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President Jae-myung Lee Holds First Economic Meeting with Top Business Leaders
June 13, President Jae-myung Lee convened a meeting at the Presidential Office in Yongsan, Seoul, with the heads of Korea’s five largest conglomerates and leaders of six major business associations. Just nine days into his presidency, President Lee brought together key figures from the business community to explore ways to revitalize the Korean economy. While pledging regulatory reform and government support, he also emphasized the importance of creating a fair and balanced economic ecosystem.
During the meeting, FKI Chairman Jin Roy Ryu proposed a “Vacation in Korea” campaign to stimulate domestic consumption and expressed the business sector’s intent to expand social contribution initiatives.
FKI Business Delegation Meets Indonesian President Prabowo in First Visit Since New Government Inauguration
From April 28 to 29, FKI dispatched a high-level business delegation to Jakarta, Indonesia, led by Lotte Group Chairman Dong-bin Shin. The 24-member delegation was the first official economic mission to meet with the new administration of President Prabowo Subianto. Participants included senior executives from key Korean firms operating in Indonesia, such as Chang-beom Kim (Vice Chairman, Korea-Indonesia Economic Cooperation Committee), Sang-hyun Kim (Vice Chairman, Lotte Shopping), Jae-keun Lee (Executive, KB Financial Group), Seong Kim (President, Hyundai Motor Company), Seung-joo Kim (CEO, SK Plasma), Seong-rae Chun (Executive, POSCO Holdings), Ho-jun Song (CEO, Ecopro), Young-joo Kim (CEO, Chong Kun Dang), Heon Lee (Executive Vice President, Samsung Electronics), and Jin-soo Heo (President, SPC Group).
The delegation attended a luncheon hosted by President Prabowo at the Merdeka Presidential Palace and held meetings with key Indonesian economic ministers to present challenges and policy suggestions faced by Korean businesses operating in the country.
FKI Submits Policy Proposal to Ministry on Overcoming Petrochemical Industry Crisis
On March 21, FKI submitted an emergency proposal to the Ministry of Trade, Industry and Energy to help the petrochemical industry overcome its current crisis. This followed the government’s announcement in December 2023 of plans to strengthen the industry’s competitiveness.
With a follow-up action plan expected in the first half of 2024, FKI emphasized that its newly submitted proposal should be reflected in future government initiatives. The proposal consists of 13 measures across three key areas: reducing cost and tax burdens, improving the business environment, and supporting transitions to high value-added and low-carbon production.
FKI Launches Korea’s First Private-Sector AI Innovation Committee
Amid intensifying global competition over AI leadership, FKI became the first private-sector economic organization in Korea to launch an AI Innovation Committee comprising corporate and academic experts.
The inaugural meeting was held on March 25 at FKI Tower’s Conference Center, with Vice Chair Jae-ho Yeom of the Presidential National AI Committee in attendance. The committee discussed industry perspectives and future policy needs for Korea’s AI sector. Through this platform, FKI aims to propose forward-looking policies on AI-driven innovation, adoption, and digital governance. It also plans to work closely with the National AI Committee to support public-private collaboration.
Survey on Impact of Trump-Era Tariff Policies
FKI commissioned Mono Research to survey 150 exporting firms among Korea’s top 1,000 companies regarding the impact of tariff policies from the Trump administration. The survey revealed rising concerns among businesses about policy unpredictability and worsening global economic conditions stemming from frequent U.S. tariff changes and trade disputes. Companies expressed a strong desire for successful negotiations to minimize tariff increases and remove non-tariff barriers.
Sang-ho Lee, Head of FKI’s Economic and Industrial Division, noted, “Despite a temporary U.S.- China agreement on tariff reductions, uncertainties persist due to ongoing U.S. trade deficits, credit downgrades, and stalled negotiations. The Korean government must closely monitor U.S. tariff policy trends and devise strategies to minimize harm to domestic companies.”
Consumer ESG Behavior and Attitude Survey
FKI and Hankook Research jointly conducted a nationwide survey of 3,000 adults aged 18 and over on consumer behavior and attitudes toward ESG (Environmental, Social, and Governance). Seven out of ten respondents indicated a willingness to pay more for products from companies with strong ESG performance. Additionally, 64% reported having participated in boycotts, highlighting the growing influence of ESG factors on consumer purchasing decisions.
Commenting on the findings, FKI stated, “Despite mounting challenges such as protectionism under the Trump administration and domestic economic slowdowns, ESG management is essential for companies to achieve sustainable growth and gain consumer trust.”
Digital Sovereignty and Cybersecurity in the AI Era
On May 27, FKI co-hosted a seminar titled “Digital Sovereignty and Cybersecurity in the AI Era” at the FKI Tower Conference Center, in collaboration with the Korea Information Security Industry Association. The event featured a keynote address and discussion led by Professor Anne Neuberger of Stanford University, who previously served as Deputy National Security Advisor for Cyber and Emerging Technologies at the White House National Security Council (NSC). Professor Neuberger emphasized, “In the face of growing cyber threats, strong public-private cooperation is essential. As cyberattacks target nations indiscriminately, collaborative efforts and international alliances are key to developing effective solutions.”
FKI Promotes Korea’s Investment Achievements in the U.S.
On June 11, with roughly one month remaining before key negotiations on reciprocal tariffs under the Trump administration, FKI participated as a sponsor of the Congressional Baseball Game in Washington, D.C., highlighting the achievements of Korean companies investing in the United States. Activities included promotional videos displayed on stadium screens, distribution of investment brochures, and banners installed in outfield seating areas. FKI Chairman Jin Roy Ryu also attended the official reception for the event, engaging directly with influential U.S. lawmakers and opinion leaders in a proactive “Korea sales” effort.
*The Congressional Baseball Game is an annual bipartisan charity event held since 1909, featuring U.S. Senators and Representatives as players or team managers.
FKI Proposes U.S.-Korea Shipbuilding Cooperation Strategy
FKI released a report titled “Analysis of the U.S. Shipbuilding Industry and Implications for Korea-U.S. Cooperation,” authored by Professor Min-cheol Ryu of Korea Maritime & Ocean University. The report noted that the U.S. is pursuing a shipbuilding industry revival through executive orders that encourage collaboration with allies. It projected that between 403 and 448 new ships could be ordered by 2037 under this policy direction.
Key recommendations include: aligning Korea’s shipbuilding strategy with U.S. ship procurement plans by vessel type, easing restrictions on the export of shipbuilding technology, nurturing domestic shipbuilding talent, and enhancing competitiveness in next-generation vessels.
Sang-ho Lee, Executive Director of FKI’s Economic and Industrial Affairs Division, stated, “With the U.S. investing in shipbuilding reconstruction, Korea’s global competitiveness in the sector becomes even more critical. Korea’s government and legislature should actively support smart shipyards and future vessel technologies such as autonomous and hydrogen-powered ships.”
Spend Your Summer Holiday in Korea! FKI Encourages Members to Join the K-Vacance Campaign
As sluggish domestic demand continues to strain local economies and small businesses, the Federation of Korean Industries (FKI) is urging its member companies to support domestic travel as part of its summer holiday campaign. This initiative follows a pledge made by FKI Chairman Jin Roy Ryu during a meeting with the President and leaders of Korea’s six major business organizations on June 13. At the meeting, Chairman Ryu emphasized the need to revive domestic consumption by launching a “Spend Your Summer Holiday in Korea” campaign. In an official letter, FKI proposed several action items to member companies: encouraging employees to take paid leave and travel within Korea during their vacations, promoting workation* programs that combine work and vacation at domestic destinations, holding workshops and group events at local tourist spots, and shifting reward-based overseas training programs to domestic locations.
*A hybrid working arrangement that allows employees to work remotely while enjoying leisure time in a location of their choice.
FKI Entrepreneurship Power House Hosts AIdentity Design Contest
The FKI Entrepreneurship Power House held the AIdentity Design Contest from April 24 to May 18. Centered on building a strong brand identity for the Entrepreneurship Power House, the competition accepted entries in two categories: visual brand identity (BI) design and creative merchandise design.
Director Chul Chung remarked, “Entrepreneurship is a core growth engine for revitalizing Korea’s economy and represents the ability to spot opportunity and drive change in everyday life. Our platform aims to become an open space for visionary individuals shaping the future.”
FKI plans to actively incorporate the winning BI and merchandise designs into its entrepreneurship programs and promotional content, reinforcing entrepreneurship as a cultural value across Korean society.
