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Dong-Wook SongDong-Wook Song Sung-Woo LeeSung-Woo Lee
University of Hong KongUniversity of Hong Kong Korea Maritime InstituteKorea Maritime Institute
An Assessment ofAn Assessment ofKOREAN PORT GOVERNANCEKOREAN PORT GOVERNANCE
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World Container PortsWorld Container Ports
KOREAKOREA
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Major Korean PortsMajor Korean Ports
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Total 51 PortsTotal 51 Ports
28 International Trading Ports
9 Container ports
2 main container ports (Busan & Gwangyang)
17 General Ports
23 Local Ports Engaged in domestic trading and fishery
Korean PortsKorean Ports
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BusanBusan PortPort
Busan PortBusan New Port
Container Port
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GwangyangGwangyang PortPort
Gwangyang Port
Container Port
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Container Traffic in KoreaContainer Traffic in Korea
Container Cargo Throughputs in 2002
Busan 79.5 %
Others 4.9 %Gwangyang 9.1 %
Incheon 6.5 %
Percentage as of 2003Percentage as of 2003
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Ministry of Maritime Affairs and Fisheries (MOMAF)Ministry of Maritime Affairs and Fisheries (MOMAF)
12 Local Branches of MOMAF controlling 50 ports
BusanBusan became independent in 2003became independent in 2003
Controlled by the Busan Port Authority (BPA)
Independence ofIndependence ofGwangyangGwangyang andand IncheonIncheon underunder
discussiondiscussion Incheon is likely to be independent in 2005
Port Administration in KoreaPort Administration in Korea
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Korean Port Administration in HistoryKorean Port Administration in History
Management and development of Busans container ports Independent Corporation under the Port Authority Law
Current Busan and New container ports
BusanBusan PortPortAuthorityAuthority
(BPA)(BPA)
2003
Port management and development
Central government
Expanded to the Ministry Level (from KMPA to MOMAF)
Ministry ofMinistry of
Maritime of AffairMaritime of Affair
and Fisheriesand Fisheries
(MOMAF)(MOMAF)
1996
Operating and managing container ports in Korea
Under central government
Management and development of container port for KMPA
Korea ContainerKorea Container
Terminal AuthorityTerminal Authority
(KCTA)(KCTA)
1989
Renamed from Korea Port Authority in 1977
Under central government
Port management and development
Korea Maritime andKorea Maritime and
Port AdministrationPort Administration
(KMPA)(KMPA)
1976
Main ContentMain ContentOrganisationOrganisationYearYear
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Port Administration in KoreaPort Administration in Korea (except Busan)(except Busan)
MOMAFMOMAF
Real owner of container terminal and facilities
Local KMPAsLocal KMPAs
Regulator of container terminals
Management of general ports
Lessor of container terminals
Port Policy Committee & Board
KCTAKCTA
Corporation without capital Lessor of container terminals Container terminal development
Ulsan Port (Ulsan Container Terminal, Dongbang)
Pyengtaek Port (Pyengtaek Port Co.)
Other Ports (Small and medium size private companies)
Gwangyang Port- 1 Phase: Hanjin, Shebang,
Korea Express, Hutchison
- 2 Phase: KIT, Dongbu
Operated and Managed by Private companiesOperated and Managed by Private companies
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Port Administration in BusanPort Administration in Busan (before 2003)(before 2003)
MOMAFMOMAF
Real owner of container terminal and facilities
Busan KMPABusan KMPA Regulator of container terminal in Busan
Management of general ports in Busan
Port Policy Committee & Board
KCTAKCTA Corporation without capital Lessor of container terminals
Jasungdea container terminal (Hutchison)
Shinseondae container terminal (PECT- Private Limited Company)
Gamman container terminal (Global/Shebang, Hanjin, Korea Express, Hutchison) New-Gamman container terminal (DPCT - Private Limited Company)
Uam container terminal (UTC - Private Limited Company)
Gamchun container terminal (Hanjin)
Operated and Managed by Private companiesOperated and Managed by Private companies
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Port Administration in BusanPort Administration in Busan (after 2003)(after 2003)
Port Policy Committee & Board
BPABPA
Corporation with capital
Real owner of container terminal and facilities
Lessor of container terminals
Jasungdea container terminal (Hutchison)
Shinseondae container terminal (PECT- Private Limited Company) Gamman container terminal (Global, Hanjin, Korea Express, Hutchison)
New-Gamman container terminal (DPCT - Private Limited Company)
Uam container terminal (UTC - Private Limited Company)
Gamchun container terminal (Hanjin)
Operated and Managed by Private companiesOperated and Managed by Private companies
MOMAFMOMAF
Regulator of overall container terminal
Management of general ports
Busan KMPABusan KMPA
Regulator of container terminals in Busan
Management of general ports in Busan
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Korea Container Terminal Authority (KCTA)Korea Container Terminal Authority (KCTA)
Established in 1990
Aims to enhance the national economy through
efficient development, management and operations
of container terminals
Coverage: 12 terminals in 5 ports
From 2004, according to the Port Authority Law,
KCTA turned Busan over to BPA.
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Busan Port Authority (BPA)Busan Port Authority (BPA)
Established in 2003 under the Port Authority Law and
commenced in 2004
Aims to apply private spirit to port management and
development in Busan
Coverage: the existing container terminals and future
ones in Busan
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Port Administration &Port Administration & OwnershipOwnershipA Conceptual Model
Port Models
Port Functions
Regulator Landowner Operator
PUBLIC Public Public Public
PUBLIC /private Public Public Private
PRIVATE /public Public Private Private
PRIVATE Private Private Private
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Port Administration &Port Administration & OwnershipOwnershipThe Case of Busan Port
Port Models
Port Functions
Regulator Landowner Operator
PUBLIC Public Public Public
PUBLIC /private Public Public Private
PRIVATE /publicPublic Private Private
PRIVATE Private Private Private
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Port Administration &Port Administration & OwnershipOwnership
The Case of Gwangyang Port
Port Models
Port Functions
Regulator Landowner Operator
PUBLIC Public Public Public
PUBLIC /private Public Public Private
PRIVATE /public Public Private Private
PRIVATE Private Private Private
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ConclusionConclusion
Private business mind is in place at Korean port
sector.
Korea has tried to attract overseas investors but
achieved only limited success.
Mixed private and public hands are existed; thus,
inevitably creating a co-ordination problem.
At the same time, the public side becomes more
complex; is it a way to make the port efficient or
inefficient due to the unnecessary bureaucracy?
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