The fate of the Federation of Korean Industries is inching towards disbandment as some chaebol chiefs including Samsung Electronics Vice Chairman Lee Jae-yong vowed to stop supporting the nation’s richest business club at a parliamentary hearing Tuesday.

Nine heads of Korea’s top conglomerates were called in to face lawmakers’ questions about dubious links between chaebol and Cheong Wa Dae.

The FKI, consisting of some 600 member companies, played a key role in collecting funds from top business groups including Samsung for a combined 80 billion won ($68.4 million) to two foundations controlled by President Park Geun-hye’s confidante Choi Soon-sil. Calls have since grown for the organization to dissolve.

While questioning Lee, Rep. Ha Tae-keung of the Saenuri Party demanded the heir apparent to Korea’s largest conglomerate take a leading role to disband the FKI and cut off the unhealthy relations between business and politics.

“Will you (Samsung) take the lead in disbanding the FKI? Please make a pledge not to offer donations to the FKI,” Ha said at the televised session.

Lee responded, “I’m not in a position to discuss the fate of FKI, but I will not personally engage in FKI activities,” Lee said, indicating that he would stop sending contributions to the association.

Pushed by Ha’s question whether to join Lee leaving the FKI, SK Chairman Chey Tae-won and LG Chairman Koo Bon-moo said, “Yes.”

While the FKI reportedly spends 40 billion won in operation fees per year, FKI Chairman and GS Chairman Huh Chang-soo said the top five business groups pay a combined 20 billion won membership fee each year to the business lobby group.

Ha noted that six of the nine chaebol heads present at the parliament hearing were children of former chaebol heads who were also called in for the 1988 parliamentary hearing for an investigation into the FKI’s raising funds for the Ilhae Foundation launched by former President Chun Doo-hwan.

He criticized the chaebol chiefs for becoming “collaborators for Choi Soon-sil while enjoying complacency based on cozy relations between business and politics.”

As the FKI is at the center of such relations, the FKI should disband, Ha said.

FKI Chairman Huh said the issue of disbanding the FKI was not something he could decide alone.

Hyundai Motor Chairman Chung Mong-koo said he “has an intention to leave” the FKI, while Lotte Chairman Shin Dong-bin said he is opposed to the disbandment. 

LG Chairman Koo later changed his words on favoring the FKI’s disbandment and said instead the FKI should remain a fraternal group. 

Asked by Rep. An Min-suk to raise hands if they oppose to the FKI’s disbanding, six out of the nine tycoons did so. Samsung’s Lee, SK’s Chey and CJ co-Chairman Sohn Kyoung-shik did not raise their hands.

FKI spokesperson Kim Tae-yoon said the organization’s fate will be decided by the members, declining to comment further.

By Kim Yoon-mi (yoonmi@heraldcorp.com)