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비즈한국 비즈한국

Organization in the Provinces, Head in the Capital Region
② Headquarters in the Provinces, Head in the Capital: Quasi-Market Public Enterprises Are No Exception

This article was automatically translated by AI. There may be errors compared to the original Korean article.  Read original in Korean →
The government plans to announce its second phase of public institution relocations within this year. Key reasons cited for these relocations include balanced regional development and the easing of overpopulation in the capital region. The logic is that if public institutions move outside the capital area, their employees will settle and live there, which would also help curb rising real estate prices in the capital region to some extent. However, it has been confirmed that the heads of many of these public institutions located outside the capital region still maintain their registered addresses in the capital. In effect, the very leaders representing these institutions are refusing to leave the capital area.

[비즈한국] There are currently 16 quasi-market public enterprises in Korea. Among public enterprises, those with self-generated revenue ratios between 50% and 85% are classified as quasi-market public enterprises. Of these, four are headquartered in the capital region: Grand Korea Leisure (GKL), Korea Racing Authority (KRA), Korea Marine Environment Management Corporation (KOEM), and SR. The remaining 12 are headquartered outside the capital region.

Kim Yoon-duk, Minister of Land, Infrastructure and Transport, explains the achievements of the past year at the press room of the Sejong Government Complex in Sejong Special Self-Governing City on August 14. Regarding the second phase of public institution relocations, Minister Kim stated, "The President’s first instruction was to challenge the goal of leaving 'zero' functions in Seoul." Photo = Yonhap News

Among the quasi-market public enterprises located outside the capital region, four heads reside in the capital area: Lee Hun-ook, President of the Korea Real Estate Board; Yoon Seok-dae, President of K-water (Korea Water Resources Corporation); Sung Chang-hoon, President of Korea Minting, Security Printing & ID Card Operating Corp. (KOMSCO); and Park Sang-hyung, President of KEPCO KDN. President Lee Hun-ook and President Sung Chang-hoon reside in Gyeonggi-do, while President Yoon Seok-dae and President Park Sang-hyung live in Seoul. The headquarters of the Korea Real Estate Board is in Daegu, while those of K-water and KOMSCO are in Daejeon. KEPCO KDN is headquartered in Naju, Jeollanam-do (Gwangju-Jeonnam Innovation City).

It has been confirmed that other heads of quasi-market public enterprises located outside the capital region reside reasonably close to their headquarters. The Korea Gas Technology Corporation (KOGAS-Tech) is headquartered in Daejeon, and its president, Lim Jong-seok, lives in Cheonan, Chungcheongnam-do. Additionally, the Korea Mine Reclamation Corporation (MIRECO) is headquartered in Wonju, Gangwon-do, and its president, Hwang Young-sik, lives in Yeongwol-gun, Gangwon-do.

Residential Status of CEOs (Heads) of Quasi-Market Public Enterprises
Company NameHeadquarters LocationCEO (Head)CEO AddressOfficial Residence Provided
Grand Korea LeisureGangnam-gu, SeoulYoon Doo-hyunGyeongsan-si, GyeongbukNo
Jeju Free International City Development CenterJeju-si, JejuSong Seok-eonJeju-si, JejuYes
Korea Housing Finance CorporationNam-gu, BusanChoi In-hoSaha-gu, BusanNo
Korea Gas Technology CorporationYuseong-gu, DaejeonLim Jong-seokCheonan-si, ChungnamYes
Korea Mine Reclamation CorporationWonju-si, GangwonHwang Young-sikYeongwol-gun, GangwonYes
Korea Racing AuthorityGwacheon-si, GyeonggiWoo Hee-jongGwanak-gu, SeoulNo
Korea Real Estate BoardDong-gu, DaeguLee Hun-ookYongin-si, GyeonggiYes
K-waterDaedeok-gu, DaejeonYoon Seok-daeSeocho-gu, SeoulYes
KEPCO E&CGimcheon-si, GyeongbukKim Tae-kyunGimcheon-si, GyeongbukYes
KOMSCOYuseong-gu, DaejeonSung Chang-hoonAnyang-si, GyeonggiYes
Korea Railroad Corporation (KORAIL)Dong-gu, DaejeonKim Tae-seungGochang-gun, JeonbukYes
Korea Land and Housing Corporation (LH)Jinju-si, GyeongnamLee Seong-hunJinju-si, GyeongnamYes
KEPCO KDNNaju-si, Gwangju-JeonnamPark Sang-hyungDobong-gu, SeoulYes
KEPCO KPSNaju-si, Gwangju-JeonnamKim Hong-yeonNaju-si, Gwangju-JeonnamYes
Korea Marine Environment Management CorporationSongpa-gu, SeoulKang Yong-seokSeocho-gu, SeoulNo
SRGangnam-gu, SeoulJung Wang-gukSeo-gu, DaejeonYes

There are also reverse cases where the headquarters are in the capital region, but the head of the organization resides outside of it. Yoon Doo-hyun, CEO of Grand Korea Leisure, lives in Gyeongsan-si, Gyeongsangbuk-do, while his company is headquartered in Gangnam-gu, Seoul. Similarly, Jung Wang-guk, CEO of SR, lives in Seo-gu, Daejeon, while SR is headquartered in Gangnam-gu, Seoul.

CEO Yoon Doo-hyun is a former politician who was elected in the Gyeongsan-si district during the 21st general election. Analysis suggests that because his political base is in Gyeongsan-si, he maintains his registered address there. Unlike other public enterprises outside the capital region, Grand Korea Leisure does not provide an official residence for its CEO. However, it is known that CEO Yoon also owns an apartment in Mok-dong, Yangcheon-gu, Seoul. If his actual base of life is Mok-dong, he may have no difficulty performing his duties as CEO. Nonetheless, the fact remains that his registered address is in Gyeongsan-si. Under current Resident Registration Law, one's actual place of residence must match their registered address.

CEO Jung Wang-guk is a long-time employee of the Korea Railroad Corporation (KORAIL) and has no significant ties to politics. Since KORAIL’s headquarters are in Daejeon, his residence there is not entirely incomprehensible. Furthermore, SR is scheduled to be merged into KORAIL this coming September. CEO Jung took office in February of this year, whereas the merger between KORAIL and SR was officially announced in December of last year, prior to his appointment.

Another unusual case is Kim Tae-seung, head of the Korea Railroad Corporation. While KORAIL is headquartered in Daejeon, CEO Kim resides in Gochang-gun, Jeollabuk-do. Although both Daejeon and Gochang-gun are outside the capital region, it is difficult to consider them physically close. CEO Kim, a former professor at Inha University, also has little connection to politics. Gochang-gun is his hometown, and he maintains his residence there to this day.

As shown, the registered addresses of many heads of quasi-market public enterprises located outside the capital region do not match their headquarters. While some counter that providing official residences means work is not significantly impacted, criticism that this arrangement contradicts the purpose of relocating public institutions remains constant. This is the backdrop for the persistent calls from local communities outside the capital region for the mandatory residence of public institution heads.

This article was automatically translated by AI. There may be errors compared to the original Korean article.
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