An Interview with the Chairman of the Federation of Korean Industries

The 39th Korea-Japan Business Leaders’ meeting was held at the Lotte Hotel Busan on April 12-13. Your reporter accompanied the chairman of the Federation of Korean Industries (FKI), Cho Seok-rae, to an interview. Cho, who attended the meeting as the chairman of the commission of Korean business leaders, was asked the reason for reshuffling the “Big Three” positions of the FKI that was announced on April 11, and Cho answered without hesitation, “The FKI should play a central role in spreading the market economy. The recent reshuffling of senior officials was based on that idea.”

Taking office as the FKI chairman on March 20, Cho emphasized the “reform and development of the FKI.” He is also passionate about revitalizing the FKI, which has been losing influence recently, as a representative organization of the business community.

Q: The recent reshuffling attracts much attention because it was drastic and came unexpectedly.

A: “I have been thinking much about how to develop the FKI and how to better promote the market economy. The reshuffling a few days ago was also an inevitable choice for the reform and development of the organization. Completing one’s term in office is not that important for the FKI’s development.”

Q: You appointed Kim Jong-seok, professor of business administration at Hongik University, as the director of Korea Economic Research Institute, and promoted Lee Seung-cheol, the youngest executive at the FKI, from managing director to executive director.

A: “That’s because the purpose of our organization is to build a real market economy, and the two are the most well-versed Korean market economy experts.”

Q: Many are curious about whether a new standing vice chairman of the FKI will come from the bureaucracy or the private sector.

A: “Well, probably not from the bureaucracy. Our organization is looking for a capable official. Please wait a little more, since appointments are a very sensitive matter.”

For the business community, the relationship with Cheong Wa Dae and the political circles is very important, especially in a presidential election year.

Q: How do you think cooperation with Cheong Wa Dae will go?

A: “As Cheong Wa Dae and our organization have the same goal (growth of the national economy), there will be no problems in the relationship.”

Q: Do you plan to declare that your organization will not provide political funds in the run-up to the presidential election?

A: “There is a law regarding political funding. Business leaders should just observe the law. Individual members should not offer political funds according to the law, and there’s no need to make a declaration about that as an organization.”

Q: Deputy Prime Minister of Economy Kwon O-kyu recently said that he wanted “the FKI to assess universities.”

A: “He asked corporations to assess universities since corporations are customers of universities. I said that I would consider that, since I thought that makes sense. But it’s been just a few weeks since I took office. I’ve been too busy to discuss it.”

Under Cho’s leadership, the FKI is expected to change considerably. He demonstrated his enthusiasm about transforming the organization into a representative of the business community by reflecting the opinions of the board of chairmen. To that end, he plans to meet with corporate leaders as often as possible and at the regular meeting of the chairmen’s board, to solicit their opinions.

Cho is expected to appoint a senior vice chairman of the organization within a week after attending the “Meeting of 30 Persons from Korea, China and Japan” on April 15 in Tokyo.

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