FKI grows influence by welcoming Naver, Kakao, HYBE

The logo of the Federation of Korean Industries is seen in front of its headquarters in Seoul in this undated photo. Yonhap Chairman of major business lobby to extend term for another two years By Lee Min-hyung Ryu Jin, chairman at Federation of Korean Industries (FKI) / Courtesy of FKI The Federation of Korean Industries (FKI) is widening its clout as more tech-savvy information technology (IT) firms and emerging business powerhouses are set to join the major business lobby. The companies include Naver and Kakao, Korea's leading internet and mobile platform operators and HYBE, the nation's largest music label that manages K-pop juggernaut BTS.

Dunamu, the operator of influential crypto exchange Upbit, also applied to become members of the FKI. The FKI is set to admit the companies as members during its regular general meeting on Thursday. The business lobby was one of the nation’s most influential business lobby groups until the mid-2010s, but it has since lost its reputation after the nation’s leading conglomerates — such as Samsung, SK, Hyundai Motor and LG — withdrew from the group in 2017 due to their involvement in a political scandal, which led to the impeachment of former President Park Geun-hye.



However, the FKI is on track to recover its glory by expanding the number of its member companies. In 2016, the number reached 639, but now, the figure stands at 420. Last year, the four major conglomerates rejoined the FKI and influential companies from not only the manufacturing sector but also IT and emerging industries are moving to become members of the organization.

Naver and Kakao recently sent their applications for membership upon the FKI's request. The inclusion of HYBE and Dunamu as new FKI members is also widely expected to help the lobby recover its tainted reputation. HYBE Chairman Bang Si-hyuk and Dunamu CEO Lee Sirgoo will attend the upcoming FKI general meeting and meet with other business tycoons who will also attend the event.

Their inclusion reflects the rapidly changing business landscape where companies in the entertainment and cryptocurrency sectors have achieved noteworthy growth in recent years. FKI Chairman Ryu Jin emphasized the urgent need to welcome more members from the entertainment and IT sectors in a press conference in 2023 after taking office as the FKI's new leader. As part of Ryu's commitment to embracing diversity in membership, the FKI welcomed Wemade, a game publisher, as its new member last year, a first among local game firms.

“The FKI looks to focus on revamping its image by accepting more tech firms, particularly in the nonmanufacturing sectors,” an official from a conglomerate said. The business lobby plans to keep widening the number of its members to its previous high of more than 600 and reshape its overall image into a younger and less conservative organization. At the upcoming FKI general meeting, Ryu is also expected to be reappointed as the chairman of the business lobby.

His current term is set to end by the end of February. “There stands a high likelihood that Ryu will extend his term for another two years in recognition of his strong leadership, as evidenced by the agile organizational transformation of the FKI,” the official said..