Gyeongnam Province is taking comprehensive measures to secure the unified headquarters of power companies in Gyeongnam Innovation City, retain the headquarters of the Korea Land and Housing Corporation (LH), and preserve the naval academy in Jinhae.
In response to government discussions about the integration of power companies, the relocation of public institutions, the restructuring of LH, and the consolidation of military academies, the province has proactively outlined its position to protect local industries, public institutions, and military education.
Gyeongnam aims to attract the unified headquarters to stimulate the energy industry, promote local business growth, and create jobs. The province argues that the location of the headquarters should be determined based on factors such as relocation costs, continuity of operations, living conditions for employees, capacity to respond to energy transitions, and connections to the power industry, rather than merely distributing locations among regions.
A significant advantage is the ability to utilize the existing headquarters building of Korea Southern Power. In contrast, constructing a new headquarters in Naju (Gwangju) or Naepo could cost over 250 billion won, which Gyeongnam could entirely save.
The estimated savings are calculated by applying the per-employee office space standard to the estimated number of employees from the five institutions involved in the integration, factoring in the projected construction cost increase in Seoul for 2024 as reported by the Korea Institute of Civil Engineering and Building Technology.
Due to the government's coal phase-out policy, the Samcheok Power Plant (six units, by 2030) and Hadong Power Plant (six units, by 2031) are set to be gradually decommissioned, making Gyeongnam an optimal site for renewable energy transition demonstrations. The concentration of energy-related academic and industrial infrastructure, including Doosan Enerbility, Hyosung Heavy Industries, and the Korea Electric Research Institute, further strengthens this argument.
During a meeting of labor union leaders from five power companies held in June, the unions clearly expressed their opposition to the relocation to Naju. While this did not immediately endorse Gyeongnam's bid, the province plans to leverage labor sentiment and the convenience of utilizing existing facilities to gain an advantage in the competition.
Earlier, in April, the province signed an agreement with Jinju City and the Korea Southern Power labor union to attract the headquarters and is currently conducting a signature campaign and promotional activities. The provincial council and Jinju city council have also adopted proposals supporting the bid, and the province is focusing all efforts on immediate attraction rather than considering alternatives.
Gyeongnam has firmly stated that even if the government proceeds with the separation of LH, the headquarters must remain in Gyeongnam Innovation City. LH is a key public institution symbolizing the innovation city policy, and relocating an institution that has settled stably could undermine the credibility of national balanced development policies.
Currently, approximately 1,850 employees work at the LH headquarters, which has been operating a 20-story building since its relocation in 2015. The province emphasizes that utilizing existing infrastructure will be more efficient and cost-effective, even if organizational restructuring occurs.
Gyeongnam also clearly opposes the Defense Ministry's plan to consolidate the Army, Navy, and Air Force academies into a single 'National Military Academy' at the Daejeon Army Base. The province argues that the proposed integration, aimed for completion by 2036, should consider not only the efficiency of military education system reforms but also the professionalism of naval education and its economic impact on the region.
Training naval officers requires unique skills in areas such as ship operations, navigation, and maritime operations, distinguishing it from the Army and Air Force. Jinhae is the only location equipped with comprehensive training facilities, including naval bases and fleets, allowing for a connection between theoretical and practical education.
Notably, the naval academy hosts around 700 cadets and faculty members, and the spending of visitors and event attendees is closely tied to the local economy in Jinhae. If the academy relocates, it could lead to a decline in local businesses and an inevitable loss of Jinhae's urban identity. The alumni association of the Army, Navy, and Air Force academies is also demanding a complete withdrawal of the plan, and the Gyeongnam Provincial Council adopted a resolution on June 30 to retain the naval academy in Jinhae.
Park Il-woong, Deputy Governor of Gyeongnam Province, stated, "Given the existing facility utilization and the foundation of the energy industry, Gyeongnam Innovation City is the optimal location for the unified headquarters of power companies. We will work together with the community to secure this bid." He added, "We will actively respond to ensure that LH, which has taken root in Gyeongnam, does not leave, and we express our regret over the integration plan for the military academy announced without consulting local opinions. We will do our utmost to retain the naval academy in Jinhae, considering the professionalism of naval education and operational environment."
* This article has been translated by AI.
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