Rep. Moon Endorses Hong for 200M-Won KAMA Leadership

A debate has intensified following the disclosure that Rep. Moon Jin-seog from the Democratic Party of Korea sent a message to Kim Nam-kuk, the Digital Communication Secretary at the Presidential Office, suggesting Hong Sung-bum, the former chairman of the Korea Automobile & Mobility Association (KAMA), for the upcoming KAMA presidency. This has sparked inquiries like, “What kind of role is the KAMA presidency that personnel recommendations are being directed to the Presidential Office?”

KAMA, initially known as the Korea Automobile & Mobility Association, renamed itself to the Korea Automobile & Mobility Association in 2023 to better match emerging trends in the automotive sector. Founded in 1988, it advocates for the interests of leading local automakers including Hyundai, Kia, and GM Korea, which are its affiliated companies.

Until roughly ten years ago, the president was usually a high-level executive from Hyundai, Kia, or Daewoo, nominated by member companies. The association’s budget was primarily made up of tens of billions of won provided by these member companies. However, in recent years, the role has mostly been filled by individuals who previously served as first-grade or higher officials in the Ministry of Trade, Industry and Resources. The current annual salary of the KAMA president is reported to exceed 200 million Korean won. However, according to data revealed during a National Assembly audit in 2015, the president’s annual salary, including bonuses, was 324 million Korean won a decade earlier.

Since 2011, this role has become a common position for former senior officials from the Ministry of Trade, Industry and Resources. Former President Kim Yong-geun previously led the Industrial Policy Bureau within the Ministry of Commerce, Industry and Energy. His successor, former President Jeong Man-ki, also assumed the KAMA presidency after retiring as first vice minister of the same ministry. Former President Kang Nam-hoon, whose tenure ended last October, is also a veteran civil servant from the ministry, having held positions such as Economic Policy Secretary in the Blue House and Director of Climate Change and Energy Policy at the ministry, among others.

A source from the automotive sector stated, “It is accurate that the presidency has recently been viewed as a role for former ministry officials,” and added, “Although companies are part of the organization, the environment where they hesitate to take initiative has led the ministry to secure one position for itself.” From the automakers’ point of view, having a president connected to ‘junior colleagues’ from the ministry is not an unfavorable scenario, as the role represents their interests.

Among former senior officials from the ministry, the KAMA presidency is seen as a very attractive role. Although many affiliated groups usually provide vice president positions to individuals who have finished their terms as first-grade directors or vice ministers, KAMA grants the title of president. At present, organizations like the Korea International Trade Association (KITA), Korea Enterprises Federation, and Korea Chamber of Commerce and Industry all have former ministry directors or vice ministers working as full-time vice presidents.

A former senior government official remarked, “It is typical for affiliated groups to have industry representatives as presidents and appoint directors or above as vice presidents responsible for governmental affairs, but KAMA stands out as a ‘desirable role’ because it provides the presidency.”

It is understood that the KAMA president is chosen by the board of member companies based on recommendations. However, due to the content of the so-called ‘Hyunji Nuna’ message disclosed at that time, there are growing concerns within the automotive industry that the government or political groups may have the ability to influence this process.

Previously, Rep. Moon Jin-seog sent a Telegram message to Secretary Kim on the 2nd, saying, “Hong Sung-bum is a junior from Chung-Ang University, worked as a spokesperson during presidential and gubernatorial campaigns, and led the automobile industry association, so he appears suitable for the presidency. Could you suggest him?”

He continued, “You also know Hong Sung-bum. If I suggest him, Director Kang Hoon-sik will object, so please present him as a junior.” Secretary Kim responded, “Yes, senior. I will recommend him to Director Kang Hoon-sik and ‘Hyunji Nuna.'” It is believed that “Hun-sik hyung” refers to Kang Hoon-sik, head of the Office of the President, and “Hyunji nuna” refers to Kim Hyun-ji, the First Deputy Chief of Staff at the Presidential Office.

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