Government Employees' Union: "No Mutual Aid Association Relocation Without Members' Consent"

Chairman Shin Donggeun Meets with Chairman Kim Kiyeong

The Federation of Government Employees' Unions under the Korean Federation of Trade Unions (Chairman: Shin Donggeun) announced on August 22 that it visited the Korea Local Government Officials Mutual Aid Association (Chairman: Kim Kiyeong) on the 21st for a meeting and voiced its opposition to including the association as a target in the government's second round of local relocation of public institutions.

The Public Officials Federation and the Korea Local Government Mutual Aid Association are taking a commemorative photo after discussions related to local relocation. From the left, Park Unpyeong, Secretary-General; Shin Donggeun, Chairman; Kim Ki-young, Director of the Korea Local Government Mutual Aid Association; and Baek Ilheon, Managing Director. Provided by the Public Officials Federation.

Chairman Shin Donggeun stated that while he agrees with the policy intentions of balanced national development and revitalization of local economies, the Mutual Aid Association—which is operated through members' contributions and the proceeds from their management—should not be subject to uniform relocation based on the same standards as typical public institutions funded by government budgets or subsidies.

Chairman Shin emphasized, "The true owners of the association's assets are not the government but the 400,000 members who diligently pay their dues every month." He stressed that the issue of local relocation goes beyond simply changing the location of the institution; it is directly connected to the stability and returns of members' assets, as well as the association’s competitiveness.

The association's highest decision-making body, the Delegates Council, has already made its opposition official. The Korea Local Government Officials Mutual Aid Association’s Delegates Council adopted a resolution opposing local relocation on May 21, while the Korea Teachers’ Credit Union Delegates Council adopted a similar resolution on July 31. Combined, the Local Government Officials Mutual Aid Association has approximately 400,000 members, and the Teachers’ Credit Union has around 1 million, amounting to roughly 1.4 million members in total.

Relocating the association’s headquarters requires a revision of the articles of incorporation, which must be approved by the Delegates Council. Even if the government designates the association for relocation, an actual move would still require an amendment to the articles of incorporation by the Delegates Council—making this an important variable in any relocation efforts.

The Federation of Government Employees' Unions also urged consideration of the unique aspects of asset management. As an institutional investor managing large-scale assets, proximity to financial hubs—where financial companies, asset managers, and experts are concentrated—is critical to investment competitiveness. Therefore, the potential impact on investment returns and the costs involved in relocating must be thoroughly reviewed, as these costs would ultimately be borne by members’ assets.

Chairman Shin Donggeun stated, “The owner of the Mutual Aid Association is not the government or any specific institution, but the members who contribute their own money each month. Even if national balanced development is important, it should not come at the cost of members' property rights or the association's autonomy.”

This content was produced with the assistance of AI translation services.