Pusan Port Authority could be reviewed on financial independence

Rep. Kwon Oh-ul of the opposition Grand National Party (GNP) revealed that to introduce the Pusan Port Authority system, it would be prudent to decide on financial self-support, and founders.

During a national assem-bly audit of the Pusan Regional Maritime Affairs and Fisheries, Rep. Kwon pointed out that the main points regarding the management body and handling scope in the discussion of the Port Authority establishment committee have to date brought about sharp conflict between Pusan Regional Maritime Affairs and Fisheries and the city of Pusan.

There were some points of agreement, but the main points of contention were not agreed upon, Rep. Kwon said. He explained that the important thing in introducing the Port Authority System is whether or not this authority could survive, be financially self-sufficient, and who would be the main founder of the PA.

Pusan is a financially independent city, a main factor in establishing the Port Authority, unlike other port cities, and is capable of independently managing it, a Pusan official said. Nationally however, the Pusan New Port development plan would be impossible to accomplish elsewhere, even if Pusan handled the Port Authority and achieved financial independence.

Even though the PA is sticking to independently operating, a private-elected chief would have the power to appoint officials, but would have difficulties in trying to exclude political influences, and would be weak in providing money compared to government-oriented port constructions, giving birth to many financial problems, Rep. Kwon said.

The Port Authority system has already been implemented in developed nations with great success. Howerer, for Pusan, it may just be a case of regional selfishness and not a desire to increase national competitiveness and productivity. On the basis of Pusan self produced project results, complete financial independence would leave the Port Authority under the jurisdiction of the city of Pusan.

To invigorate the Port Authority independently and with low finances, it seems to need government support. According to projected results, support is estimated to be 477.4 billion won from 2001 to 2006.

Without government support, the deficit for the Pusan Port Authority will require a short-term loan amounting to 2,091.9 billion won until 2006.

Meanwhile, the PA will pursue profits, but it cannot be purely motivated by profit in Korean society. To pursue profitability and community together, the government and the city of Pusan will need to work together. Currently it is most practical for the Ministry of Maritime Affairs and Fisheries to establish the Pusan Port Authority and hand over the authority to Pusan if financial independence is fulfilled.