Since the launch of the Lee Jae-myung administration, only six new heads of public institutions have been appointed. One-fourth of all public institution chief posts are currently vacant. Acting chiefs are lining up to attend presidential work reports.
In the meantime, the presidential office's capacity has been focused on pending issues such as Korea-U.S. tariff talks, and the government's review of "public institution consolidations and abolitions" has also contributed to delays in selecting heads of institutions. As President Lee Jae-myung raised the issue of vacant chief posts during a work report, the selection process is expected to pick up speed.
◇ 90 chief posts vacant or expired… only six appointments
A full survey by ChosunBiz of Alio, the public institution management information disclosure system, on the 19th found that among 344 public institutions in total (including affiliated agencies), 90 (26%) have vacant chief posts or expired terms. Of these, 49 are completely vacant, and 41 are being filled by previous chiefs whose terms have ended but continue in the role. Including institutions whose terms are set to end in January next year, the number of institutions with vacancies or expired terms rises to 98.
By contrast, since the launch of the Lee Jae-myung administration, those appointed as heads number only six: Yoo Jeong-bok, head of the Korea Water and Waste Works Association (July); Park Sang-jin, chairman of Korea Development Bank (September); Song Ki-do, president of the Korea Foundation (November); Lee Han-joo, chairman of the National Research Council for Economics, Humanities and Social Sciences (November); and Kim Sung-joo, chairman of the National Pension Service (NPS) (December). This contrasts with the completion of forming 19 ministries just 37 days after the administration launched.
The leadership vacuum surfaced even in the recent livestreamed work reports. On the 16th, during the Ministry of Culture, Sports and Tourism's work report, President Lee Jae-myung heard that the presidency of the Korea Tourism Organization had been vacant for a long time, and jokingly said to Kang Hoon-sik, the presidential chief of staff seated next to him, "What have you been doing without making appointments quickly?" When acting chiefs from Gugak Broadcasting Foundation (KIBF) and the Korea Culture and Tourism Institute (KCTI) also reported in place of chiefs, Lee said, "It's been vacant since September, and you still haven't decided on a president?" and "There are many vacancies because I'm not doing my job properly."
◇ Appointment approach cautious under "public institution consolidation and abolition" policy
Under current law, heads of public institutions are recommended as multiple candidates by an executive recommendation committee. After that, the Minister of the relevant ministry appoints them, or the president appoints them upon the Minister's recommendation. For public institution chiefs appointed by the president, additional vetting by the presidential office is required.
A ruling bloc official said, "Since late July, the presidential office has focused for as long as three months on U.S.-related tariff and security negotiations," adding, "Naturally, vetting of personnel for institution chiefs was pushed back."
The prolonged personnel vacuum is also intertwined with the policy of consolidating, abolishing and reforming public institutions. Since its launch, the presidential office has prepared to adjust overlapping functions among institutions and to overhaul evaluation and performance systems across the board. This is because issues of lax management and overlapping functions at public institutions, which spend about 40% of GDP, have been raised multiple times.
President Lee Jae-myung in August ordered the formation of a public institution consolidation and abolition task force (TF), and last month included public corporation advancement among the five key reform tasks. In recent work reports, Lee also directly asked whether functions were overlapping among institutions. To Kim Jong-cheol, deputy head of the Korea Employment and Labor Educational Institute (KELI), Lee said, "It seems to overlap with the institution we saw earlier. Is this organization really necessary?" Lee also asked about the distinctiveness of the Publication Industry Promotion Agency (KPIPA) and the Literature Translation Institute of Korea (LTI Korea), saying, "The overseas expansion support work seems to overlap a bit."
The opposition has raised suspicions that the president is trying to use consolidation and abolition as a pretext to "swap out" chiefs appointed under the previous administration.
◇ Personnel moves likely to speed up around year-end… attention on "swapping out" previous chiefs
About 20 institutions have begun open recruitment for chiefs, including Korea Railroad Corporation (KORAIL), Korea Land & Housing Corporation (LH), the Korea Tourism Organization (KTO), and the Korea Racing Authority (KRA). Starting with this work report, the presidential office decided to speed up personnel work for the remaining institutions as well. During the process, the status of chiefs appointed under the Yoon Suk-yeol administration could emerge as a political issue. When President Lee earlier publicly rebuked Incheon International Airport Corporation (IIAC) President Lee Hak-jae, a former People Power Party lawmaker, political circles immediately spoke of "pressure to resign."
A key ruling bloc official said, "As the president reviews the overall situation this time, isn't he building the case for unnecessary consolidations and abolitions of public institutions?" A presidential office official also said, "The president has spoken several times about vacant chief posts and instructed the chief of staff, so it will now proceed in earnest."