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FKI chairman says Korea should 'give something' in U.S. tariff negotiations

Published: 21 Jul. 2025, 17:27 Updated: 21 Jul. 2025, 18:25

Ryu Jin, chairman of the Federation of Korean Industries (FKI), speaks during a press conference at a restaurant in Jeju on July 18 as part of the 2025 FKI Summer Forum for Business Leaders. [FEDERATION OF KOREAN INDUSTRIES]

Facing looming U.S. tariffs and deepening economic uncertainty, Federation of Korean Industries (FKI) Chairman Ryu Jin called on the Korean government to act swiftly and strategically in negotiations with Washington — even if it means making difficult concessions.

“We may need to give something [to the United States], even if it means taking a hit, for the sake of our future,” Ryu said at a news conference on Friday during the group’s annual summer forum in Jeju. Ryu also serves as the chairman of Poongsan Group.

Warning that the next two weeks could be critical, Ryu urged Korean negotiators to move decisively to secure more favorable terms before U.S. President Donald Trump imposes a planned 25 percent reciprocal tariff on Korean imports starting Aug. 1.

“We need to understand what Trump really wants and act quickly to secure better terms than others,” Ryu said. “We need to go into full-court press mode.”

In a sign of last-minute diplomacy, National Security Adviser Wi Sung-lac flew to Washington on Sunday. The Korean government is reportedly weighing a range of bargaining tools, including concessions on agricultural products like rice, apples and beef, as well as digital trade regulations.

Ryu, widely regarded as one of Korea’s best-connected business figures in the United States and a guest at Trump’s inauguration in January, also called on lawmakers to delay pending reforms to the Commercial Act, citing heightened economic risks.

“I think it might be better to slow the pace a bit for the sake of our economy,” he said.

A first round of revisions have already passed the Cabinet, expanding board member duties and tightening shareholder rules.

A second package is under review that includes mandatory cumulative voting, enhanced rules for audit committee appointments and requirements for companies to cancel treasury shares.

FKI Vice Chairman Kim Chang-beom, who joined Ryu at the news conference, also raised concerns.

“The Commercial Act serves as a kind of constitutional framework for businesses, so any changes to it have far-reaching consequences,” Kim said. “I agree with the intent behind the proposed revisions, but I’m deeply concerned because our economy is in a precarious and highly complex crisis right now.”

Ryu also hinted at hopes for the return of top conglomerate leaders — such as those from Samsung, SK, Hyundai Motor and LG — to the FKI’s board.

Lee Jae-yong, executive chairman of Samsung Electronics, arrives at Gimpo International Airport on March 28 after a trip to China. [YONHAP]

Lee Jae-yong, executive chairman of Samsung Electronics, was cleared of criminal charges by the Supreme Court last week, potentially opening the door for his full return to business leadership.

The four major groups left the FKI in December 2016, following the influence-peddling scandal involving the Park Geun-hye administration. They rejoined in 2023 but have yet to restore board-level participation.

“At one point, the FKI was on the verge of disappearing,” Ryu said. “Fortunately, the Korean public has given us another chance. We’ve created an ethics committee and welcomed new companies like Naver and Kakao.

“It would be great to see the four major groups return to the board at the general meeting in February. Lee Jae-yong has no legal burden now, so I hope the business community can move together and create the right conditions.”

Ryu also praised President Lee Jae Myung, calling him “a leader who listens.”

“We’re both from Andong, [North Gyeongsang],” Ryu said. “He listens to many voices, thinks carefully and works hard. He’s different from the leaders I’ve known before.”

Translated from the JoongAng Ilbo using generative AI and edited by Korea JoongAng Daily staff.
BY NA SANG-HYEON [[email protected]]