Will Economic Organizations Facing Successive New Leaders Gain a Central Point... FKI Faces Recruitment Shortage

[Asia Economy Reporter Kim Hyewon] Major domestic economic organizations are welcoming new heads one after another this week. SK Group Chairman Chey Tae-won becomes the first head of the Seoul Chamber of Commerce and Industry among the leaders of the four major conglomerates, and LS Group Chairman Koo Ja-yeol rises as the first businessperson in 15 years to become the Chairman of the Korea International Trade Association. There is a sense of expectation that these figures will serve as a unifying voice for the business community, consistently speaking out against the current administration and National Assembly's one-sided corporate regulations. The Federation of Korean Industries, whose status plummeted following the Choi Soon-sil political scandal, is facing difficulties in finding a new chairman, highlighting the need for a strong reform effort. It is said that now is the time to coordinate with the five major economic organizations through this process.

According to the business community on the 23rd, the Seoul Chamber of Commerce and Industry held a general assembly and officially elected Chairman Chey as the next chairman. By convention, the chairman of the Seoul Chamber also concurrently serves as the chairman of the Korea Chamber of Commerce and Industry. The Korea Chamber's general assembly is scheduled for the 24th of next month, so Chairman Chey will assume that position a month later. This is the first time that a leader of one of the four major domestic conglomerates has taken the helm of the Korea Chamber.

The Korea Chamber, led by Chairman Chey, has seen heightened expectations regarding its status and role even before its launch. Chairman Chey has signaled change by appointing a vice-chairman team that includes many young IT entrepreneurs such as Kim Beom-su, Chairman of Kakao; Kim Taek-jin, CEO of NCSoft; and Jang Byung-gyu, Chairman of Krafton.

Chairman Koo, who has frequently appeared as a ‘regular’ candidate for economic organization leadership, succeeds his late father Koo Pyung-hoe, Honorary Chairman of E1 (served 1994?1999), as head of the Korea International Trade Association. The Trade Association is scheduled to hold its regular general meeting on the 24th to elect Chairman Koo. He will be the fourth businessperson to lead the Trade Association in its history. Since Kim Jae-chul, Honorary Chairman of Dongwon Group (served 1999?2006), the chairmanship has been held by former government officials. It has been 15 years since a businessperson last held the position.

Chairman Koo was chosen as the next chairman based on the business community’s view that, amid difficulties faced by export companies due to the COVID-19 pandemic, a seasoned businessperson is better suited than a government official. Since 2013, Koo has served as Chairman of LS Group, and following the tradition of shared management among siblings and family members rotating every nine years, he plans to hand over the group chairmanship to Koo Ja-eun, Chairman of LS Mtron, by the end of this year.

With Chairman Koo accepting the leadership role, the five major economic organizations?including the Trade Association, Korea Chamber of Commerce and Industry, Korea Employers Federation, Federation of Korean Industries, and Korea Federation of SMEs?will for the first time in 15 years enter an era led by businessperson chairmen.

The Federation of Korean Industries, which has long served as the ‘spokesperson’ for the business community, is in a difficult position as there is no suitable successor to Chairman Huh Chang-soo, Chairman of GS Engineering & Construction (Honorary Chairman of GS Group). Despite Chairman Huh repeatedly declining a fourth term, the nomination of a successor remains uncertain ahead of the board meeting on the 24th and the general meeting on the 26th this week.

Amid this leadership reshuffle, voices within the business community are calling for a redefinition of the functions and roles of economic organizations. In particular, during the legislative process last year and this year, when a series of regulatory bills such as the three corporate regulation laws and the Serious Accidents Punishment Act were enacted?laws that have dampened business activities?economic organizations expressed opposition dozens of times. However, criticism has been raised that their effectiveness was diminished because they voiced their opinions separately rather than in a unified manner.

This content was produced with the assistance of AI translation services.