After 55 Years, FKI Changes Its 'Signboard'... Chairman Ryu Jin Says "Restoring Public Trust Is Top Priority" (Comprehensive)

Institution Name Changed to 'Hankyunghyeop'
Ryu Jin Expresses "Shame" Over FKI's 'State Capture' Scandal
Declares Determination to Overcome Collusion Between Politics and Business
Urgent Need to Establish Concrete Measures and Mechanisms

The Federation of Korean Industries (FKI), which lost its position as the leading business organization due to the stigma of "collusion between politics and business," is now making a full-scale effort to reinvent itself. After 55 years, the FKI has changed its name to the Korea Economic Association (KEA) and officially appointed Ryu Jin, chairman of the Poongsan Group, as its new president. The four major conglomerates (Samsung, SK, Hyundai Motor, LG), which had withdrawn during the political scandal, have also returned as members. The key issue now is whether the organization can provide institutional support sufficient to regain public trust.

On the 22nd, the FKI held an extraordinary general meeting, changed its name to the Korea Economic Association, and appointed Chairman Ryu Jin as the new president.

They also amended the articles of association to reflect the name change and added projects such as co-growth initiatives between large and small-medium enterprises and ESG (Environmental, Social, and Governance) sustainability projects to their objectives. By explicitly including co-growth and ESG in the articles of association, the newly launched KEA clearly expressed its commitment to prioritizing corporate social responsibility.

The press conference of Chairman Ryu Jin, who was inaugurated as the 39th chairman of the Federation of Korean Industries, was held on the 22nd at the Federation of Korean Industries Hall. Chairman Ryu is answering reporters' questions. Photo by Huh Younghan younghan@

Chairman Ryu said, "I feel a great sense of responsibility and the weight on my shoulders is heavy," adding, "Honestly, I tried not to take this role until the end, but since there was no alternative, I accepted it with the mindset of serving one last time." He continued, "Our top priority now is to restore public trust, and I believe I can contribute, even if only slightly, to that effort."

Regarding the FKI being identified as the main culprit in the political scandal, he expressed shame. Chairman Ryu stated, "We could have prevented it, but internally, there was no such system. That is the most shameful part, and I was the vice chairman at the time, so I nagged a lot, but it didn’t work well," adding, "I will make sure it never happens again."

He reiterated his commitment to thoroughly eradicating collusion between politics and business after taking office. To this end, the establishment of an Ethics Committee as an internal control system was explicitly stipulated in the articles of association. The details regarding the selection of committee members and the operation of the Ethics Committee will be finalized later.

Regarding the composition of the Ethics Committee, Chairman Ryu explained, "We have currently selected the chairman, but after appointing all five members, we will announce them all at once," adding, "We are waiting for approval from the Ministry of Trade, Industry and Energy regarding the integration of the FKI and the Korea Economic Research Institute, and we plan to announce the vice presidents and Ethics Committee members in the first or second week of September."

The Ethics Charter, which the secretariat and member companies must adhere to, was also adopted at the general meeting. The charter includes commitments such as ▲firmly rejecting and strictly responding to external pressure or undue influence ▲conducting business ethically and transparently ▲fulfilling corporate social responsibility and leading cooperation between large and small-medium enterprises ▲listening to the voices of the people and striving to help them enjoy a better life.

Ryu Jin, Chairman of the Korea Economic Association, is speaking at the '2023 Federation of Korean Industries Extraordinary General Meeting' held on the 22nd at the Federation of Korean Industries Building in Yeouido, Seoul. Photo by Kang Jin-hyung aymsdream@

Chairman Ryu announced that former chairman Huh Chang-soo would be appointed honorary chairman, and acting chairman Kim Byung-joon would move to an advisory role. In response to concerns that Kim Byung-joon’s political background might raise worries about collusion between politics and business, he said, "Although he was involved in politics in the past, I felt that he was someone worth learning from while working together at the FKI," emphasizing, "What matters is whether a person is worth learning from and helpful."

The four major conglomerates (Samsung, SK, Hyundai Motor, LG), which withdrew from the FKI following the Park Geun-hye administration’s political scandal, have joined the KEA in a manner where some affiliates formally became members. Even after the four major groups left the FKI, five Samsung affiliates (Samsung Electronics, Samsung SDI, Samsung Life Insurance, Samsung Fire & Marine Insurance, Samsung Securities), four SK affiliates (SK Inc., SK Innovation, SK Telecom, SK Networks), five Hyundai affiliates (Hyundai Motor, Kia, Hyundai Construction, Hyundai Mobis, Hyundai Steel), and two LG affiliates (LG Corp., LG Electronics) remained members of the Korea Economic Research Institute. Among these, Samsung Securities recently decided not to join the KEA after discussions. This is why there are questions about the "substantial return" of the four major groups.

Regarding the criticism that the merger of the FKI and the Korea Economic Research Institute was intended to induce the four major groups to join, Chairman Ryu said, "We did not induce them," adding, "The FKI merged out of necessity, and an opportunity was created for member companies to rejoin. I don’t think they joined forcibly."

Meanwhile, the Samsung Compliance Committee recommended immediate withdrawal from the KEA if there are any ▲immoral or illegal collusion acts between politics and business ▲improper use of membership fees or donations for purposes other than intended ▲illegal acts violating laws or articles of association, which do not align with the KEA’s promised role as a think tank-centered economic organization.

They also stipulated that when paying membership fees to the KEA, prior approval from the committee must be obtained, and if providing funds beyond the usual membership fees, the purpose and usage must be specifically confirmed and prior approval obtained. Additionally, they ordered that annual activity reports and financial statements from the KEA be notified and reported to the committee every year.

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