Calls to Scrap Port Authority Merger Take Center Stage at Oceans Ministry Audit

[Financial News] At the National Assembly audit of the Ministry of Oceans and Fisheries held in Busan on the 12th, whether the government’s plan to merge the port authorities had been thoroughly scrutinized emerged as an issue.
Ahead of the audit that day, local civil society groups, including the Busan Citizens’ Coalition for Economic Justice (Busan CCEJ) and the Busan Port Authority Labor Union, held a press conference in front of the Ministry of Oceans and Fisheries’ Busan annex and called for the merger of the port authorities to be scrapped.

“It is clear what this National Assembly audit should be asking about: the government’s plan to merge the four port authorities in Busan, Ulsan, Incheon, and Yeosu-Gwangyang,” they said. “We demand that this audit thoroughly examine the basis and procedures for the merger decision. We also want the government to immediately withdraw its plan to pursue the merger.”
As grounds for their position, they said the benefits of the merger had yet to be demonstrated, and that making the “decision” first and conducting a review later amounted to a hasty process. They also stressed that ports are public assets of local communities, and that it is wrong for the central government to try to take those assets unilaterally.
They also warned of potential adverse effects from the merger. They argued that if the Korea Port Authority (proposed name) were established, prompt decision-making at ports across the country would become more difficult and port competitiveness would instead decline. They also argued that the merger could lead to conflicts of interest among ports over investment and development gains, intensifying financial and political conflicts among local governments.
Rep. Lee Seong-gwon also sharply criticized the government’s policy of integrating the port authorities at the audit, calling for the discussion to be withdrawn immediately.
He criticized the integration, saying, “Pursued without sufficient prior consultation with local communities and the port industry, it is a hasty merger that ignores the characteristics and competitiveness of each port,” and added, “It is nothing but a step backward disguised as reform.”
He also questioned the budget savings and efficiency gains that the government cited as justifications for the merger.
Rep. Lee emphasized, “A 2011 study on integrating port authorities conducted by the then Ministry of Land, Transport and Maritime Affairs concluded that the gains in efficiency and budget savings from integration would not be significant, and that establishing a system for consultation and coordination among port authorities would be preferable to integration.” He added, “True reform of port authorities lies not in integration, but in expanding local equity participation and strengthening autonomy in personnel and management.”
[email protected] Byeon Ok-hwan Reporter