The Federation of Korean Industries (FKI) has embarked on a mission to bolster its global network operations, which could provide a rationale for the country’s four largest conglomerates that left the FKI after 2016 to return to the business lobby.

The FKI will host the Korea Committee meeting of the OECD’s Business and Industry Advisory Committee (BIAC) between September and October, while playing a key role in the Korea-U.S. and Korea-Japan business meetings in October and November.

Samsung, Hyundai, SK, and LG, which had paid most of FKI dues, left the FKI after 2016 due to the organization’s involvement in a political scandal.

“FKI aims to further amplify its voice to ensure that the voice from Korean enterprises is considered in shaping international economic norms,” said Kim Bong-man, the FKI’s international head, emphasizing the significance of the international meetings slated for the second half. “Japan has dispatched four employees to the BIAC to convey Japan’s policy direction and gather relevant information.”

In its future endeavors, the FKI plans to actively incorporate the opinions of Korean companies in global multilateral meetings. To facilitate better communications, the FKI intends to reinforce its ties with the BIAC through the proposed BIAC South Korea Committee meeting. The committee meeting will facilitate discussions on key issues relevant to South Korean companies and their perspectives on BIAC’s agenda. The FKI also plans to augment its committee with expert members possessing specialized knowledge.

The FKI remains the sole Korean business lobby group actively participating in the BIAC, representing the interests of South Korean enterprises. Given that many international norms, including discussions on global minimum corporate tax rates and digital taxes, are centered around the OECD and have a significant impact on domestic conglomerates, the FKI’s efforts to voice its opinions through the BIAC are seen as pivotal in bolstering the grounds for the return of major business groups like Samsung to the FKI.

The BIAC serves as an advisory body consisting of industrial and employer organizations within the OECD. It provides inputs from a business perspective to the OECD Council and specialized committees and offers advice on economic policies to governments worldwide. In South Korea, Hyosung Group Vice Chairman Cho Hyun-sang is actively engaged as a BIAC director and serves as the Chairman of the BIAC South Korea Committee.

By Chung Seung-hwan and Minu Kim

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