[Newsmaker] Current FKI chairman Huh to stay in office

Published : Feb 24, 2017 - 09:46 Updated : Feb 24, 2017 - 20:45

Huh Chang-soo, the current chairman of the Federation of Korean Industries, will stay in office for another three years as finding a new chief for the country's largest lobby body has made little progress with key members withdrawing their membership, industry sources said Friday.

FKI board members will recommend Huh continue his duties for another three years at a board meeting to be held later in the day, according to the sources.

The FKI board meeting came amid a mass withdrawal of key FKI members, including Samsung Group and Hyundai Motor Group, following the corruption scandal involving what is believed to be illicit donations arranged by the FKI for two sports foundations controlled by President Park Geun-hye's friend Choi Soon-sil.

The two leading business groups, along with many others, including SK and LG groups, have quit the business lobby after they and the FKI were implicated in the corruption scandal that has led to the impeachment of President Park.

GS Group Chairman Huh Chang-soo, who is expected to serve as FKI chairman for another three-year term. (Yonhap file photo)

The search for a new FKI chief has been fruitless amid a series of withdrawals of key member companies that is also threatening the very existence of the organization after more than 50 years since its foundation.

The four business groups -- Samsung, Hyundai Motor, SK and LG -- and their affiliates are said to have accounted for nearly half of the 50 billion won ($43.6 million) the FKI collected in membership fees last year.

Huh, whose term is due to end this month, has served as FKI chairman since 2011.

"We once again apologize for causing concerns to citizens and promise to emerge as a completely new entity through an overhaul," Huh said in a statement.

Huh, also chairman of energy and retail giant GS Group, said the FKI will redouble efforts to make its operations more transparent and clean, and sever collusive links between the political and business circles.

The FKI board members also picked Kwon Tae-shin, head of the Korea Economic Research Institute, as the organization's vice chairman. (Yonhap)