Korea’s Big Four conglomerates likely to regain FKI membership

South Korea’s four largest business conglomerates – Samsung, Hyundai Motor, SK and LG – will likely return as members of the country’s top business lobby group, the Federation of Korean Industries (FKI).

SK Group has decided to notify its decision to rejoin the FKI before the business organization holds an ad-hoc general meeting on Aug. 22, industry officials said on Wednesday.

Three other conglomerates will also follow suit, sources said.

Such a possibility has been raised earlier this week after Jin Roy Ryu, chairman of Korea’s leading copper smelter and defense equipment maker Poongsan Corp., was chosen to lead the FKI as its new chairman.

Founded in 1961, the FKI has served as a leading and respected business lobby group representing Korea’s major conglomerates.

But its reputation was tainted by a series of scandals, including the corruption scandal during the ousted President Park Geun-hye’s administration in 2016. Since then, many member companies, including Korea’s big four conglomerates, have left the group.

One of Ryu’s top priorities will be to bring the four largest conglomerates back into the fold, analysts said. Currently, about 400 Korean companies are members of the group.

Write to Jae-Fu Kim and Jeong-Soo Hwang at hu@hankyung.com