Bureaucrats rush to join private firms for higher salary

An overview of Government Complex Sejong / Yonhap

An increasing number of bureaucrats are finding jobs at private companies that want to capitalize on their expertise and proficiency to cope with fast-changing industry landscapes, according to government and company officials on Thursday.

These public officials are widely spread across the central government, including the Ministry of Economy and Finance, the Ministry of Trade Industry and Energy, the Ministry of Employment and Labor, Fair Trade Commission (FTC) and Financial Services Commission (FSC).

They are mainly mid- and senior-level officials, who reportedly sought a higher salary. They are said to be unsatisfied with their relatively lower earnings compared to their peers in the private sector, despite working overtime frequently.

They have been quick to take job offers from top-tier companies that promise substantially higher compensation.

The most recent case was a Grade 4 official from the Ministry of Economy and Finance, who retired in June after e-commerce giant Coupang offered him a high-ranking position.

Civil service in Korea has a nine-grade structure, with Grade 1 being the highest and Grade 9 the lowest.

Many of those in Grade 5 or upper levels built careers after passing a rigorous civil service entrance exam, which is highly recognized even outside the public sector.

“I heard the recruitment process for this official is at the final stage,” a ministry official said on condition of anonymity.

He explained that the Ministry of Personnel Management’s ethics committee carried out a review of the Coupang job candidate to determine whether regulations on civil servants would allow him to take a job in the private sector.

“The finance ministry does not have a direct regulatory relationship with Coupang, so the change in profession is not believed to be problematic,” the ministry official said.

In addition, the ethics committee thoroughly screened two FTC officials who were recruited by Coupang earlier this year. The company hired a Grade 5 official as a senior managing director and a Grade 4 official as an executive vice president, according to the industry officials.

The screening was rigorous, as the FTC has dealt with Coupang over several issues regarding fair business practices, and the potential for the two FTC officials’ move to the company risked controversy if the appropriate procedures weren't followed.

“It appears that Coupang is recruiting multiple bureaucrats for efficient communication with the liberal Lee Jae Myung administration,” said Shin Se-don, honorary professor of economics at Sookmyung Women's University.

The professor highlighted a Grade 3 official from the Ministry of Trade, Industry and Energy, and eight lower-graded Ministry of Employment and Labor officials who also joined Coupang.

According to the securities industry, several FSC officials also joined brokerage houses as outside directors or board members.