[Editor’s Note] We aim to take a step further. The investigative reporting team at Aju Economy, known as 'Balpum,' consists of reporters in their 20s and 30s who engage directly with people to document their voices. We track all aspects of life, including economy, industry, politics, society, real estate, and culture. Issues have always existed but often remain hidden and unreported. 'Balpum' seeks to reveal the unseen and amplify unheard voices through persistent inquiry. We will walk to places that readers cannot reach.
'The Northern Provinces Committee (NPC), often labeled as 'ineffective,' is once again at the center of a debate over its existence. Allegations of attendance issues among some governors, coupled with suspicions of improper use of operational funds, have raised questions about the necessity of an organization that maintains an annual budget of over 10 billion won (approximately $8.5 million).The NPC is an administrative body that symbolically oversees the unrecaptured regions of Hwanghae Province, South Pyongan Province, North Pyongan Province, South Hamgyong Province, and North Hamgyong Province, based on constitutional territorial provisions. However, the emotional connection has weakened due to the aging of the first generation of displaced persons, and there are ongoing criticisms that the support for northern settlers and the preservation of northern culture overlap with existing departmental projects. With the added controversy surrounding the governors' conduct, calls for a comprehensive review of the agency's role and budget structure are growing.
Late Arrivals and Nearby Expense Claims: Controversy Surrounds NPC Governors' Conduct
The Aju Economy investigative team conducted checks on the attendance of NPC governors from June 30 to July 11, revealing significant gaps in attendance management among some governors.
Governor Ji Seong-ho of North Hamgyong Province was found to have repeatedly arrived late or left early without proper leave for business trips or vacations. Notably, during the inspection period, he did not arrive on time even once on regular workdays, excluding official holidays and business trips. This raises unavoidable questions about the appropriateness of his conduct as a vice-ministerial level public official.
According to the Ministry of Personnel Management, vice-ministerial level public officials are subject to the same basic working hours as regular national civil servants, which are 9 a.m. to 6 p.m.
In addition to attendance issues, suspicions of improper use of operational funds have also emerged. The investigative team analyzed expense account data obtained through the office of National Assembly member Ko Dong-jin, revealing that Governor Ji used a total of 8.27 million won (approximately $6,900) for operational expenses over 44 instances in the past six months.
The issue lies in the timing and location of these expenses. Of the total expenses, 18 transactions, or 40.9%, occurred outside his workplace in Seoul. Among these, six transactions totaling 1.484 million won (approximately $1,200) were made at restaurants located within a 10-minute drive from his home in Incheon. This accounted for 17.9% of the total expenses.
The most frequently used location was a restaurant approximately 6 kilometers from his home, while the closest was about 2 kilometers away. Notably, many of these transactions occurred on Friday evenings or weekends, raising suspicions that public funds were being used for private purposes.
According to government guidelines on budget and fund management, operational funds should be used for official duties. Especially when used on public holidays or in areas unrelated to the workplace, the necessity must be justified. Given the repeated occurrences of expenses outside the workplace, near his home, and on weekends, there are calls for an institutional review.
The Administrative Monitoring Center of the Citizens' Coalition for Economic Justice stated, "If operational funds are repeatedly used outside the workplace and near one's home, it raises suspicions of personal misuse. A comprehensive review of the relevance to work is necessary."
Governor Ji's office responded to the attendance issues by stating, "We apologize for not managing attendance properly." Regarding the allegations of improper use of operational funds, they stated, "If there are parts that were used inappropriately according to regulations, we will take note of that."
Of 10 Billion Won Budget, Only 2.2 Billion for Projects: NPC Stuck in Organizational Maintenance
The allegations of misconduct among governors point to fundamental issues within the NPC. Despite an annual budget exceeding 10 billion won, the funds are primarily concentrated on personnel and organizational maintenance rather than actual projects.
Since its establishment in 1949, the NPC has claimed to focus on research and investigation of North Korean regions, fostering unity and communication among northern residents, supporting northern settlers, preserving intangible cultural heritage, and nurturing the next generation. To this end, it operates a large honorary organization, including five vice-ministerial governors and honorary mayors, county heads, and town heads.
However, the administrative environment has changed significantly since its establishment. The first generation of displaced persons is rapidly aging, and participation from the second and third generations is limited. There are criticisms that support for North Korean defectors overlaps with the Ministry of Unification's responsibilities, and the preservation of intangible cultural heritage overlaps with the Cultural Heritage Administration's tasks. This raises questions about what unique projects the NPC can claim.
The budget expenditure structure further amplifies these concerns. In 2025, the NPC's total budget was 10.67 billion won. Of this, only 2.29 billion won (approximately 21.6%) was allocated for 'support related to northern residents.'
Specifically, 1.209 billion won was allocated for support of organizations and events related to northern residents, 613 million won for support of North Korean defectors and northern residents, and 469 million won for facility renovations. In contrast, over 8.3 billion won (approximately 78.4%) was allocated for personnel costs, treatment, and operational expenses, which are primarily for organizational maintenance. This means that the costs of maintaining the organization overshadow actual project funding.
A closer look at the expenditure items reveals a significant portion allocated to high-ranking and honorary positions. Each of the five vice-ministerial governors receives an annual salary of 159 million won (approximately $132,000). Additionally, each governor is allocated 14.4 million won (approximately $12,000) annually for operational expenses, totaling 72 million won for all five.
Starting in 2024, official vehicles will be replaced with Genesis G80 electric cars, with an annual rental cost of 12.44 million won for five vehicles, excluding driver salaries and fuel costs. The budget for maintaining the honorary positions is also substantial, with honorary mayors and county heads receiving monthly allowances of 370,000 won and 140,000 won, respectively. As of 2025, there are 496 appointed honorary town heads, indicating that maintaining these positions alone costs over 1.2 billion won annually.
However, this figure reflects temporary numbers due to vacancies in some regions like Hwanghae and North Hamgyong provinces. If all 829 positions were filled, the budget for honorary allowances would rise to 1.8 billion won annually.
In contrast, there are few personnel available to plan policies and implement field projects. The current NPC organization chart shows 51 personnel, with an authorized strength of about 45. Excluding 23 individuals who serve as dedicated drivers and secretaries for the governors and nine who hold concurrent positions, only 28 personnel are responsible for policy planning and field operations.
While the NPC expresses difficulties due to a lack of project funding, it is trapped in a structural contradiction where most of its limited budget is tied up in high-ranking, honorary, and organizational operations. As the times change and the agency's original purpose fades, there are calls for a redefinition of its functions away from the existing high-cost, low-efficiency operational model.
Displaced Persons and Northern Settlers Say NPC's Role Is Hardly Felt
The criticism that a significant portion of the budget is spent on organizational maintenance leads to questions about the NPC's effectiveness. The agency's core justification is support for northern residents, aiding northern settlers, and preserving the memories of displaced persons. However, many among the affected groups express skepticism, stating, "It is hard to feel what this organization does."
On July 20, the investigative team met with northern settlers and displaced persons in the Seoul, Gyeonggi, and Incheon areas to gauge their perceptions of the NPC. The responses were largely negative. Many were unaware of the NPC's existence or, if they were, had not experienced any tangible assistance.
Im Young-sun, the 63-year-old chairperson of the Northern Nine Residents Settlement Committee, who has lived in South Korea for 33 years, stated, "The original goals of unification vision and settlement support have disappeared. The real purpose has become maintaining the organization and securing personnel costs." He pointed out that after the emotional center of the first generation of displaced persons weakened, the structure has become entrenched in maintaining the budget by repeatedly emphasizing the symbolic nature of the constitutional territorial provisions.
Northern activist Jo Kyung-il, 38, also remarked, "The NPC is not active. I have only attended one forum; I don’t know what else it does. It either needs to be completely abolished or undergo a complete overhaul."
He highlighted the disconnect between displaced persons' organizations and northern settlers, noting, "If the NPC is an organization based on displaced persons, it would be natural for northern settlers to join, but some displaced persons' groups perceive this as a power issue and are hesitant." The NPC should serve as a bridge between displaced persons and northern settlers, but in reality, generational and group gaps are evident.
Han Song-yi, a 34-year-old broadcaster and YouTuber from a northern settler background, identified the NPC's low recognition as a problem. She stated, "I have heard of the NPC, but I do not know the specific projects related to exchanges or settlement support between northern settlers and northern residents. Given its good intentions, it needs to be better known among more northern settlers."
She added, "Even among younger northern settlers, the NPC is not well recognized. Many do not know what help they can receive or what projects they can participate in." Some younger northern settlers even confuse the Northern Residents Association with the NPC.
She called for a change in promotional methods, suggesting, "The way activities related to the NPC are communicated should change. Online channels like YouTube or short-form videos should be utilized to enhance accessibility. I am willing to participate in promotions if necessary."
Responses from displaced persons were similarly critical. Choi, a 62-year-old third-generation displaced person, remarked, "As a third-generation, I feel little connection when attending community meetings, so I don’t go often. I have only attended the NPC sports event once on behalf of my father, and aside from receiving a commemorative towel, I found little meaningful value in it."
He expressed, "Even if 10 billion won or 100 billion won is invested in the organization, it feels like a story that has nothing to do with us. Most displaced persons are unaware of the timing of events, and it would be more effective to significantly reduce the budget and allocate the remainder to humanitarian organizations or socially needed areas rather than spending it on events."
Choi also pointed out the NPC's lack of communication, stating, "I have never received a single message from the NPC on holidays or birthdays. If there were a list of displaced persons, I could at least receive a text, but I do not feel even that basic management." He added, "If communication management is inadequate, it raises questions about the transparency of budget execution."
Kim, a 68-year-old second-generation displaced person, criticized the NPC's events for not adequately reflecting the realities of displaced persons. He stated, "I have participated once, but due to the priority of my business, it is realistically difficult to attend events like sports competitions frequently."
He also noted the weakening sense of identity due to generational changes, saying, "Unlike the first-generation elders who have deep-seated feelings about their hometown, the sense of belonging as displaced persons fades among the second and third generations. The first generation hoped for a symbolic place to convey the history of the North and the pain of displacement, and there is a need for projects that preserve such memories."
On July 20, the investigative team met with northern settlers and displaced persons in the Seoul, Gyeonggi, and Incheon areas to gauge their perceptions of the NPC. The responses were largely negative. Many were unaware of the NPC's existence or, if they were, had not experienced any tangible assistance.
Im Young-sun, the 63-year-old chairperson of the Northern Nine Residents Settlement Committee, who has lived in South Korea for 33 years, stated, "The original goals of unification vision and settlement support have disappeared. The real purpose has become maintaining the organization and securing personnel costs." He pointed out that after the emotional center of the first generation of displaced persons weakened, the structure has become entrenched in maintaining the budget by repeatedly emphasizing the symbolic nature of the constitutional territorial provisions.
Northern activist Jo Kyung-il, 38, also remarked, "The NPC is not active. I have only attended one forum; I don’t know what else it does. It either needs to be completely abolished or undergo a complete overhaul."
He highlighted the disconnect between displaced persons' organizations and northern settlers, noting, "If the NPC is an organization based on displaced persons, it would be natural for northern settlers to join, but some displaced persons' groups perceive this as a power issue and are hesitant." The NPC should serve as a bridge between displaced persons and northern settlers, but in reality, generational and group gaps are evident.
Han Song-yi, a 34-year-old broadcaster and YouTuber from a northern settler background, identified the NPC's low recognition as a problem. She stated, "I have heard of the NPC, but I do not know the specific projects related to exchanges or settlement support between northern settlers and northern residents. Given its good intentions, it needs to be better known among more northern settlers."
She added, "Even among younger northern settlers, the NPC is not well recognized. Many do not know what help they can receive or what projects they can participate in." Some younger northern settlers even confuse the Northern Residents Association with the NPC.
She called for a change in promotional methods, suggesting, "The way activities related to the NPC are communicated should change. Online channels like YouTube or short-form videos should be utilized to enhance accessibility. I am willing to participate in promotions if necessary."
Responses from displaced persons were similarly critical. Choi, a 62-year-old third-generation displaced person, remarked, "As a third-generation, I feel little connection when attending community meetings, so I don’t go often. I have only attended the NPC sports event once on behalf of my father, and aside from receiving a commemorative towel, I found little meaningful value in it."
He expressed, "Even if 10 billion won or 100 billion won is invested in the organization, it feels like a story that has nothing to do with us. Most displaced persons are unaware of the timing of events, and it would be more effective to significantly reduce the budget and allocate the remainder to humanitarian organizations or socially needed areas rather than spending it on events."
Choi also pointed out the NPC's lack of communication, stating, "I have never received a single message from the NPC on holidays or birthdays. If there were a list of displaced persons, I could at least receive a text, but I do not feel even that basic management." He added, "If communication management is inadequate, it raises questions about the transparency of budget execution."
Kim, a 68-year-old second-generation displaced person, criticized the NPC's events for not adequately reflecting the realities of displaced persons. He stated, "I have participated once, but due to the priority of my business, it is realistically difficult to attend events like sports competitions frequently."
He also noted the weakening sense of identity due to generational changes, saying, "Unlike the first-generation elders who have deep-seated feelings about their hometown, the sense of belonging as displaced persons fades among the second and third generations. The first generation hoped for a symbolic place to convey the history of the North and the pain of displacement, and there is a need for projects that preserve such memories."
Calls for Abolition and Reform Grow in Political Circles
Demands for reform of the NPC continue to emerge from political circles. The key issues include transitioning the NPC governors to honorary positions, restructuring the operational organization around the secretariat, and even abolishing the agency and transferring its functions.
Independent lawmaker Choi Hyuk-jin pointed out during a National Assembly audit in December that "if this organization were restructured, it could save over 10 billion won annually. Wouldn’t it be better to abolish it and transfer the NPC's duties to the Ministry of Unification?"
Yong Hye-in, a representative of the Basic Income Party, has been a prominent advocate for NPC reform. She criticized the NPC's budget for only increasing personnel costs over the past nine years, stating, "To escape being a target of ridicule as a 'job that sucks honey,' a significant overhaul of projects and organization must be carried out alongside amendments to the NPC Act."
She suggested that the NPC governors should be transitioned to honorary positions without pay and that the NPC secretariat should be strengthened to create a more practical organization.
Discussions about transitioning the NPC governors to honorary positions are not new. In 2004, then-Lawmaker Min Bong-ki and in 2006, then-Lawmaker Jeong Hyeong-geun each proposed amendments to the NPC Act to transition the governors to honorary roles, but these efforts were unsuccessful.
In February of this year, a bill was introduced to abolish the NPC. Jeon Jong-deok, a member of the National Assembly's Administrative Safety Committee from the Progressive Party, proposed the 'Abolition of the Special Measures Act on the Northern Provinces,' arguing that the NPC's operational budget is being wasted in a situation where access to unrecaptured areas and practical administrative execution is difficult. This bill is currently pending in committee.
Civil society has also supported the argument for abolition. The National Budget Research Institute highlighted the NPC's budget as a wasteful expenditure in a report delivered to President Lee Jae-myung last year, with Senior Researcher Lee Sang-min stating, "There is no alternative but to dismantle it. It is important to eliminate the 10 billion won spent on unnecessary organizations rather than discussing transitioning to honorary positions."
Independent lawmaker Choi Hyuk-jin pointed out during a National Assembly audit in December that "if this organization were restructured, it could save over 10 billion won annually. Wouldn’t it be better to abolish it and transfer the NPC's duties to the Ministry of Unification?"
Yong Hye-in, a representative of the Basic Income Party, has been a prominent advocate for NPC reform. She criticized the NPC's budget for only increasing personnel costs over the past nine years, stating, "To escape being a target of ridicule as a 'job that sucks honey,' a significant overhaul of projects and organization must be carried out alongside amendments to the NPC Act."
She suggested that the NPC governors should be transitioned to honorary positions without pay and that the NPC secretariat should be strengthened to create a more practical organization.
Discussions about transitioning the NPC governors to honorary positions are not new. In 2004, then-Lawmaker Min Bong-ki and in 2006, then-Lawmaker Jeong Hyeong-geun each proposed amendments to the NPC Act to transition the governors to honorary roles, but these efforts were unsuccessful.
In February of this year, a bill was introduced to abolish the NPC. Jeon Jong-deok, a member of the National Assembly's Administrative Safety Committee from the Progressive Party, proposed the 'Abolition of the Special Measures Act on the Northern Provinces,' arguing that the NPC's operational budget is being wasted in a situation where access to unrecaptured areas and practical administrative execution is difficult. This bill is currently pending in committee.
Civil society has also supported the argument for abolition. The National Budget Research Institute highlighted the NPC's budget as a wasteful expenditure in a report delivered to President Lee Jae-myung last year, with Senior Researcher Lee Sang-min stating, "There is no alternative but to dismantle it. It is important to eliminate the 10 billion won spent on unnecessary organizations rather than discussing transitioning to honorary positions."
Cycle of Budget Shortages and Ineffectiveness: The NPC at a Crossroads
However, the NPC claims it is unfairly targeted by calls for abolition. They argue that with the given budget and personnel, it is challenging to adequately perform its original duties of research, investigation, and cultural preservation.
On July 22, the NPC governors met with the investigative team at the NPC office in Jongno, Seoul, to express their disappointment over the discussions of abolition in political and civil society circles and to explain their internal circumstances. This was the first time the NPC governors directly addressed the media about the agency's situation.
Governor Jeong Gyeong-jo of South Pyongan Province stated, "Even if we want to conduct research, we lack the budget, experts, and time for investigations. Last year, I chased after the Ministry of Strategy and Finance countless times with the financial director, but we faced difficulties in securing the budget."
Governor Myung Gye-nam of Hwanghae Province also emphasized, "As Kim Gu said, cultural inheritance is crucial for becoming a cultural powerhouse. Although we face budget shortages, we will continue to strive to preserve and pass on northern culture even after the first-generation elders are gone."
Both governors identified the necessity of the NPC's existence in the context of research and preservation of northern culture. As the first generation of displaced persons rapidly disappears, documenting and preserving the cultural heritage of the North remains vital. However, they lamented that discussions of abolition, coupled with a lack of budget and expertise, are further stifling the agency's core functions.
This situation illustrates the structural problems facing the NPC. Currently, the budget structure is skewed towards maintaining high-ranking positions, honorary allowances, vehicle rentals, and operational costs rather than towards practical projects like research and cultural preservation. As a result, while there is insufficient capacity to implement projects, the costs of maintaining the organization continue to rise.
This cycle leads to a vicious circle. The lack of budget and expertise makes it difficult to achieve clear results, and the absence of results fuels the argument for ineffectiveness. As the argument for ineffectiveness grows, securing a budget becomes more challenging, further diminishing the agency's role.
Ultimately, if the functions of researching northern culture and preserving the memories of displaced persons are deemed necessary, there must be a restructuring of the organization and budget to enable these functions to be performed effectively. If the budget continues to be concentrated on organizational maintenance while practical projects are sidelined, the debate over the NPC's existence is unlikely to subside anytime soon.
Lawmaker Ko Dong-jin stated, "The operation of the NPC must reflect not only the public's perspective but also the realities of displaced persons. A bold restructuring and renewal are needed at this time."
* This article has been translated by AI.
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