Public Agency Mergers Set to Force Out Many Yoon-Era Chiefs

South Korea’s plan to merge 109 public institutions is expected to end the tenures of many agency chiefs appointed under former President Yoon Suk Yeol, with roughly 100 top positions set to disappear.

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There is no rule saying that the current agency chiefs cannot carry out the work.

The Ministry of Finance and Economy said the number of public institutions would fall from 524 to 415. The targets include 15 institutions selected for strategic restructuring, 11 with overlapping functions and 83 subsidiaries or small agencies. The consolidation of multiple institutions into single bodies will reduce the number of chief executive posts by about 100.

A study by Leaders Index found that 226 of the 306 public institutions with sitting chiefs had leaders appointed during the Yoon administration. Adding six officials appointed under the preceding Moon Jae-in government, the number of chiefs selected by previous administrations reached 232. Of those, 133 still had more than a year left in their terms when the study was conducted.

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New recruitment procedures for agency chiefs and auditors will be conducted to coincide with the launch of Korea Power.

The first major changes are expected at five state-owned power companies scheduled to merge into a new entity, tentatively named Korea Power, in October next year. Four of the five companies currently have presidents appointed under Yoon, and each has more than a year remaining in office. The merged company’s permanent executive positions would also fall from 10 to four. Climate, Energy and Environment Minister Kim Seong-hwan said existing chiefs could remain, but the government would open new recruitment procedures for the president and auditor when Korea Power launches.

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The merger process must not lead to a deterioration in working conditions.

The government says ordinary employees will retain their jobs. The institutions targeted for merger employ 128,716 people, and officials say duplicated staff will be reassigned while recruitment in artificial intelligence and other new technology fields will continue. Workers remain concerned about differing pay and welfare systems, new assignments and possible relocations. The government is considering gradually increasing pay at lower-paid institutions, while the five power companies’ headquarters location remains undecided.

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Uncertainty over employment and workplaces for employees and partner companies may grow, so the process should move quickly to prevent it from lasting.