Extraordinary general meeting on the August 22
By Business Editor Lee Sam-sun
The return of Korea’s major Jaebeol business groups such as Samsung, SK, Hyundai and LG to the Federation of Korean Industries (FKI), an organization of Korean top business conglomerates, is expected to materialize very soon. T
The FKI, which is changing its name to the Korea Association of Business and Industry (KBA), is expected to welcome the four large business groups back as members and restore their status as Korea’s largest private business organizations.
It comes more than six years after the FKI was hit with bad news and scandal.
On Aug. 18, 2023, Samsung reportedly held an extraordinary meeting at Samsung Life Insurance building in Seoul, and recommended that the five affiliated companies of Samsung (Samsung Electronics, SDI, Life, Fire, and Securities) have discussed the question over whether or not to rejoin the FKI. Reports indicate that they would re-join the FKI on condition that they will immediately withdraw from it in the event of any irregularities or circumstances due to which they had withdrawn themselves in the past. Reports indicate that they wanted operational and accounting transparency of the organization.
Following the review, five companies, including Samsung Electronics, are expected to hold an extraordinary meeting of the board of directors by August 21 this year to decide whether to rejoin the FKI
However, it is expected that the payment of dues will be reviewed separately as it falls under 'external sponsorship expenditure'.
An official from Samsung is known to have told reporters after the meeting, "We are not making a definitive recommendation to join or not to join the FKI, but we first conveyed our concerns and recommended that if each company decides to rejoin, they should 'work under certain conditions.”
Many people in the business community in Korea had expected Samsung's decision to be a watershed moment in the return of the four major business groups to the FKI. Apparently conscious of this, the FKI is know to have held two extraordinary meetings.
Meanwhile, the Federation is expected to hold an extraordinary general meeting on the morning of August 22 to vote on a proposal to absorb and integrate its research institute, the Korea Economic Research Institute (Hankuk Kyeongje-in Yeonhap Hoe), and rename it the Hankyung Association, and to appoint Ryu Jin, chairman of Poongsan Business Group, as its new chairman.
SK (SK Innovation, Telecom, and Networks), Hyundai (Hyundai Motor, Kia Motors, Mobis, and Steel), and LG (LG Electronics) have maintained their membership in the organization.
It is expected that the four Jaebeol business groups in Korea, including Samsung, will make a statement at the extraordinary general meeting on the August 22 that they are willing to join (in fact, re-join) the FKI.
Each of the returning Jaebeol business groups company has reportedly completed its internal review of rejoining the organization. Unlike Samsung, a board resolution is not required, so the position is said to have been finalized by executives collecting opinions internally and reporting to the board.
About FKI:
According to sources at the Federation of Korean Industries, the Federation
suggests policy alternatives for national economic development based on the principles of market economy and puts forth efforts for integrating the Korean economy into the global economy.
Founded in August 1961 with the aim of fostering the development and enhancement of the national economy by promoting the advancement of major industries and international economic exchanges, based on efforts to unify the opinions of the business world on all related matters, including fiscal affairs, finance, industry, and trade, so as to help ensure the general consensus is reflected in government policies.