In recent months, the Federation of Korean Industries, the country’s main business lobby, has been standing up to the political parties’ moves to tighten the reins on conglomerates.
Though public concern is mounting over the concentration of economic power on big businesses, there could be some rationale for its argument that the politically-motivated regulatory pressure could hamper corporate activity and national competitiveness. It may be common sense that the organization should behave properly to strengthen, or at least not to weaken, its case at this sensitive time.
In this sense, it is hard to understand that an FKI-affiliated institute had organized a free education and tour program exclusively for the children of lawmakers only to cancel it in the face of criticism from civic groups and even some corporate leaders.
Under the five-day program named the “Next Generation Leadership Camp,” about 40 college-age children of legislators were to attend lectures on market economy and tour the Yeosu Expo as well as industrial facilities.
The FKI said the program had been called off due to the fewer than expected number of applicants. But it appeared the group had been driven into canceling it after coming under the criticism that it was attempting to lobby lawmakers to ease their stance on reforming conglomerates by offering favors to their children.
The aborted program apparently shows the FKI still remains insensitive to public anxiety over growing social and economic polarization, which is fuelling the political competition to come up with measures to tame big businesses in the run-up to the presidential election in December.
If not, it should have avoided organizing the improper event at an inappropriate time.
The FKI also faced public criticism last year after it was revealed that the organization had assigned key member companies to lobby some influential politicians to ease pressure on large businesses.
Such ill-conceived attempts would not only weaken its case in the argument with political circles but also have led to amplifying calls for the FKI itself to be dissolved.
Former lawmaker Kim Jong-in, who has been at the forefront of the ruling Saenuri Party’s push to restrict the abuse of economic power by conglomerates, reportedly said it would be desirable for the business lobby to be scrapped if it was to “continue going in that way.”
After resigning as head of a commission on shared growth between large and small businesses in March, former Prime Minister Chung Un-chan also indicated the FKI might have to consider breaking up.
The organization should now realize what it may regard as small mistakes could result in aggravating the public sentiment to the point of sweeping it away.
