Park Jae-hyuk is a seasoned journalist who has provided comprehensive coverage of South Korea's corporate dynamics, economic policies, industry challenges and the global positioning of Korean companies. Based on the articles he has written since joining The Korea Times in 2016, his investigative approach has helped readers understand corporate governance, economic trends and business strategies shaping South Korea’s economy.
Macquarie Korea braces for tussles with authorities
Macquarie Korea Infrastructure Fund supervisory director Kim Dae-ki
By Park Jae-hyuk
By Park Jae-hyuk
Macquarie Korea Infrastructure Fund (MKIF), which has been mired in multiple lawsuits with the central and local governments here, has appointed a former government official as its new supervisory director in an apparent attempt to brace for possible disputes with the authorities in the future.
Given that the fund management company specializing in investments in social overhead capital needs to continue to work with the authorities, it appears to have reinforced the lineup of its board of directors to avoid earnings declines caused by legal battles.
According to the prospectus of MKIF, Friday, former Hanwha Life Insurance adviser Kim Dae-ki joined the firm in late July as a new supervisory director.
Kim, who became a civil servant in 1978, has worked for both progressive and conservative administrations.
He served as Statistics Korea commissioner and chief presidential secretary for policy during the Lee Myung-bak administration, while working as presidential secretary for economic affairs during the Roh Moo-hyun administration.
He was also the head of the National Budget Office at the Ministry of Planning and Budget and an economist at the World Bank.
The two other MKIF supervisory directors ― Lee & Ko partner Jung Woo-young and Seoul National University Law School professor Kim Hwa-jin ― were not government officials.
The appointment of the new director coincided with the final phase of MKIF's lawsuits against the Busan Metropolitan Government and the Ministry of Land, Infrastructure and Transport, both of which ended in victories for the company.
In June, MKIF won its four-year lawsuit against Busan over the city government's refusal to offer financial support to the Baekyang Tunnel which the company manages.
The investment firm also defeated the land ministry in the same month in an international arbitration over compensation for decreased traffic on Incheon Bridge.
Although the ministry declined to cover the entire loss that the company suffered due to the construction of the Third Landing Bridge in Incheon, the International Chamber of Commerce ruled against the ministry, saying its claim went against a previous agreement with MKIF.
However, the revised Toll Road Act still unnerves MKIF, as the new law allows authorities to lower tolls beyond an agreed amount.
“The authorities have begun to exercise their limited rights of supervision and instruction more extensively at their discretion,” the company said in its prospectus. “The revised Toll Road Act has also strengthened the power of the authorities.”
In this regard, the new supervisory director is expected to shield MKIF from the authorities, using his experience and personal networks in the public sector.