[비즈한국] The political atmosphere surrounding the Korea Economic Association (KEA; formerly the Federation of Korean Industries, or FKI) is showing signs of instability. Because the KEA was the only major business association not invited to an economic meeting hosted by the Democratic Party of Korea (DPK), concerns are rising in the business community that "FKI passing"—a term referring to the deliberate exclusion of the organization—may be reigniting.
The Democratic Party's Stock Market Revitalization Task Force (TF) held meetings with various economic organizations last November to discuss proposed amendments to the Commercial Act. Major economic bodies, including the Korea Chamber of Commerce and Industry (KCCI), the Korea Enterprises Federation (KEF), the Korea International Trade Association (KITA), and the Korea Federation of SMEs, were in attendance. However, no representative from the KEA was present.
National Assembly Speaker Woo Won-shik also held an economic meeting last December. While KCCI Chairman Chey Tae-won and KEF Chairman Sohn Kyung-shik attended, no KEA officials were to be found. This has led to analyses that the Democratic Party is intentionally excluding the KEA. A KEA official also stated, "To my knowledge, we did not receive any notice (to attend the meeting) from the Democratic Party."
Some observers believe the conflict stems from the KEA’s opposition to the proposed Commercial Act amendments. The core of the bill involves expanding the fiduciary duty of directors from the "company" to include "the company and its shareholders," a move intended to strengthen shareholder rights. The Democratic Party is leading the push for these amendments.
In November of last year, the KEA released an "Emergency Statement by Major Corporate Leaders for a Resurgence of the Korean Economy" alongside 16 CEOs of top domestic companies. In the statement, the leaders argued, "We urge you to focus more on legislation and budgets for economic recovery rather than the various regulatory bills currently under discussion, such as the Commercial Act amendments," adding, "Since the proposed amendments could cause significant disruption to overall corporate management, an alternative approach, such as amending the Capital Markets Act, would be more desirable."
However, the KEA is not alone in its opposition; the KCCI and KEF share similar concerns. Nevertheless, analysts suggest the KEA has become a primary target because of its association with figures leaning toward the conservative "People Power Party." Currently, the KEA advisor is Kim Byong-joon, the former chairman of the Liberty Korea Party's Emergency Response Committee.
The presence of Advisor Kim Byong-joon impacts not only the political sphere but also the KEA's member companies. Last August, when asked about the payment of KEA membership fees, Lee Chan-hee, chairman of the Samsung Compliance Committee, responded, "I am fundamentally skeptical about whether (the KEA) has achieved the personnel reforms necessary to completely sever the ties of collusion between politics and business." This was interpreted as a remark directed at Advisor Kim. Although Samsung Group eventually approved the membership fee payment, it is said that many large corporations remain wary of being caught up in political-business scandals. Notably, Advisor Kim has already announced his intention to resign in February 2025.
The Democratic Party has, in fact, been hostile toward the KEA for a long time. In 2023, when the FKI relaunched as the KEA, then-Democratic Party spokesperson Han Min-soo criticized the move, saying, "Do not mistake changing the signboard for an ability to erase the ugly past of the FKI from the public's memory. This behavior of leaving the substance intact while only changing the packaging to deceive the public shows that the KEA has not reflected on itself in the slightest."
The KEA faced heavy criticism from the Democratic Party in the past due to its involvement in the Choi Soon-sil scandal. The Moon Jae-in administration even excluded the KEA from major government events, leading to the coinage of the term "FKI passing." A business industry source analyzed, "If the Democratic Party, which has held a critical stance toward the KEA in the past, were to become friendly now, it could create a problem with their political narrative. Since many citizens still remember the Choi Soon-sil scandal, they cannot easily reach out to the KEA."
With the passage of the impeachment motion against President Yoon Suk-yeol in the National Assembly, the likelihood of an early presidential election has increased. Currently, Democratic Party leader Lee Jae-myung leads in various opinion polls for the next presidency. There is a sense of apprehension in the business community that if the Democratic Party takes power, the KEA’s position could shrink even further. In such a case, domestic conglomerates would have no choice but to rely on the KCCI and KEF rather than the KEA as their channels for communication with the government.
Conversely, some hold the view that things would be different from the Moon Jae-in administration. This is because the KEA’s current standing has risen to a level that cannot be ignored compared to that period. During the Moon administration, the four major groups—Samsung034730, SK, Hyundai Motor005380, and LG003550—had withdrawn from the organization, but all four have since rejoined. The KEA is also actively expanding its reach by inviting companies like HYBE352820 and Naver to join.
The organization is also striving to increase its visibility. Last December, the KEA sent an official request for cooperation to its member companies to help boost domestic demand. The requested measures included: proceeding with year-end and New Year events and gatherings as planned; encouraging employees to use remaining annual leave; purchasing supplies and consumables in advance; signing event contracts early and prepaying deposits; and making early payments to partner companies for supplies.
The actions of KEA Chairman Ryu Jin are also noteworthy. The business community hopes that Chairman Ryu will serve as a bridge to U.S. President-elect Donald Trump. It is reported that Chairman Ryu has been invited to President-elect Trump’s inauguration and is currently coordinating his attendance. In his 2025 New Year's address, Chairman Ryu stated, "I will do my utmost to reduce risks and expand opportunities by actively communicating with personnel from the new U.S. administration." However, a KEA official did not provide a specific stance regarding the future relationship with the Democratic Party.