ID :
201525
Tue, 08/16/2011 - 06:44
Auther :
Shortlink :
https://oananews.org//node/201525
The shortlink copeid
Big business lobby faces challenges on 50th anniversary
SEOUL, Aug. 16 (Yonhap) -- South Korea's big business lobby is facing tough challenges and calls for change to meet the latest social developments as it marks its 50th anniversary, industry insiders said Tuesday.
The Federation of Korean Industries (FKI), launched on Aug. 16, 1961, to represent the interests of large, family-owned conglomerates, currently counts 439 companies and 67 business-related organizations as members.
It is credited with working closely with the government to bring about the country's economic boom, but has received flak since the 1990s for failing to do more to push for shared growth that is critical for sustainable economic expansion.
The FKI helped create the Ulsan industrial complex and played a key role in the country's export drive with family-owned companies known as chaebol becoming major players in areas such as information technology, autos, ships and machineries.
The lobbying group, once led by Samsung Group founder Lee Byung-chul and Hyundai Group chairman Chung Ju-yung, created a so-called social contribution committee in 1999 and agreed to set aside 1 percent of their ordinary profits to put toward social welfare projects.
Despite such moves, chaebol have drawn criticism for ignoring the plight of ordinary workers who have been left behind in South Korea's economic growth. The FKI overall has struggled to redefine itself in the past decade and has been plagued by weak leadership as owners of the country's largest conglomerates have declined to take up its chairmanship.
"There has been considerable debate since no owner of a major conglomerate wanted to be chairman, which could have contributed to firmer leadership by the federation," a source said.
While members hope that incumbent FKI Chairman Huh Chang-soo, head of GS Group, the country's seventh-largest conglomerate, may be able to breathe new life into the federation, the association has come under growing criticism for focusing on lobbying to advance its members' interests.
Recently the association has been accused of calling on its members to lobby influential politicians one-on-one so as to block laws and policies that conflict with conglomerates' interests.
Reflecting the public's generally negative view of the FKI, President Lee Myung-bak urged businesses on Monday to promote more ethical management, become more responsible for their actions and try to reduce the gap between haves and have-nots.
In an address to mark South Korea's liberation from Japanese colonial rule, the president said there is a need to push for "ecosystemic development" on how big companies meet social expectations.
Lee and the government have been prodding FKI members to do more to create more jobs and increase investment that is important for long-term economic growth.
Besides being attacked for only representing the interests of big businesses, FKI members have started to criticize the federation's leadership for not doing enough to protect them from social criticism.
"There is a need by the FKI to overhaul itself so it can better represent the views of businesses to the general public and promote the companies' interests," a senior executive of a member company said.
The Federation of Korean Industries (FKI), launched on Aug. 16, 1961, to represent the interests of large, family-owned conglomerates, currently counts 439 companies and 67 business-related organizations as members.
It is credited with working closely with the government to bring about the country's economic boom, but has received flak since the 1990s for failing to do more to push for shared growth that is critical for sustainable economic expansion.
The FKI helped create the Ulsan industrial complex and played a key role in the country's export drive with family-owned companies known as chaebol becoming major players in areas such as information technology, autos, ships and machineries.
The lobbying group, once led by Samsung Group founder Lee Byung-chul and Hyundai Group chairman Chung Ju-yung, created a so-called social contribution committee in 1999 and agreed to set aside 1 percent of their ordinary profits to put toward social welfare projects.
Despite such moves, chaebol have drawn criticism for ignoring the plight of ordinary workers who have been left behind in South Korea's economic growth. The FKI overall has struggled to redefine itself in the past decade and has been plagued by weak leadership as owners of the country's largest conglomerates have declined to take up its chairmanship.
"There has been considerable debate since no owner of a major conglomerate wanted to be chairman, which could have contributed to firmer leadership by the federation," a source said.
While members hope that incumbent FKI Chairman Huh Chang-soo, head of GS Group, the country's seventh-largest conglomerate, may be able to breathe new life into the federation, the association has come under growing criticism for focusing on lobbying to advance its members' interests.
Recently the association has been accused of calling on its members to lobby influential politicians one-on-one so as to block laws and policies that conflict with conglomerates' interests.
Reflecting the public's generally negative view of the FKI, President Lee Myung-bak urged businesses on Monday to promote more ethical management, become more responsible for their actions and try to reduce the gap between haves and have-nots.
In an address to mark South Korea's liberation from Japanese colonial rule, the president said there is a need to push for "ecosystemic development" on how big companies meet social expectations.
Lee and the government have been prodding FKI members to do more to create more jobs and increase investment that is important for long-term economic growth.
Besides being attacked for only representing the interests of big businesses, FKI members have started to criticize the federation's leadership for not doing enough to protect them from social criticism.
"There is a need by the FKI to overhaul itself so it can better represent the views of businesses to the general public and promote the companies' interests," a senior executive of a member company said.
