Ministry of Land, Infrastructure and Transport Plans to Cut 2,000 Employees at Public Institutions... 'Most Are Permanent Positions'

Assemblyman Kim Du-kwan, "Reducing Only Low-Wage Staff... A Showy Innovation Plan"

[Asia Economy Reporter Cha Wanyong] Public institutions under the Ministry of Land, Infrastructure and Transport are planning a large-scale workforce reduction of nearly 2,000 employees in accordance with the public institution innovation plan. In particular, a large number of fixed-term contract workers, who receive lower treatment compared to regular employees, are included in the reduction targets.

According to the "Public Institution Innovation Plan" submitted by the Ministry of Land, Infrastructure and Transport and disclosed on the 2nd by Kim Doo-kwan, a member of the National Assembly Land, Infrastructure and Transport Committee from the Democratic Party of Korea (Gyeongnam Yangsan-eul), 18 public institutions under the Ministry plan to reduce a total of 1,948 positions.

Korea Expressway Corporation has the largest reduction scale with 424 positions, followed by ▲Korea Railroad Corporation 313 ▲KORAIL Logistics 296 ▲KORAIL Networks 178 ▲Korea Land and Housing Corporation 136 ▲KORAIL Tech 127 ▲KORAIL Tourism Development 101, all planning triple-digit reductions.

Additionally, ▲Housing Management Corporation 72 ▲Korea Expressway Corporation Service 70 ▲Korea Airports Corporation 40 ▲Korea Transportation Safety Authority 36 ▲National Railroad Corporation 30 ▲KORAIL Distribution 30 ▲Jeju Free International City Development Center 28 ▲Housing and Urban Guarantee Corporation 23 ▲Korea Real Estate Board 18 ▲Land Information Corporation 16 ▲Incheon International Airport Corporation 10 follow.

However, many public institutions are criticized for minimizing reductions in higher-ranking positions and focusing workforce cuts mainly on fixed-term contract workers with relatively lower wages, which is seen as a superficial measure.

For example, Korea Expressway Corporation planned to reduce 424 employees, but 417 of them are field support staff, and only one executive at level 2 or above is included in the reduction. The field support staff are toll collectors converted to fixed-term contract workers under the Moon Jae-in administration’s public sector regularization policy. Although they perform environmental maintenance tasks, the corporation considers these "non-core functions" and plans to gradually reduce them.

KORAIL Logistics, a subsidiary of Korea Railroad Corporation, also plans to reduce 296 fixed-term contract positions that were increased in line with the regularization policy. These correspond to operational staff belonging to the in-house railroad operations unit. Higher-ranking positions are excluded from reductions due to being operated with minimal personnel.

Furthermore, KORAIL Tech plans to reduce 127 fixed-term contract positions but only one position at level 2 or above, and KORAIL Tourism Development plans to cut 80 fixed-term contract positions and one level 1 position. Other institutions with significant fixed-term contract reductions include ▲Housing Management Corporation (72) ▲Korea Land and Housing Corporation (68) ▲Housing and Urban Guarantee Corporation (23) ▲KORAIL Distribution (18).

Assemblyman Kim Doo-kwan said, “The Yoon Suk-yeol administration’s public institution innovation plan is a showy reform that only reduces low-wage fixed-term contract workers,” adding, “We will thoroughly monitor to ensure that the reduction of fixed-term contract workers does not lead to a decline in the quality of public services.”