President Roh’s Former Entourage “Parachuting” into Public Corporation Boardrooms

Despite their lack of specialty, a number of inner-circle members of the Presidential Office and the ruling party are being appointed to directorial positions in state corporations under the control of the Ministry of Commerce, Industry and Energy.

These plum positions are increasingly being considered as “the war spoils of the regime,” which in turn elicits criticism over its sinecurist personnel management.

Korea Resources Corporation named Yang Min-ho, 48 years old, former presidential civil affairs secretary, to be auditor general.

Yang worked as a member of a special committee at the National Conference for New Politics and as a member of President Roh Moo-hyun’s transition team. In February through December of last year, he worked at the civil affairs office of the Presidential office. Prior to Yang’s appointment, Korea Gas Corporation on May 22 named Cho Kwang-han, former members of the transition team and presidential publicity secretary, as director.

The appointment of Cho has been delayed for three month as the corporation’s labor union mounted opposition to the move, citing his lack of expertise.

In January, Lee Dong-seop, organizer of President Roh’s electoral campaign, was appointed director of Korea Coal Corporation, and Lee Tae-hyun, adviser to the President’s transition team, was appointed director of Korea District Heating Corporation.

Additionally, Shin Jong-kwan, organizer of Busan for President Roh’s campaign, was appointed auditor general of the Korea Export Insurance Corporation in June of last year. Korea South-East Power Co. and Korea Midland Power Co. have named former Presidential entourages as directors.

“Sinecurist personnel management with little consideration of an individual’s expertise will hurt the efficiency of public corporations,” Ahn Jae-wook, professor at Kyunghee University, said. “The reason why sinecures still exist is that the ruler wants to maximize his power by parachuting his entourages into plum positions.”

An auditor general at Korea Resources Corporation earns 65 million won (without an expense account), about the same level of the president, with a bonus package.

Ki-Jeong Ko koh@donga.com