Unions representing the four major port corporations in Busan, Incheon, Ulsan, and Yeosu-Gwangyang are opposing the government's push to consolidate port operations, demanding that the benefits, costs, and regional impacts of the merger be disclosed in advance.
On September 17, the unions held a press conference in front of the Ministry of Finance in Sejong City, rebutting comments made by Deputy Minister Heo Jang regarding the port merger. The unions criticized the government's assertion that the merger would promote balanced regional development and enhance efficiency.
Deputy Minister Heo stated in interviews on KTV on September 7 and MBN on September 8 that the merger of port corporations is part of a broader reform of public sector functions. He explained that while the individual port corporations in Busan, Incheon, Ulsan, and Yeosu-Gwangyang would remain physically intact, their policy-making and planning functions would be adjusted to enhance the competitiveness of the port industry.
The unions argue that the port corporation system was established to strengthen autonomy, expertise, and accountability at the regional level. They noted that each port has distinct functions and supporting industries: Busan handles containers and transshipment, Ulsan focuses on liquid cargo and energy, Gwangyang deals with bulk and steel materials, and Incheon serves as a gateway to the capital region and trade with China.
Given these unique characteristics, the unions emphasize the importance of maintaining the independence and accountable management of each port corporation. They warn that concentrating major policy and decision-making functions in a single entity could conflict with the original intent of the system.
The unions also raised concerns about the claimed cost-saving benefits of the merger. Deputy Minister Heo mentioned that while immediate cost reductions may be minimal, the merger is expected to enhance public sector productivity and curb cost increases in the long term. The unions counter that concrete evidence is needed to support these claims.
They referenced a 2011 government study that estimated annual savings of approximately 5 billion won from merging the four port corporations, deeming the impact negligible. The combined budget for the four port corporations in 2026 is projected to be 3.1594 trillion won, with Busan at 1.9032 trillion won, Incheon at 681.6 billion won, Yeosu-Gwangyang at 371.5 billion won, and Ulsan at 203.1 billion won. While the unions acknowledge that past studies cannot be directly compared to the current situation, they insist that new analyses are necessary to substantiate the merger's benefits.
The unions also criticized the merger process itself, pointing out that the Ministry of Finance announced the consolidation plan on September 3 and began a cost-benefit analysis the following day, which they labeled a 'pre-merger verification' approach. They argue that the benefits to the public, costs, and regional impacts should be thoroughly examined before any policy decisions are made.
Concerns were also raised about the future roles of regional port corporations post-merger. The unions contend that if the consolidated headquarters retains key powers over policy-making, development, operations, logistics, and marketing, only execution functions may remain at the regional level. Conversely, they warned that adding a consolidated headquarters while maintaining the existing powers of the port corporations could complicate the decision-making structure.
If cooperation among port corporations is necessary, the unions suggested strengthening existing collaborative frameworks rather than pursuing a merger. They noted that the Port Corporation Act allows for the establishment of an operational council for consultation and coordination among corporations, and there have been instances of collaboration for joint overseas projects.
The unions are calling on the government to publicly disclose analyses of the public benefits and costs of the merger, as well as the regional impacts and mitigation measures for Incheon, Busan, Ulsan, and Yeosu-Gwangyang. They demand a forum for discussions involving labor unions, port corporations, local governments, and experts.
Song Myung-seop, chairman of the National Maritime and Fisheries Labor Union, stated, 'The government must present clear evidence before making expectations. It should transparently disclose the benefits and costs of the merger and its impacts on the regional economy and employment, and facilitate a public hearing for substantive discussions.'
* This article has been translated by AI.
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