[비즈한국] The recent appointment of Kim Do-kyun as the new CEO of Kangwon Land has sparked criticism from some corners regarding "parachute appointments." This is because Kim lacks corporate management experience and, as a member of the Democratic Party of Korea, has run for a general election and served as a regional party committee chairman and the Gangwon provincial party chairman until recently. Critics point out that he is a political figure lacking expertise in casino and resort management. Regardless of which administration is in power, Kangwon Land CEOs have never been free from parachute controversies. It appears that similar controversies are repeating themselves under the Lee Jae-myung government.
Kangwon Land announced that new CEO Kim Do-kyun held his inauguration ceremony at the High1 Grand Hotel Grand Ballroom last September and has officially begun his duties. During the ceremony, Kim stated, "Kangwon Land is a crystallization of mutual growth built upon the desperate aspirations and sacrifices of the local residents, and a key anchor company supporting the local economy." He added, "At this threshold of a major transformation marking our 30th anniversary, I will turn crises into opportunities and create a definitive turning point to upgrade the future of Kangwon Land and the coal industry transition regions to the next level."
Born in 1965, CEO Kim Do-kyun served as a career soldier after graduating from the Korea Military Academy. After concluding his military service as the Commander of the Capital Defense Command in 2022, he joined the Democratic Party of Korea in 2023 and embarked on a political career. He ran for the Sokcho-Inje-Goseong-Yangyang constituency in the 22nd National Assembly election in 2024 but was defeated by People Power Party lawmaker Lee Yang-soo. Following his election loss, he continued his political path by serving as the Democratic Party's regional committee chairman for Sokcho-Inje-Goseong-Yangyang and as the chairman of the Gangwon State provincial party.
Concerns about his professional expertise have been raised following CEO Kim Do-kyun's inauguration. Criticism regarding a "parachute appointment" also stems from the fact that he has been active in the ruling Democratic Party. While Kim has ties to Gangwon State, his background is limited to military and political activities, and he has never worked for a general corporation. This is why he is being criticized for failing to demonstrate the competence or expertise required to lead a company with over 1 trillion won in annual revenue, such as Kangwon Land.
Explaining the reason for nominating Kim, the Kangwon Land board of directors stated, "Based on his experience in managing and operating large-scale organizations as a high-ranking official, he is capable of diagnosing organizational realities and driving management innovation. With his high understanding of the political and economic environment of the Gangwon region, he possesses the capability to foster the tourism industry and smoothly navigate the legal and institutional regulations facing Kangwon Land." They added, "His proven communication and mediation skills, honed while acting as the final person responsible for coordinating foreign and security policy agendas, will harmonize cooperation with various internal and external stakeholders of the institution." However, questions remain as to whether his military management experience can substitute for expertise in managing a casino and resort business.
The parachute controversy also extends to Yoo Jeong-bae, who was appointed as Kangwon Land’s Vice President around the same time as CEO Kim. Yoo also attempted to run for the Chuncheon-Cheorwon-Hwacheon-Yanggu-eul constituency for the Democratic Party during the 22nd general election. After failing in the party primary, he served as the Democratic Party’s regional committee chairman for the same district. However, Yoo differs from CEO Kim in that he has experience managing public enterprises, having served as the head of the Gangwon Social Economy Support Center and the president of the Korea Coal Corporation.
The Justice Party’s Gangwon State provincial branch criticized the appointments in a statement: "Are the positions of Kangwon Land president and vice president meant for properly managing a public enterprise, or are they positions for career management for politicians preparing for the next general election?" They added, "We strongly urge the government and the Democratic Party to take immediate, responsible measures to ensure that the independence and political neutrality of Kangwon Land are not undermined."
The Economic Reform Solidarity also noted, "(At Kangwon Land,) it is effectively difficult to appoint a candidate without coordination with the government, but this cannot serve as a justification for parachute appointments." They pointed out, "At this critical juncture, where there has been a long-term vacancy in the CEO position and major projects that will determine the next 100 years of the abandoned mine regions are being pursued, one cannot help but worry whether CEO Kim Do-kyun, who is difficult to view as having expertise in corporate management, can properly fulfill his role."
The Kangwon Land labor union, which had shown active opposition at the time of CEO Kim's nomination, later indicated a willingness to cooperate. Union leader Im Woo-hyuk said at the inauguration ceremony, "Through a joint labor-management declaration, we will achieve sustainable growth based on a mature culture of labor-management cooperation."
Kangwon Land’s parachute controversy is not a recent development. Ham Seung-hee, who served as CEO from 2014 to 2017 during the Park Geun-hye administration, ran for the general election as a member of the Pro-Park Coalition in 2008. His successor during the Moon Jae-in administration, Moon Tae-gon, was a former official of the Presidential Office for Civil Service Discipline under the Roh Moo-hyun administration. The subsequent CEO, Lee Sam-geol, also had a history of running for a general election as a member of the Democratic Party, and Vice President Sim Gyu-ho, who was appointed around the same time, was a former aide to former Democratic Party lawmaker Lee Kwang-jae. After Lee Sam-geol resigned in 2023, the CEO position at Kangwon Land remained vacant until recently.
The appointment of a Kangwon Land CEO involves a process of nomination by the Executive Recommendation Committee, deliberation and resolution by the Public Agency Management Committee, a shareholder meeting vote, a proposal by the Minister of Trade, Industry and Energy, and finally, appointment by the President. If the President or the Minister of Trade, Industry and Energy opposes it, the appointment cannot proceed. For this reason, some point out that the appointment structure must be improved, if only to prevent parachute appointments. Kangwon Land has not issued an official statement regarding the parachute controversy.