Business group fails to select a chairman, exposing a division

Lee Joon-yong, left, said he was too old to chair Korea’s largest business lobbying group, which was seen as a vote against Cho Suck-rai, right. [YONHAP]

Attempts to select the chairman of Korea’s largest business lobby group failed for the first time in 46 years, when a suggestion was made that the likely candidate was too old. The lack of consensus shines a light on a conflict between traditionalists and reformers in the organization.
The Federation of Korean Industries held a general assembly yesterday at its headquarters in Yeouido, Seoul. The early part of the meeting was fairly routine, as a screening committee was formed to select the chairman of the federation.
When it came to discussing the candidates, however, Lee Joon-yong, chairman of Daelim Group, suddenly raised his hand.
“I was asked to be the chairman but I have no intention of doing so. What can a man do at the age of 70?”
Although Mr. Lee, now 69, seemed to be speaking on his own behalf, many participants felt he was personally opposing the appointment of Hyosung Group Chairman Cho Suck-rai, 72, who had been designated for the position and was just waiting for the voting formalities.
“Chairman Cho was the most likely candidate and he said himself that he would take the position if he were appointed,” Cho Kun-ho, vice chairman of the federation, later said after the assembly was adjourned.
After Mr. Lee’s comments, the assembly room suddenly became silent.
Then Kim Joon-sung, the head of the screening committee, finally said, “We have always designated the chairman after fully compiling the opinions of [the corporate group] chairmen, but this time, such opinions were not properly gathered.”
Mr. Kim announced that the federation would postpone the election of its chairman.
As of late, there have been many conflicting opinions among the heads of the corporate groups about the status of the federation, as well as what role it should take.
Early this month, Kim Jun-ki, chairman of the Dongbu Group, withdrew from the federation to oppose plans ― later changed ― to appoint the current chairman, Kang Shin-ho, to serve a third term.
The Dongbu chairman was among those who pushed for the federation to reform with a younger chairman.
The reformists say the federation is too weak because it cooperates too easily with the government and that it needs to take a stronger role.
However, none of the younger corporate group chairmen have expressed an interest in leading the group.

By Kwon Hyuk-joo JoongAng Ilbo [wohn@joongang.co.kr]