Even Non-Executive Directors in Public Enterprises... Pro-Government 'Nakhasan Appointments' Who Don't Refuse Positions

Incheon International Airport Corporation Non-Executive Director Appointment of Bae Jae-jung, Spokesperson for Lee Nak-yeon Camp
Political Figures Unrelated to Management Using 'Cunning Employment' Channels

Bae Jae-jung, spokesperson for the Lee Nak-yeon presidential primary campaign of the Democratic Party of Korea (left), campaigning during the general election for the National Assembly in April last year. On the right is Lee Nak-yeon, then co-chairman of the Democratic Party's joint election committee. (Photo by Yonhap News)

[Sejong=Asia Economy Reporter Son Sun-hee] As the administration enters its final phase, not only heads of public enterprises but also major public enterprise non-standing directors' positions are being filled one after another with pro-government figures. Unlike standing executives, non-standing directors attend board meetings held about a dozen times a year, but since these meetings decide major management matters, concerns arise not only about lack of expertise but also about potential harm to the autonomous management of public enterprises.

According to the government and political circles on the 29th, Bae Jae-jung, spokesperson for the Lee Nak-yeon camp, recently applied for the non-standing director position at Incheon International Airport Corporation (In-guk-gong). Spokesperson Bae is a former 19th Democratic Party member of the National Assembly (proportional representation) and ran in the last general election in Busan Sasang-gu, the former constituency of President Moon Jae-in, but was defeated. Since September last year, she worked as a political secretary at the Presidential Secretariat and retired in June. She is currently serving as spokesperson for Lee Nak-yeon’s Democratic Party presidential primary campaign. To apply for the In-guk-gong non-standing director position, Bae underwent employment screening by the Government Officials Ethics Committee for retired public officials, and approval was recently granted.

In-guk-gong conducted recruitment for the non-standing director position, which became vacant in June when former non-standing director Choi Jeong-cheol (Inha University professor) was appointed vice president of Incheon Port Authority, until the 24th. The annual salary is 30 million KRW, with a two-year term and possible one-year renewal. The appointment process involves recommendation by the In-guk-gong executive recommendation committee, approval by the Ministry of Strategy and Finance’s Public Institution Management Committee (Gong-un-wi), and shareholder meeting resolution, with the final appointment made by the Minister of Strategy and Finance. An In-guk-gong official stated, "The executive recommendation committee process is ongoing, so it is difficult to disclose applicants."

In-guk-gong’s current president Kim Kyung-wook is also a Democratic Party member who has run for office, and has already been embroiled in parachute appointment controversies. Standing director Kim Gil-sung (audit committee member) also ran as a Democratic Party preliminary candidate and served as policy planning secretary in the office of former National Assembly Speaker Chung Sye-kyun. With key executives already serving as pro-government parachute appointees, the non-standing director positions, which should check the executives, are also being filled by former politicians.

Unlike audit executives whose qualifications are legally specified, such as certified public accountants or lawyers with at least three years of related work experience, the qualifications for non-standing directors are vaguely defined even in law. According to the Act on the Management of Public Institutions, the recommendation criteria for non-standing directors are "persons with abundant knowledge and experience in management," allowing each institution to interpret this arbitrarily. The original intent was to appoint outside directors from diverse backgrounds, but in reality, it has become a loophole for political figures unrelated to management to secure employment.

Not only In-guk-gong but also major public enterprises such as Kangwon Land, Korea Electric Power Corporation, Korea District Heating Corporation, Korea Railroad Corporation, and Korea Land and Housing Corporation have non-standing directors who are politicians or former Blue House Presidential Secretariat officials. A government official criticized, "Even though it is the end of the administration, the recent level of parachute appointments is excessive."