Future of FKI
Samsung Electronics officially announced its withdrawal of membership from the Federation of Korean Industries (FKI), the nation's largest business lobby, on Feb. 6, saying, “We formally submitted a document of withdrawal to the FKI.”
The move came only two months after Samsung Electronics Vice Chairman Lee Jae-yong said before a parliamentary hearing in December last year, “The company will no longer pay the FKI membership fee and will withdraw from the group.”
Samsung Electronics said, “Starting with Samsung Electronics, other Samsung affiliate companies are also expected to defect from the body soon.
Samsung's 14 other affiliates, including Samsung Life Insurance, Samsung C&T, Samsung SDI, Samsung Securities, Samsung Fire & Marine Insurance, Samsung Display, Samsung Engineering, Samsung Heavy Industries, Samsung Card and Samsung SDS, are among the members of the FKI.
When the affiliates pull out of the FKI one after another and Hyundai Motor Group Chairman Chung Mong-koo, who showed his intention to leave the FKI in the past, and SK Group Chairman Chey Tae-won submits a document of withdrawal to the FKI, the FKI will not be able to survive, according to industry sources.
LG Group already decided to leave the FKI last year as well.
The FKI faces growing calls for its dissolution as it allegedly supported the Korea Parent Federation and served as the collector of funds for the Mir and K-Sports foundations mired in the Choi Soon-sil scandal this year.
If major conglomerates, including Samsung, withdraw from the FKI, the FKI can be in danger of dissolution. Accordingly, the FKI’s board meeting to be held soon is expected to be a watershed that determines its direction in the future. This is because the four major conglomerates – LG, Samsung, SK and Hyundai – pay a total of 20 billion won (US$17.57 million) a year in annual membership dues to the FKI, accounting for a third of the FKI's annual membership dues collected from 600 member companies.