Former MDP Local Official to Lead Government-Backed Firm

The newly-appointed head of government-sponsored Yangsan Inland Container Depot resigned only three days after he was elected at the general shareholders` meeting, and he will be replaced by a man related to the ruling Millennium Democratic Party.

The company and shareholders are now raising a question whether the Roh government is behind the latest development, saying if so it is against Roh`s pledge on the off-hand policy.

According to the company and shareholders on March 19, 60-year-old Yang Sung-jik, former director of Wulsan Maritime Agency, was elected as head of Yangsan ICD at a general shareholders` meeting held in Seoul on the 14th. After the decision, he said he `would exert his best effort` to shareholders attending the meeting.

After visiting the Ministry of Maritime(MOM) on March 17, however, he suddenly asked for his resignation citing `personal reasons.` Yang said in a telephone interview on March 19, "I resigned because my failing health. I do not want to cause trouble. I have nothing to say further."

"MOM asked us to consider electing a man related to the ruling party out of courtesy," said a source close to the company. "It is outrageous for the ministry to ask us to elect another person only three days after it recommended Yang."

The company plans to hold a shareholders` meeting on March 24 to elect a new head, but it has been said that a man known as S, who worked for the ruling MDP`s Wulsan headquarters and later as an official at a special committee in MDP, is already arranged to take the top post.

"Despite its repeated pledge that there would be no pulling of strings, it now seems that the Roh government has its voice in this small company," a man identifying himself as a worker at a contractor of Yangsan ICD posted a message on the MOM Web site.

The new head of the company will serve the remainder of the term through July 20 next year.

Yangsan ICD is a temporary storage facility of containers used in Busan Port. The firm was established with contributions by 15 freight service firms such as Korea Container Port Corporation (10.2%), Hanjin Shipping (14.8%), Sebang (10.21%) and Korea Transportation (10.21%).

silent@donga.com