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

Chairman Shin Donggeun Meets with Chairman Kim Kiyeong

The Public Officials' Labor Union Federation under the Federation of Korean Trade Unions (Chairman Shin Donggeun) announced on August 22 that it had visited the Korea Local Government Officials' Mutual Aid Association (Chairman Kim Kiyoung) on the 21st to discuss the government’s Phase 2 plan for relocating public institutions. During the meeting, the union expressed its opposition to including the Mutual Aid Association among the entities subject to relocation.

The Civil Servants' Federation and the Korea Local Government Officials 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 Kiyoung, Chairman of the Korea Local Government Officials Mutual Aid Association; Baek Ilheon, Managing Director. Provided by the Civil Servants' Federation.

Chairman Shin Donggeun stated that while he agreed with the policy objectives of achieving balanced national development and revitalizing regional economies, he opposed applying a blanket relocation standard to the Mutual Aid Association—which is operated with membership contributions and their investment returns—in the same way as typical public institutions that rely primarily on government budgets and funding.

Chairman Shin emphasized, "The real owners of the Mutual Aid Association’s assets are not the government, but the 400,000 members who make valuable monthly contributions." He underscored that the issue of local relocation goes beyond merely changing the location of the institution, as it directly affects the stability and returns of members' assets, as well as the competitiveness of the Mutual Aid Association.

The Mutual Aid Association’s highest decision-making body—the Assembly of Representatives—has already formalized its stance of opposition. The Korea Local Government Officials' Mutual Aid Association Assembly of Representatives adopted a resolution against relocation on May 21, and the Korea Teachers' Credit Union Assembly of Representatives passed a similar resolution on July 31. Combined, the two associations represent approximately 1.4 million members, with about 400,000 in the Local Government Officials' Mutual Aid Association and 1 million in the Teachers' Credit Union.

Changing the main office location of the Mutual Aid Association is considered an amendment to the articles of association and therefore requires approval from the Assembly of Representatives. Even if the government designates the association for relocation, a revision of the articles by the Assembly is necessary for any actual move, making this a critical variable in the relocation process.

The Public Officials' Union Federation also stressed the need to consider the unique characteristics of asset management. As an institutional investor managing large-scale assets, proximity to financial hubs—where financial firms, asset management companies, and specialized professionals are concentrated—is crucial for investment competitiveness. Hence, they argued that both the potential impact on investment returns and the costs of relocation should be thoroughly reviewed, pointing out that these costs would ultimately be covered by member assets.

Chairman Shin Donggeun reiterated, "The Mutual Aid Association belongs not to the government or any specific organization, but to the members who pay their own money in dues every month." He added, "Even though the goal of balanced national development is important, it should not be pursued in a way that sacrifices members’ property rights and the autonomy of the Mutual Aid Association."

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