The Federation of Korean Industries, the main business lobby in the country, which would have been expected to lead business circles in setting up a new relationship with government officials and politicians, now finds it difficult to assume the role.

The organization has been under mounting public criticism for playing a conduit role in funneling huge sums from large corporations to two cultural foundations controlled by former President Park’s close confidante, Choi Soon-sil.

The country’s four largest conglomerates -- Samsung, Hyundai Motor, LG and SK -- quit the FKI after being subjected to investigations in connection to their donations.

The federation last month announced a set of self-reform measures aimed at cutting its murky connection with political circles and strengthening its function as a think tank for the corporate sector and society as a whole.

In a gesture to show its resolve, the business lobby changed its official Korean name, though its English title remains unaltered.

“We will go back to basics and meet the expectations placed on us,” said FKI Chairman Huh Chang-soo in a press conference, adding the organization would make a 40 percent reduction in its budget and workforce.

But the FKI, which has been regarded as representing the interests of big companies, has vowed to continue to carry out a major role in promoting economic cooperation with foreign countries on a private level.

Eom Chi-sung, an FKI official in charge of international affairs, noted economic exchanges and networking in the private sector are “important now more than ever” amid growing uncertainties in the global business environment.

Filling the void left by the FKI is the Korea Chamber of Commerce and Industry, which has some 160,000 members and encompasses a broader range of companies.

KCCI President Park Yong-man made a round of visits to the five political parties last month to convey proposals he hoped would be taken into account in drawing up their presidential campaign pledges.

Park described the suggestions not as a mere wish list of the corporate sector but as key agenda that needed to be discussed between political and business circles to build a fair society, promote the market economy and secure future prosperity.

Observers saw his move as a meaningful attempt at resetting the relationship between business and politics.

The KCCI is also planning to invite presidential candidates to give a lecture to and hold a debate with its members in the run-up to the May 9 election.

There have been concerns the two main business bodies may often be at odds down the road.

In February, the KCCI rejected a proposal from the FKI and three other business associations to take a joint stance against commercial code revision bills pushed by lawmakers.

The KCCI and FKI are expected to vie for a leading role in economic diplomacy on the private level.

A corporate executive, who requested anonymity, said it would be necessary for all business associations, including the two main entities, to make a joint response to anti-business measures by political parties.

“In the future, it may become a little bit more difficult for business circles to raise their voices in unison,” he said.

By Kim Kyung-ho (khkim@heraldcorp.com)