FKI gains clout as KCCI struggles with ‘fake news’ controversy

The Federation of Korean Industries (FKI) is regaining stature as a major channel for the nation’s economic diplomacy by spearheading a series of high-profile global business forums.

The once-dominant business lobby saw its influence wane after its involvement in the 2016 corruption scandal that led to the impeachment of former President Park Geun-hye.

Following the scandal, major conglomerates withdrew their FKI membership en masse. This has allowed the Korea Chamber of Commerce and Industry (KCCI) to take the lead among the local business associations.

FKI, however, has restored much of its previous presence by successfully taking on a role as a key organization for Korea’s overseas economic engagement under the administration of President Lee Jae Myung.

The business lobby hosted a business forum between Korea and Brazil on Monday. A group of top conglomerate leaders, including Samsung Electronics Executive Chairman Lee Jae-yong, attended the high-profile event to seek business opportunities with Brazilian counterparts.

In November last year, FKI also successfully organized the Korea-United Arab Emirates business roundtable during Lee’s state visit to the country.

FKI Chairman Ryu Jin played a crucial role in elevating its presence. Ryu took office as the head of the business lobby in August 2023, and has since focused on rebuilding its identity and erasing its tainted image following the corruption scandal.

Federation of Korean Industries Chairman Ryu Jin delivers a welcome speech during a business forum between Korea and Brazil at Lotte Hotel in Seoul, Monday. Yonhap

Ryu is most famous as a U.S. expert with a strong network there. In January 2025, he was invited to U.S. President Donald Trump’s inauguration ceremony. Recognized for his efforts to revive FKI’s status, Ryu was reappointed as the head of the organization last year. His term ends in February 2027.

However, the KCCI, which has long filled the void left by the FKI fallout, is losing trust after it was mired in a “fake news” controversy related to its press release on inheritance tax.

Lee publicly rebuked the KCCI for failing to sort out reliable information. KCCI Chairman Chey Tae-won ended up offering public apologies for the controversy.

Despite its recent progress, FKI is still tasked with bringing back chiefs of the nation’s four major conglomerates — Samsung, SK, LG and Hyundai Motor — to its chairmen’s council. The council serves as FKI’s highest decision-making body.

The four groups withdrew from FKI membership in December 2016, but re-joined as members in 2023. Their leaders, however, have yet to return to the council.

Ryu has repeatedly expressed his hope for the business leaders’ swift return to the council, but the timeline remains unclear as the conglomerates are internally reviewing the agenda. It’s possible that FKI attains its goal before Ryu’s term ends next year.

“FKI is rapidly expanding its clout under the leadership of Ryu, but it still requires more time for the business lobby to completely regain its luster due to these unresolved key agendas,” an official from the industry said.