[People 人] Son Kyung-sik, the 'Elder Statesman' of Business Who Elevated the Status of the Korea Employers Federation... Enhancing Corporate Competitiveness with the New Government

Son Kyung-sik Re-elected as Chairman of the Korea Employers Federation
Challenges Ahead Including Relations with the New Government

Son Kyung-sik, Chairman of the Korea Employers Federation (KEF) / Photo by Hyunmin Kim kimhyun81@

[Asia Economy Reporter Kiho Sung] The third term of Sohn Kyung-shik, Chairman of the Korea Employers Federation (KEF), has begun. The chairman's team is highly regarded for Sohn's significant role in internal system innovation and enhancing the status of the comprehensive economic organization. Especially this year, with a new government taking office, Sohn's leadership and role have become even more crucial in representing corporate interests during economic policy formulation and responding to pro-labor union policies, which served as a foundation for his third consecutive term. However, the challenges he faces are not insignificant. The corporate environment remains tough, from establishing relations with the new government to responding to various regulations.

Sohn Kyung-shik’s ‘4 years at KEF’... Elevating the Status of a Comprehensive Economic Organization

On the 22nd, KEF held its 53rd regular general meeting at the Chosun Hotel in Sogong-dong, Seoul, where the members unanimously agreed to extend Chairman Sohn’s term by another two years. Although the KEF chairman’s term is two years, there is no limit on reappointment. The late Kim Yong-ju, the founding chairman of KEF, and the late Lee Dong-chan, the second chairman and honorary chairman of Kolon, served for 12 and 15 years respectively.

Chairman Sohn is credited with elevating KEF’s organizational status over the past four years. This is particularly notable since the Federation of Korean Industries (FKI) lost its standing as the ‘representative business organization’ after being embroiled in the 2016 political scandal.

Since Sohn’s inauguration in March 2018 and his successful reappointment in 2020, he has played a major role in innovating internal systems and restoring KEF’s status as a comprehensive economic organization. Under Sohn’s leadership, KEF has gone beyond its traditional role as a labor-management relations specialist organization. Since the Moon Jae-in administration began, KEF has frequently discussed various economic issues with the government and political circles, emerging alongside the Korea Chamber of Commerce and Industry as a representative economic organization of the business community.

Lee Jae-myung, the Democratic Party presidential candidate, Sohn Kyung-shik, chairman of the Korea Employers Federation, and Kim Ki-moon, chairman of the Korea Federation of SMEs, are meeting and greeting each other at an event. Photo by the National Assembly Press Photographers Group

This elevated status of KEF was also evident during the recent presidential election. Major candidates such as Lee Jae-myung of the Democratic Party and Yoon Seok-youl of the People Power Party visited KEF to communicate with Chairman Sohn. It was a moment that reaffirmed Sohn’s role as a ‘senior elder’ and ‘spokesperson’ of the business community.

The KEF chairman’s board explained the reason for Sohn’s reappointment, stating, "In the presidential election phase and to respond to numerous pro-labor union policies, the experience and leadership of Chairman Sohn Kyung-shik are necessary."

Challenges Ahead: Relations with the New Government and Integration with FKI

Some voices express regret over the four years of Sohn’s leadership at KEF. The Moon Jae-in administration, having secured support from the two major labor unions, the Korean Confederation of Trade Unions and the Federation of Korean Trade Unions, actively pursued pro-labor policies. Although KEF voiced strong opposition, it ultimately failed to effectively block the implementation of pro-labor policies such as the Fair Trade 3 Acts and minimum wage increases.

The Serious Accidents Punishment Act, which the industry strongly opposed, has been in effect since the 27th of last month, and the introduction of labor directors in public institutions is scheduled for July. The time-off system, directly related to KEF as a ‘labor-management relations specialist organization,’ has also passed the National Assembly’s Environment and Labor Committee’s bill review subcommittee.

Therefore, how the newly inaugurated government and KEF maintain their relationship is expected to be a key challenge for Chairman Sohn. Especially since presidential candidates from both major parties emphasized ‘pro-business’ stances during the election, finding common ground with them is seen as crucial to achieving different results from the past four years.

Conscious of this situation, Chairman Sohn stated, "With the launch of the new government, we will newly establish policy networks with the government and the National Assembly to strengthen corporate competitiveness and propose alternatives for national economic development." He emphasized, "We will strive harder to improve unreasonable regulations in industrial sites and create a business environment where companies can freely focus on management activities to enhance the competitiveness of our companies."

Last year, Chairman Son Kyung-sik and Ambassador Xing Haiming are having a conversation at the 'KCCI Chairman Group Meeting Invited by the Chinese Ambassador to Korea.' / Photo by Moon Ho-nam munonam@

There is also interest in whether the long-emphasized integration with the Federation of Korean Industries (FKI) will be re-discussed. Since Sohn first proposed integration after the KEF regular general meeting in February last year, he has repeatedly mentioned the topic officially.

At the New Year press conference held on the 10th, he reignited the integration debate, saying, "KEF has played the role of an economic organization leader for the past five years, but is there a need to have two such organizations?" He added, "Economic organizations must unite their strength. KEF and FKI should integrate to solve various problems." Sohn also suggested that the two organizations should merge to create a research institute that plays a role similar to the Heritage Foundation in the United States.

However, the prevailing view is that the ‘KEF-FKI’ integration will not reach a conclusion in the short term. The FKI side has clearly rejected the idea each time Sohn mentioned integration, saying, "Now is not the right time." Established in 1961, FKI emphasized the need for an independent employer organization specializing in labor relations and founded KEF as a separate entity in 1970. Given the distinct roles and purposes of the two organizations, the consensus is that integration will be difficult.

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