Controversy over food price cuts at rest areas… Kim Jin-suk, president of the Korea Highway Corporation, resigns

It seems that the Ministry of Land, Infrastructure and Transport has felt a burden recently
The second resignation of the head of the Ministry of Land, Infrastructure and Transport under the new administration

Kim Jin-sook, president of Korea Expressway Corporation, expressed his resignation. After the inauguration of the Yun Seok-yeol government, the resignation of the head of a major public institution appointed by the previous Moon Jae-in government is the second after Kim Hyun-joon, the former president of the Korea Land and Housing Corporation (LH).

According to the Korea Expressway Corporation on the 23rd, President Kim announced his intention to resign from the Ministry of Land, Infrastructure and Transport on the 22nd. Kim’s term of office lasted until April of the following year. This means that he is resigning with 7 months left in his tenure.

President Kim is a former bureaucrat who has served as head of the Multifunctional Administrative City Construction Agency and head of the Seoul Regional Land Management Agency. In 2020, during the previous administration, he became the president of the Korea Highway Corporation.

Recently, the Roads Corporation is under the supervision of the Ministry of Land, Infrastructure and Transport after refusing a request to cut food prices at service stations. This is believed to be the background to Mayor Kim’s resignation as president.

Last month, the Ministry of Land, Infrastructure and Transport proposed to cut food prices in rest areas by 10%. The idea was to give a discount by lowering the commission rate (41%) that the road construction company and service area operators take from food service providers.

However, the Korea Expressway Corporation objected, arguing that it could suffer disadvantages in the management evaluation of public organizations by the Ministry of Strategy and Finance due to poor operating profit. This was because, if the company got a bad score in the management evaluation, the performance pay of the corporation’s employees was also affected.

Accordingly, Minister of Land, Infrastructure and Transport Won Hee-ryong ordered intensive inspections of high-ranking officials of the Korea Highway Corporation right after the Chuseok holiday.

On the 21st, Land, Infrastructure and Transport Minister Won Hee-ryong told his social networking service (SNS) on the 21st, “The Road Corporation openly opposes government reform in order to confirm their vested interests.” He also directly criticized the road construction company, saying, “I ordered a high inspection.”

This is the second time that the head of an agency under the Ministry of Land, Infrastructure and Transport has resigned after the Yun Seok-yeol government was launched. Last month, Kim Hyun-joon, president of Korea Land and Housing Corporation (LH), resigned.

Reporter Lee Hye-in hey@hankyung.com

Leave a Reply

Your email address will not be published.

This site uses Akismet to reduce spam. Learn how your comment data is processed.