The World Economic Forum (WEF), widely known as the 'Davos Forum,' is currently mired in various allegations following the resignation of its founder Klaus Schwab, leading to intensified internal conflicts. This has raised concerns about the future viability of the WEF.
On the 15th (local time), the British Financial Times reported that an additional internal whistleblower email was disclosed about two weeks after Schwab indicated his intention to resign in April, prompting the WEF to initiate an official internal investigation. The investigation is being overseen by the Swiss law firm Homburger, and the WEF stated it would not make further comments until the investigation concluded.
The concerning whistleblower email raised over 10 allegations, including exclusive book royalties and misuse of business expenses, with a significant number revealed to be financial in nature. According to the Financial Times, Schwab has been accused of monopolizing royalties on certain publications supported by the WEF for research and editing, and there are claims that his wife misappropriated part of the WEF building.
Previously, in 2018, the WEF purchased a luxury dwelling adjacent to its headquarters known as 'Villa Mundi' for about $20 million (approximately 27.9 billion won), with Schwab's wife allegedly managing and using it exclusively.
Additionally, there were testimonies alleging that Schwab made derogatory remarks about female employees and criticisms that the handling of sexual harassment issues involving his son, Olivier Schwab, was inadequate, along with claims that Schwab mobilized WEF staff to be nominated for the Nobel Peace Prize.
Schwab denies all allegations. He stated, 'My wife and I have dedicated decades to the WEF without compensation. I have consistently donated personal assets,' and claimed, 'I did not receive the bonus and salary increase amounting to 5 million Swiss francs (approximately 8.3 billion won) agreed upon by the past board.' He also explained that business-related expenses were 'later covered by personal funds.'
However, the controversy shows no signs of settling down. The WEF already faced turmoil last year due to internal cultural issues such as sexual harassment and racism among executives, at which time questions were raised about Schwab's accountability. Ultimately, he announced his resignation on the 2nd of last month, and the WEF planned to complete the term until January 2027 before transitioning to a successor, but internal investigation was initiated due to additional allegations.
Some evaluate that this situation is a natural consequence stemming from the excessively close relationship between the WEF and Schwab. The Financial Times, citing several current and former WEF officials, reported, 'Schwab viewed himself as inseparable from the forum,' and noted, 'It would have been virtually impossible for him to step down.' Indeed, there have been long-standing concerns regarding unilateral decision-making and concentration of power within the WEF.
Interest is also focused on the future operations of the WEF following Schwab's departure. This is because the Swiss government has stipulated that at least one member of the Schwab family must be included on the board as part of granting international organizational status to the WEF. Currently, Borge Brende, former Norwegian Foreign Minister, serves as the temporary chairman, while Peter Brabeck, former chair of Nestlé, temporarily holds the position of board chairman.
Among the candidates for the next leadership are David Rubenstein, co-founder of The Carlyle Group, and Christine Lagarde, President of the European Central Bank (ECB).
However, there are opinions that the forum's very survival has been jeopardized by the founder's downfall. The WEF maintains that its mission and values of 'improving the international community through solving global challenges' remain unchanged; however, internal unrest persists. One senior executive noted, 'Partner corporations of the WEF are applying brakes on their future moves due to this situation,' and stated, 'It cannot be promised that they will continue to be with the WEF going forward.'
Meanwhile, the WEF is an organization founded by Schwab in 1971 that annually hosts a conference in Davos, Switzerland, where political and economic leaders from around the world gather. It has served as a platform for discussions on various global issues such as the world economy, climate change, technological innovation, and geopolitical risks, and was recognized as an international organization in 2015. Currently, about 1,000 global corporations are participating as regular members.