[Unstable Public Institutions] Stalled Appointment Process: One in Four Faces Leadership Vacuum

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Recently, while the appointment of public institution heads has been accelerating, it has been found that one out of every four public institutions is still experiencing a leadership vacuum at the top.

According to an analysis by The Asia Business Daily on April 21 of the 342 public enterprises, quasi-governmental institutions, and other public agencies designated as public institutions this year, 36 institutions (10.5%) currently have a vacant top position. In 32 institutions (9.3%), the previous head continues to serve as acting head even though their term has expired, and in 17 institutions (5%), the term of the current head will expire in the first half of the year. In total, 85 institutions (24.8%) are currently undergoing a period of leadership instability.

Among the organizations with vacant positions are many that are directly connected to the public economy, such as the National Railroad Authority, Korea Land & Housing Corporation (LH), Korea Expressway Corporation, Incheon International Airport Corporation, Korea Airports Corporation, Korea Industrial Human Resources Corporation, and Korea Creative Content Agency. These public institutions play a central role in fulfilling the government's policy agenda, but prolonged vacancies in leadership are inevitably causing setbacks in the execution of major projects, personnel management, and organizational oversight.

Korea Land & Housing Corporation (LH), which is supposed to spearhead the Lee Jae-myung administration's expansion of public housing supply, is still operating under an unprecedented acting-head system, while organizations such as the Korea Technology Finance Corporation, Korea Gas Corporation, and KEPCO KPS continue to be run by heads whose official terms have already expired.

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A considerable number of institutions have also failed to appoint a new leader for nearly two years. Both major airport corporations currently have vacant president positions. In the case of Korea Airports Corporation, the leadership vacuum has continued since April 2024 when former President Yoon Hyungjung resigned during the Yoon Suk-yeol administration.

Each public institution with a vacant leadership position is hoping for a swift appointment process, but there are expectations that the personnel gap may last even longer due to the ongoing trend of public institution consolidation and reform. There are also concerns that, following the local elections scheduled for June, the appointments could be influenced by favoritism toward political allies and supporters. If leadership vacancies persist amid the intensifying global supply chain crisis caused by the escalating Middle East conflict, as well as external economic challenges such as high exchange rates and inflation, the Lee Jae-myung administration's ability to govern could be further weakened.

Some experts point out that in order to resolve the recurring issue of leadership vacancies in public institutions with each administration, the overwhelming personnel authority concentrated in the president must be reduced. Kang Minseong, professor of public administration at Kyung Hee University, noted, "The president currently holds the authority to make more than 2,000 appointments, including the vice-ministers of central government ministries, heads of public institutions, national think tanks, and even local party chairs," adding, "It is worth considering whether the president should be responsible for appointments in such specialized areas."

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