Labor Groups Condemn Public Institution Consolidation and Relocation Policies, Call for "Substantive Government-Labor Negotiations"

[Financial News] Labor groups called for substantive government-labor consultations, saying the government's plans to consolidate public institutions and relocate them outside the capital region were being pushed through unilaterally.
The FKTU's National Federation of Public and Industrial Workers' Unions held a rally titled 'Smash Unilateral and Coercive Public Policies! Condemn the Lee Jae Myung Administration's One-Way Rule! Resolve for an All-Out Struggle by Union Officials' in front of Cheong Wa Dae in Jongno District, Seoul, on the afternoon of the 28th. Organizers said more than 1,000 union officials from across the country attended the event.
The Public Workers' Federation argued that the institutional mergers and regional relocations directly affect workers' workplaces, employment, and working conditions, yet are being pursued without sufficient discussion with the unions involved.
In its resolution, the federation said, "On the 3rd, the government convened the Public Institutions Management Committee and approved and announced the Plan for Public Institution Functional Reform. It even tried to mislead people by claiming that the plan had been developed through five consultations with public-sector labor groups," adding, "But the government knows better than anyone whether the government-labor consultations it refers to were genuine consultations."
It continued, "The government says it will announce the second-round relocation of public institutions outside the capital region in the fourth quarter, but this too is merely using public-sector workers to reach an answer that has already been decided. The 550,000-member Public Workers' Federation declares an all-out battle. Through strong solidarity, we will block the government's unilateral and coercive public policies that undermine the public interest and secure substantive, multilayered government-labor negotiations."
Lee Ji-woong, chairman of the Public Workers' Federation, also emphasized, "During the presidential campaign, President Lee Jae Myung clearly promised substantive and comprehensive government-labor consultations, including the establishment of a public institution compensation committee. Do not merely go through the motions; fulfill your promise properly."
Kim Dong-myung, chairman of the Federation of Korean Trade Unions, who also took the podium, said, "We will firmly raise the issue and respond to unilateral policies that exclude workers' opinions and disregard the voices of those in the field."
Union representatives from the Korea National Oil Corporation (KNOC), Korea Land and Housing Corporation (LH), Busan Port Authority (BPA), Incheon Port Authority, Ulsan Port Authority, Yeosu Gwangyang Port Authority (YGPA), Korea Trade-Investment Promotion Agency (KOTRA), Public Home Shopping, and KEPCO Technology Service also attended the rally.
Earlier, on the 3rd, the government announced the 'Plan for Public Institution Functional Reform.' The plan, dubbed 'Public Institutions DIET 2026,' calls for reducing the total number of public institutions by 109: 15 through strategic structural reform, 11 by consolidating similar or overlapping functions, and 83 by merging subsidiaries and small institutions.
The government plans to merge five power-generation companies into one and four port authorities into one. It also plans to merge the Korea National Oil Corporation and Korea Gas Corporation (KOGAS). The plan includes separating the development and housing-welfare functions of the Korea Land and Housing Corporation (LH). Through the restructuring, the government aims to improve operational efficiency and fiscal sustainability while guaranteeing that employees of the merged institutions retain their jobs and do not suffer worsening working conditions.
The government is also pursuing a second-round relocation of around 350 public institutions currently based in the capital region. Under the principle of minimizing the number of institutions remaining in the capital region, it plans to announce the relocation plan in the fourth quarter of this year and begin the moves next year. The idea is to cluster functionally related institutions around existing innovation cities and develop them into regional growth hubs.
Meanwhile, Lee Ji-woong will begin an indefinite hunger strike in front of the National Assembly's main gate in Yeouido, Seoul, this afternoon to demand that the government and ruling party honor their promise on government-labor consultations.
[email protected] Park Seong-hyeon Reporter