Four Major Port Authorities' Security Subsidiaries to Come "Under One Roof"... Integrated Public Institution Considered

Two Options Under Review: Establishing a Public Institution Through Special Legislation or Joint Investment by Four Port Authorities
487 Petition Police Officers and 511 Special Security Guards... Plan to Address Pay and Employment Status Gaps
Conversion to Petition Police Officers Estimated to Add KRW 10.37 Billion in Annual Costs After 11 Years

The government is considering a plan to consolidate the security subsidiaries of four major ports—Busan, Incheon, Yeosu-Gwangyang and Ulsan—into a single entity. Options under consideration include enacting a special law to establish a separate public institution for port security or creating a company jointly funded by the four port authorities (PAs). The government is also pursuing a plan to unify the employment status of 998 workers, who are currently divided between petition police officers and special security guards.

Special Law Considered to Establish “Public Institution for Port Security”

According to a report by the Ministry of Oceans and Fisheries titled “Research on Measures to Improve Port Security Efficiency,” the report compared and analyzed two options for unifying the port security system: establishing a public institution through special legislation and creating a company jointly funded by the four PAs. The aim is to address uneven security standards and overlapping functions caused by the fragmented allocation of security responsibilities and operating systems across ports.

The four companies targeted for consolidation are Busan Port Security Corporation, Incheon Port Security Corporation, Yeosu Gwangyang Port Management and Ulsan Port Management. As of May 2026, they employed a total of 998 port security personnel: 487 petition police officers and 511 special security guards. Busan employs petition police officers, Yeosu-Gwangyang and Ulsan employ special security guards, and Incheon employs both.

Pay also varies considerably depending on employment status. The average annual salary in Busan, which employs petition police officers, was approximately KRW 62.77 million, while the average salary for special security guards in Incheon, Yeosu-Gwangyang and Ulsan was approximately KRW 44.67 million. This has prompted calls to unify not only the port security system but also employment status and working conditions.

One option under consideration is to enact a special law and establish a separate public institution. The Ministry of Oceans and Fisheries would lead the establishment, and the special law would specify matters needed for the consolidation, including oversight, the succession of assets and employment, and investment. Its advantages include providing a legal basis, strengthening government accountability and enhancing governance stability through the Ministry’s direct involvement. However, the time required to enact the special law would be difficult to predict, and the institution could have less management autonomy because it would be subject to regulations governing public institutions.

The other option is for the four PAs—Busan, Incheon, Yeosu-Gwangyang and Ulsan—to jointly establish a company. If established as a stock company under the Commercial Act, like the existing subsidiaries, the entities could be consolidated relatively quickly without enacting a separate special law, while securing management autonomy. However, this option would require amendments to the Port Authority Act to secure the status needed to employ petition police officers, and the possibility of conflicts of interest among the four shareholders was cited as a limitation.

The report said that consolidating port security under a single public institution could standardize security levels across ports and establish an integrated response system for national emergencies. It also found that reducing duplicated costs could free up funds for large-scale infrastructure investment, including artificial intelligence transformation (AX) and digital transformation (DX), while allowing staffing levels to respond flexibly to the needs of each port.

Converting to Petition Police Officers Would Add KRW 10.37 Billion Annually After 11 Years

Employment status is another issue that must be addressed alongside consolidation. Two options are under consideration for unifying the workforce, currently divided between petition police officers and special security guards: adopting one status or the other. Under the special security guard option, new special security guards would be hired as existing petition police officers in Busan and Incheon retire. Under the petition police officer option, special security guards in Incheon, Yeosu-Gwangyang and Ulsan would all be converted to petition police officers when the consolidation takes place.

Converting workers to petition police officers could unify the organization quickly, but would increase labor costs over the long term. Estimates based on the existing pay scale at Busan Port Security Corporation show that the conversion would incur no additional costs at the outset. However, 11 years later, when workers move into a different pay-grade bracket, annual labor costs would rise by approximately KRW 10.37 billion compared with the current level. The average salary per worker was also estimated to increase by approximately KRW 20 million after 11 years.

Unifying the workforce under the special security guard status would not be straightforward either. The current Petition Police Officers Act prohibits abolishing petition police officer positions or reducing their numbers when special security guards are assigned to replace them. The report concluded that unification under the special security guard status would require guaranteeing the employment status of existing petition police officers in Busan and Incheon, obtaining an authoritative interpretation from the Ministry of Government Legislation on the relevant provisions, and reaching labor-management agreements with petition police officers’ unions.

Contract issues with private operators also remain. A total of 352 port security personnel are currently deployed under consignment contracts with private operators, accounting for approximately 39.5% of the workforce concerned. If all workers were converted to petition police officers, contract costs based on the labor costs of special security guards could rise, creating an additional burden for private operators, the government or the PAs.

The report proposed reviewing a draft special law to establish a public institution for port security and forming a labor-management-government consultative body to develop specific consolidation plans. It said employment status, wages and working conditions, and the integration of subsidiaries should be coordinated through labor-management-government consultations. The parties should also discuss further whether to maintain consignment contracts with existing private operators and what costs would be appropriate.

An official from the Ministry of Oceans and Fisheries said, “We are currently reviewing options including establishing a public institution through a special law and creating a company jointly funded by the four port authorities.” The official added, “A task force for the establishment will commission a separate follow-up study to reach a conclusion on the specific method of consolidation and review the necessary implementation measures as well.” The official said, “A target launch date or specific roadmap for the consolidated institution has not yet been set.”

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