Policy Finance Facility Management Companies to Be Consolidated Into One... Integration Expected to Face Hurdles Over 'Different Wage Systems'

[Financial News] The government is moving to consolidate five facility management companies (FMCs) affiliated with financial public institutions as it pursues the integration of subsidiaries with fewer than 100 employees that perform similar work. The government also plans to have Korea Development Bank (KDB) and Korea Asset Management Corporation (KAMCO) pursue vertical integration with their respective subsidiaries. However, some institutional officials voiced concerns, saying, "Difficulties are expected because there has not been enough consultation on the matter."
Under the Public Institution Functional Reform Plan announced by the government on the 3rd, KAMCO FMC, Yewool FMC, San-eun Biz, Su-eun Plus, and Shinbo Operations Management will be merged and consolidated into Policy Finance FMC (tentative name). The government drew up the plan after President Lee Jae Myung pointed out, "Too many institutions performing similar work have emerged after taking advantage of loopholes to establish subsidiaries, amid the reality that civil servants and public institutions find it difficult to increase their workforce."
The consolidation plan was reportedly announced without consultation with the institutions concerned. An official from a financial public institution said, "We were notified only the day before the announcement that the relevant details would be released today." Another official said, "Because the wage systems differ among the FMCs, labor-management negotiations are expected to be difficult if the companies are actually consolidated."
Under the Labor Standards Act, when employees perform the same work within the same company, the same wage system must be applied.
In fact, Su-eun Plus's average annual salary in 2025 was KRW 52.55 million, while KAMCO FMC's was KRW 43.33 million. Shinbo Operations Management's average was only KRW 35.91 million. An industry official said, "Many FMCs were established when public corporations converted cleaning and other facility management workers to regular employees as the conversion of nonregular public institution workers was pursued as a state policy under the Moon Jae-in administration. However, annual salaries vary widely depending on the location and size of the actual workplaces." The official added, "Actual integration will likely be difficult because of issues such as hiring managerial-level personnel."
The integration of KAMCO and KAMCO Ship Investment Management, as well as KDB and KDB Investment, could also face difficulties before reaching actual consolidation because the subsidiaries have their own distinct roles.
A KAMCO official said, "This integration had been discussed in advance before the government's announcement," but added, "We still need to begin reviewing the details." KAMCO Ship Investment Management was established in 2009 to support the restructuring of shipping companies when the Restructuring Fund was created. After the fund was liquidated, its role was changed so that it would continue conducting ship finance business using the corporation's funds, and it has operated as a subsidiary ever since.
[email protected] Park Moon-soo Reporter