Seeking to Regain Status as the 'Eldest in Business'... FKI Starts Anew as Hankyungyeop under 'Ryu Jin' Leadership

Temporary General Meeting at Yeouido FKI Building on the 22nd
Official Institution Name Changed to Hankyunghyup After 55 Years
'Madangbal' Ryu Jin, Chairman of Pungsan Group, Becomes Head of Hankyunghyup
Some Affiliates of the 4 Major Groups Join as Member Companies

"Although I was cautious about taking on a heavy responsibility during difficult times, I decided to accept the chairmanship because I believe I can contribute, even if only slightly, to restoring the trust of the people and helping our economy find a way forward in global competition."

This is what Ryu Jin, chairman of Pungsan and the inaugural chairman of the Korea Economic Association (HanKyungHyup), said in his inaugural speech. It marks the solemn first step toward reclaiming the status of the 'eldest brother' of the business community. Chairman Ryu has taken on the task of breaking the ties of collusion between politics and business and establishing HanKyungHyup as an economic organization trusted by the public.

The Federation of Korean Industries (FKI) held an extraordinary general meeting on the 22nd at the FKI building in Yeouido, Seoul, officially changing its name to HanKyungHyup and passing a resolution to appoint Ryu Jin as the new chairman.

Ryu Jin, Chairman of Pungsan, is attending the '2023 Federation of Korean Industries Extraordinary General Meeting' held at the Federation of Korean Industries Building in Yeouido, Seoul, on the 22nd. Photo by Jinhyung Kang aymsdream@

Chairman Ryu has served as vice chairman of the FKI since 2001 and currently serves as the Korean co-chair of the Korea-US Business Council. He is known domestically and internationally as a 'connector.' In particular, he is recognized as a US expert, having maintained a long-standing relationship with the family of former US President George Bush. Over multiple administrations, he has played a leading role as a bridge between Korea and the United States. He also has close ties with the heads of Korea's four major conglomerates, making him well-suited to represent corporate interests. The FKI describes him as the ideal person to lead HanKyungHyup as it transforms into a 'global think tank-type economic organization.'

However, Chairman Ryu carries a heavy burden. Above all, he must shed the stigma of being a 'politically collusive organization.' The FKI has faced hardships due to involvement in incidents such as ▲the 1988 fundraising for the Ilhae Foundation under former President Chun Doo-hwan ▲the 1995 election slush fund for former President Roh Tae-woo ▲the 1997 Se-poong scandal ▲the 2002 Grand National Party election fund bribery case. In 2016, during the state corruption scandal, it was revealed that the FKI led corporate fundraising for the K-Sports and Mir Foundations, branding it as the core of political-business collusion. It faced public condemnation and lost its position as the eldest brother of the business community to the Korea Chamber of Commerce and Industry.

Therefore, to relaunch as HanKyungHyup and strive to become an organization 'loved by the people again,' it is pointed out that it is crucial to both remove the label of political-business collusion and prove sincerity.

In response, Chairman Ryu delivered three key messages. These included ▲the association's commitment to presenting the direction for the Korean economy as a global think tank representing the business community ▲efforts to communicate with the public and propose practical measures to contribute to society, such as creating many good jobs ▲establishing an ethics committee to set ethical standards that meet public expectations and become a trusted economic organization.

He also announced an ethics charter expressing the determination to eradicate past practices of collusion with political power. The ethics charter includes ▲firm rejection of undue pressure from political and administrative authorities ▲commitment to spreading liberal democracy and market economy ▲leading corporate social responsibility and win-win cooperation between large and small-to-medium enterprises ▲leading innovation-driven economy and job creation.

The general meeting also approved the absorption and integration of the Korea Economic Research Institute (KERI), formerly a research institute under the FKI, into HanKyungHyup. As a result, some affiliates of the four major conglomerates (Samsung, SK, Hyundai Motor, LG), which had withdrawn from the FKI after the state corruption scandal but remained KERI members, gained membership in HanKyungHyup. This is the so-called return of the four major conglomerates.

Some affiliates of the four major groups (Samsung, SK, Hyundai Motor, LG), which had left the Federation of Korean Industries after the political scandal but remained members of the Korea Economic Research Institute, had their membership transferred to the Korea Employers Federation on this day.
[Photo by Yonhap News]

However, within the Samsung Group, among the five affiliates that were KERI members (Samsung Electronics, Samsung SDI, Samsung Life Insurance, Samsung Fire & Marine Insurance, Samsung Securities), Samsung Securities reportedly decided not to join HanKyungHyup. This appears to be influenced by concerns from Samsung’s Compliance Committee (Compliance Committee) and opposition from the board, reflecting doubts about the FKI’s commitment to reform. Earlier, Lee Chan-hee, chairman of Samsung’s Compliance Committee, stated, "I cannot be confident that the newly launched HanKyungHyup will completely sever the ties of political-business collusion and undergo a thorough transformation. One of the most important factors to break these ties is strict compliance monitoring. I strongly recommend that no political intervention, under any pretext, be allowed in the personnel composition and operation of the FKI."

It is widely expected that it will take some time before actual membership, involving payment of dues and participation in the chairman group, is completed. Once the membership process is finalized, HanKyungHyup’s revenue will increase significantly. As of the end of 2016, the FKI’s membership dues revenue reached 40.8 billion KRW, with about half borne by the four major conglomerates?Samsung, Hyundai Motor, LG, and SK. Samsung paid about 10 billion KRW, while SK, LG, and Hyundai Motor each paid about 5 billion KRW. However, following a wave of withdrawals by the four major conglomerates, the FKI’s membership dues revenue plummeted to 11.3 billion KRW in 2017. With increased revenue, organizational strengthening efforts befitting Korea’s representative economic organization are expected to proceed.

Meanwhile, Kim Byung-joon, chairman of the Community Chest of Korea, who took office as acting chairman of the FKI in February, plans to complete his initially announced six-month term and then serve as a senior advisor, continuing to provide guidance to HanKyungHyup.

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