Industry Group Chair Up for Grabs

Ahead of the chairman of the Federation of Korean Industries Kang Shin-ho’s term of office expiring at the end of January next year, the job of deciding the new chairman will be in full swing starting from next month. There is much being said in financial circles about the new FKI chairman.

But unlike last time when selecting the chairman, there is almost no one voicing that, “One of the ‘Big 3 businessmen,’ Chairman Lee Kun-hee of Samsung, Chung Mong-koo of Hyundai Kia Motors or Koo Bon-moo of LG Group, must take the place of chairman and reconstruct the lost reputation of the FKI.” It is certain that Chairmen Lee Kun-hee and Koo Bon-moo will strongly decline the offer and Chairman Chung Mong-koo, who once showed interest in the seat of FKI chairman, is caught in the middle of a trial, making it difficult for him to get involved.

Therefore, the head of companies that are mainly discussed as candidates for the next chairman are Hyosung Group Chairman Cho Seok-rae (Age 71), Hanwha Group Chairman Kim Seung-youn (Age 54), and Kumho Asiana Chairman Park Sam-koo (Age 61).

At the moment, Hyosung Group Chairman Cho Seok-rae is known to have the highest chance of being seated as the new chairman. This is because he is one of the relative elders among financial business leaders and has formed close relations with other heads of groups for a long period of time. The fact that Hyosung Group is free of raising slush funds or providing political funds is also considered to be an advantage.

Hanwha Group Chairman Kim Seung-youn has only recently arisen as a candidate for chairman. He attended the board of directors meeting in September for the first time in three years and told reporters that he wants, “To try at being the chairman of the FKI labor union,” and in November proposed a golf event sponsored by Hanwha for the FKI board of directors. But a person from the financial circle said, “(Chairman Kim) was involved in providing slush funds for the last presidential elections and criticism over the process of taking over Korea Life Insurance has not yet subsided so it does not look easy.”

Kumho Asiana Chairman Park Sam-koo is being considered as a candidate by self-recommendation as well being recommended by others, but he is known to be burdened with several problems under consideration by the group, such as those related with taking over Daewoo Construction.

Other candidates being considered are Hanjin Group Chairman Cho Yang-ho (Age 57) and Dongyang Group Chairman Hyun Jae-hyun (Age 57).

Chairman Kang Shin-ho showed interest in remaining in office up till the beginning of this year, but is known to have given up on the idea after the ‘old-age divorce’ upheaval.

An official of a financial group said, “The FKI Chairman position must receive silent approval from Cheong Wa Dae and because it is yet unclear in which direction political power will move after the presidential elections next year, this is yet another factor that is making it difficult for key businessmen to step forward for the chairman position.”

sunshade@donga.com