The Federation of Korean Industries (FKI), the interest group for Korea’s largest conglomerates, canceled regular executive meeting of group heads planned for Thursday amid fears that the prosecution would expand the probe on influence-peddling by Choi Soon-sil, a suspicious friend of the president, to suspected shady deals between the incumbent president and the business community.

As many as 53 conglomerates handed over staggering 77.4 billion won ($67 million) to two foundations set up by Choi within a few days after their launch. Samsung Electronics’ headquarters in Seoul were raided by prosecutors suspecting the country’s biggest company purchased a horse and paid for training session for Choi’s daughter Chung Yoo-ra, a dressage athlete. Samsung was also the most eager donator to the two foundations.

Accountants of FKI had been questioned by the prosecution and admitted to arranging donations to the two controversial foundations Mi-R and K-Sports.

FKI Chairman Huh Chang-soo, Vice President Lee Seung-cheol, and owner-chairmen of 18 major business groups were supposed to meet this week to discuss ways to reform the organization. The meeting was called off as few are expected to turn up amidst the high-profile controversy.

“The meeting could spark public suspicion about the purpose of the assembly and decision on reform plan at such a sensitive time,” said an unnamed source from the business circles.

This week’s meeting among senior members would have shaped the direction for next year’s agenda ahead of the general assembly in February.

The FKI declined to discuss the agenda for the postponed meeting. The business community expected the corporate heavyweights to discuss outline for reorganization, response to the controversy with the two foundations, and replacement for the two top executive positions. The terms of the chair and vice chairs would end in February. Huh who has served three terms already said he won’t serve another term.

The FKI’s meeting of business chiefs was once the powerful corporate body. But it lost its old fame with dwindling turnout. Membership to the executive meeting was expanded to top 50 groups from 30, but regular attendees decreased to 20 from 21 last year.

By Jung Wook

[ⓒ Pulse by Maeil Business News Korea & mk.co.kr, All rights reserved]