Korean Government Overhauls 109 Public Institutions
The government is pushing ahead with the mergers and abolitions of 109 public institutions and a full-scale second phase of regional relocations in order to resolve the overcrowding in the Seoul metropolitan area and enhance the efficiency of the public sector.The government held the 11th Public Ins
The Korean government is implementing a comprehensive overhaul of 109 public institutions to address overcrowding in the Seoul metropolitan area and improve public sector efficiency. On September 3, the 11th Public Institutions Steering Committee held a meeting to finalize the 'Public Institution Functional Reform Plan' and the 'Direction for the Second Relocation of Central Administrative Agencies and Public Institutions.'
Prime Minister Han Seong-sook highlighted the need for balanced growth, noting that the unipolar system of the Seoul metropolitan area and national imbalance is at the root of many current problems. The government aims to achieve this through strategic structural reform, unification of similar functions, and merger of subsidiaries and small-scale institutions.
Notable changes include the merger of five power generation companies into 'Korea Power,' the separation of the Korea Land and Housing Corporation into two entities focused on housing development and welfare, and the consolidation of KORAIL, SR, the Korea National Oil Corporation, the Korea Gas Corporation, and four regional port authorities.
Additionally, 83 institutions will be merged, and 15 will undergo strategic structural reform. The government plans to relocate around 350 public institutions, with relocation in the Seoul metropolitan area expected by the fourth quarter of the year. The process will prioritize maintaining employment succession and compensation levels for affected employees.
The regional relocation of second-tier central administrative agencies, such as the Ministry of Justice and the Ministry of Gender Equality, is scheduled to begin in the first half of 2027, with the Ministry of Foreign Affairs and the Ministry of Unification still to be determined. The Presidential Office in Sejong is set to be completed by August 2029, and the National Assembly Sejong Building aims for completion in 2033.
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