[Anchor]
The government has also announced a massive reform plan to cut about 20% of public institutions. Five state-run power generation companies and four port authorities will be merged into single entities, while the Korea Land and Housing Corporation (LH) will be split into two. Labor circles are pushing back, criticizing the reorganization as a backroom overhaul carried out without sufficient consultation.
Reporter Baegun has the details.
[Reporter]
The government announced that the five power generation companies, which were split off from the Korea Electric Power Corporation (KEPCO) in 2001, will be integrated into a tentative entity named Korea Power Generation 25 years later.
Privatization, the original goal of the split, fell through long ago, and the government concluded that overlapping investments in research and development and renewable energy projects have instead caused inefficiency.
[Heo Jang / Vice Minister of Economy and Finance: We will integrate the five power generation companies into one to drive a major energy transition centered on renewable energy.]
The four port authorities scattered across Busan, Incheon, Ulsan, and Yeosu-Gwangyang, which perform identical functions, will also be merged into a tentative Korea Port Authority, while the Korea National Oil Corporation and the Korea Gas Corporation will be integrated into a tentative Energy Resource Corporation.
The plan aims to boost supply chain crisis response capabilities and external negotiating power by scaling up their size.
LH will be split into two separate organizations.
The Korea Housing and Urban Development Corporation will take charge of land development and housing construction, while the Korea Housing and Urban Asset Corporation will handle housing welfare, including rental housing operations.
The government explained that having development sectors—where speed and financial performance are critical—coexist with housing welfare functions—where public service is emphasized—has delayed housing supply and increased the burden of operating rental housing.
A total of 109 institutions will be downsized through this public sector reform.
Labor circles criticized that the reorganization is being pushed forward without sufficient review and public debate, excluding workers and users.
[Kang Seong-gyu / Vice President of the Korean Public Service and Transport Workers' Union: They are making plans behind closed doors, passing them through rubber stamps, and presenting them as government reforms. They must admit that this was done without adequate labor-government consultations and social discussions.]
The government stated that it will guarantee job succession for employees and ensure their compensation does not decrease. However, since some integrations and mergers require revisions to related laws and labor-government negotiations remain, considerable friction is expected.
(Video by Cho Choon-dong, Kim Heung-ki | Video Editing by Kim Jong-mi | Design by Hwang Se-yeon)
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