"For FKI Reform"... Chairman Huh Chang-soo Announces Resignation

[Asia Economy Reporter Park Sun-mi] Huh Chang-soo, chairman of the Federation of Korean Industries (FKI), and Vice Chairman Kwon Tae-shin have expressed their intention to resign in order to reform the FKI, whose influence has shrunk following the political scandal. The FKI plans to complete the selection of the next chairman within next month.

According to business circles on the 13th, Chairman Huh convened a closed meeting and expressed his intention to resign ahead of the expiration of his term next month. Vice Chairman Kwon, who has been leading the FKI alongside Chairman Huh, also announced his intention to step down. Chairman Huh, who has served as FKI chairman for six consecutive terms since 2011, will complete his two-year term next month and has decided not to seek reappointment.

Accordingly, the FKI must nominate a new chairman at the regular general meeting scheduled for next month. No clear successor has been mentioned yet. Some in the business community have suggested that Sohn Kyung-shik, chairman of CJ Group and president of the Korea Employers Federation, might move to the FKI chairman position. However, there is also a sentiment that a more influential figure capable of bringing the four major conglomerates back as member companies should take the chairman role to restore legitimacy.

Chairman Huh’s decision not to continue as FKI chairman is understood to reflect the recognition that change is necessary to restore the FKI’s stature, which has diminished due to the political scandal. Chairman Huh has expressed regret that the FKI, which once played the role of the economic community’s 'eldest brother,' is currently unable to fulfill that role properly.

Currently, the four major groups?Samsung, SK, Hyundai Motor, and LG?have withdrawn from the FKI, so the organization must first secure member companies again to regain its former prestige. During the Moon Jae-in administration, the FKI was excluded from official events and overseas visits, and other economic organizations took on the role of 'eldest brother,' narrowing the FKI’s influence. In this regard, the FKI is reportedly planning to launch an innovation committee soon to discuss structural reform measures.

Some interpret that Chairman Huh’s absence from President Yoon Suk-yeol’s economic delegation visit to the United Arab Emirates (UAE) indicates that he had already been considering resignation. A business insider said, "Chairman Huh has expressed his intention to resign at the end of each term, but often continued due to the lack of a suitable successor. There is a consensus that change is needed to restore the FKI’s position, and there is an expectation that the chairman change will serve as an opportunity to regain the four major groups as members and start anew."