. However, a proposal for an automatic transfer of KERI members to the FKI still needs to be discussed by Samsung’s board of directors and compliance committee. SK, Hyundai and LG said nothing has been decided yet.
The FKI will also elect a new chairman at its general meeting in late August. Potential candidates include Lotte Group Chairman Shin Dong-bin and Poongsan Group Chairman Ryu Jin. The chairmen of the four largest Korean business groups are also being mentioned as possible candidates.