KODIT Union to Block Commute of Chairman Kang Seungjoon, 'Former Bureaucrat'

No Internal Appointments Among KODIT Chairmen to Date

Union Opposes Appointment of MOEF “Parachute” as New Chairman

The labor union of Korea Credit Guarantee Fund (KODIT) announced it will attempt to block the first commute of newly appointed chairman Kang Seungjoon on March 11. The union argues that, as the role of KODIT has expanded with the implementation of the Lee Jaemyung administration's policy finance package in the form of guarantees, the organization should not be entrusted to an official from the Ministry of Economy and Finance who lacks internal expertise.

The Credit Guarantee Fund Branch of the National Financial Industry Labor Union plans to stage a protest to block Chairman Kang from entering the KODIT headquarters in Dong-gu, Daegu, at 9:30 a.m. on the same day. In a phone interview with The Asia Business Daily, a union representative said, "We question whether Chairman Kang is the right person to resolve the numerous pressing issues," adding, "We will first attempt to block his entry and then directly assess whether he is qualified to address the challenges facing KODIT." The union indicated that if Chairman Kang attempts to enter and requests a meeting, they will listen to his vision for KODIT's management and internal unity before deciding whether to continue the protest.

On the previous day, Lee Eogwon, Chairman of the Financial Services Commission, recommended Kang—formerly a director at the Ministry of Economy and Finance—for the post of KODIT chairman. The chairman of KODIT is nominated by the Chairman of the Financial Services Commission and appointed by the President. The Financial Services Commission cited Kang's "broad insight into the overall economy and finance, as well as his expertise in public institutions and fiscal management, gained through years of public service" as reasons for the recommendation. Earlier in January, KODIT's Executive Recommendation Committee held an open call for the next chairman, with Kang and Han Jongkwan, chairman of Jeonbuk Credit Guarantee Foundation and an internal candidate, emerging as the final contenders.

The union is concerned that appointing a chairman from a bureaucratic background who lacks practical field experience could delay the resolution of pending issues, especially as KODIT faces the dual challenges of expanding guarantee supply and strengthening risk management. Currently, KODIT must address both the response to non-performing real estate project financing (PF) and the management of marginal companies, as well as the task of expanding guarantee supply related to the government's 80 trillion won policy finance program.

The union also maintains its stance that parachute appointments must end, pointing out that, since KODIT's establishment in 1976, 21 out of 21 chairmen have mostly been from economic bureaucratic backgrounds. Of the 21 chairmen, 17 were former government officials, and among them, 12 came from economic ministries. There has never been an internal appointment. The union has criticized previous bureaucratic chairmen for prioritizing personal achievement over organizational development, splitting core businesses, and introducing the wage peak and performance-based pay systems without consultation, thereby exacerbating internal conflict. "The chairman's post has become a reward for specific groups or for political patronage with each change in administration," the representative said. "These chairmen have lacked an understanding of organizational culture and have had poor recognition of labor-management relations, fuelling conflict," the union asserted.

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