[비즈한국] Within the camp of Lee Jae-myung, the Democratic Party’s presidential candidate, proposals have been raised to relocate the headquarters of the Korea Racing Authority (KRA) and the Korea Airports Corporation (KAC) to Jeju Special Self-Governing Province. There is opposition within both the KRA and the KAC regarding such a move. Some also analyze that relocating the headquarters would have minimal effect on balanced regional development.
Former Democratic Party lawmaker Kim Doo-kwan held a meeting with Jeju Governor Oh Young-hun on May 15. During the meeting, Kim announced that he would propose relocating the Korea Racing Authority and the Korea Airports Corporation to Jeju. Kim currently serves as the chairman of the Decentralization Innovation Committee directly under candidate Lee Jae-myung.
This statement by former lawmaker Kim appears to be made with balanced regional development in mind. In a similar vein, candidate Lee Jae-myung pledged to relocate HMM011200 to Busan, while candidate Kim Moon-soo pledged to relocate the Korea Development Bank (KDB) to Busan.
Former President Yoon Suk-yeol also pushed to relocate the KDB headquarters to Busan during his term. However, the move was effectively thwarted due to opposition from the National Assembly, as the current Korea Development Bank Act stipulates that "the headquarters of the Korea Development Bank shall be located in Seoul."
The Korea Racing Authority is headquartered in Gwacheon, while the Korea Airports Corporation is in Seoul (Gimpo Airport). For these two entities, the relevant laws state that "the location of the principal office shall be determined by the articles of incorporation." If the boards of directors of the KRA and KAC decide to move their headquarters, they can do so without parliamentary consent, unlike the Korea Development Bank.
The issue is whether the Korea Racing Authority and Korea Airports Corporation will cooperate with candidate Lee Jae-myung’s policy. Lee is currently leading in various opinion polls, suggesting a high probability of his election. However, most board members at both the KRA and KAC were appointed during the Yoon Suk-yeol administration, providing no guarantee of cooperation with Lee’s pledges.
The term of KRA Chairman Chung Ki-hwan expired in February of this year. However, as the selection process for his successor has been delayed, he continues to hold the position. The KRA is currently undergoing the process of selecting a new chairman. There are rumors that a figure associated with the People Power Party is the leading candidate. The chairman’s term is three years; if a figure aligned with the People Power Party takes office as rumored, a smooth relationship with candidate Lee Jae-myung would be difficult to expect.
The Korea Racing Authority labor union criticized this in April, stating, "We need an institutional head who fits the national philosophy and policy direction of a new era and a new government," adding, "If a chairman is appointed now, anyone would end up in a state of communication breakdown with the new government."
The position of CEO at the Korea Airports Corporation is also currently vacant. The KAC had nominated former Vice Minister of Land, Infrastructure and Transport Kim O-jin as the new CEO in June of last year. However, after controversy arose regarding his expertise, the appointment was ultimately abandoned. Since then, the selection process for a new CEO has been effectively halted.
However, if the process for appointing a new KAC CEO begins after the inauguration of a new government, it is expected that there will be no "cram-down appointment controversy," unlike with the Korea Racing Authority. If candidate Lee Jae-myung is elected president and a new KAC CEO is subsequently appointed, there is a high possibility that the corporation will follow Lee's policies.
Meanwhile, North Jeolla Province is also attempting to host the Korea Racing Authority headquarters. In March 2023, North Jeolla Governor Kim Kwan-young and local lawmakers issued a statement arguing, "North Jeolla Province possesses a government-designated Horse Industry Special Zone but is the only region without a racetrack," and asserted, "Relocating the KRA, which has been encouraged to move by the Ministry of Land, Infrastructure and Transport due to residential complaints, to North Jeolla Province would be a win-win solution for the central government and the province." Recently, Sunchang-gun and Gimje-si have each unveiled plans to attract the KRA headquarters.
However, forcing the relocation of the KRA and KAC headquarters would require enduring backlash from internal staff. When former President Yoon Suk-yeol pushed for the relocation of the KDB headquarters, the KDB labor union responded with intense opposition, and a significant number of employees even resigned.
An official from the Korea Racing Authority labor union criticized the move, saying, "We fundamentally oppose the relocation of the headquarters. The location of the KRA headquarters in the metropolitan area must be viewed as being for the accessibility of residents; if this is abandoned and moved to the provinces, the horse racing business itself could face a major crisis. Currently, racetracks are in Gwacheon, Busan, and Jeju; if the Gwacheon racetrack is left as is and only the headquarters moves to Jeju, the number of relocating personnel would be minimal, and there would be no significant effect." A Korea Airports Corporation employee argued, "With airports located across the country and administrative staff already stationed at each, there would be no major ripple effect even if some headquarters staff moved to Jeju."
Chairman Kim Doo-kwan's remarks were not made in consultation with the Korea Racing Authority or the Korea Airports Corporation. As a result, there is criticism that pledges are being made excessively without thorough review. A KRA official stated, "There is no concrete plan for the headquarters relocation," adding, "I am not well-informed about the details." A KAC official stated, "There is currently no specific plan for moving the headquarters."