North Korean Defector Policy Shake-up: Will Administrative Affairs Take Over from Unification Ministry?

Major Policy Shift in the Making

The Lee Jae-myung administration is seriously considering a significant organizational restructuring that could fundamentally change how South Korea manages North Korean defector affairs. According to government sources, the National Policy Planning Committee and the Ministry of Unification are actively reviewing a plan to transfer approximately 20 personnel responsible for North Korean defector community settlement support from the Ministry of Unification headquarters to the Ministry of Interior and Safety.

This potential change represents a revival of a controversial dual-system approach that was previously considered during the Moon Jae-in administration but ultimately abandoned due to inter-ministerial disagreements. The current proposal would see the Ministry of Interior and Safety become the primary agency responsible for defector policies, while the Ministry of Unification would transition to a supporting role.

However, the North Korean Refugees Foundation (Hanawon), which serves as the initial residential education facility for newly arrived defectors with approximately 90 staff members, would remain under the Ministry of Unification's jurisdiction. This creates an interesting division of labor where initial processing stays with unification affairs while long-term settlement support moves to administrative affairs.

Historical Context and Previous Attempts

This isn't the first time such a reorganization has been proposed. In 2020, then-Unification Minister Kim Yeon-chul explored a similar dual-system approach for managing defector affairs. However, those discussions broke down when the Ministry of Interior and Safety objected to taking on additional responsibilities and budget burdens without proportional organizational expansion. The ministry argued that if they were to assume primary responsibility for defector policies, they should receive all related functions, including Hanawon itself.

The historical precedent shows the complexity of inter-ministerial negotiations in South Korean government restructuring. Government sources indicate that the current National Policy Planning Committee's Foreign Affairs and Security Division, along with Unification Minister nominee Jung Dong-young, are pushing forward with the policy-only transfer approach. This suggests they may face similar resistance from the Ministry of Interior and Safety that derailed previous attempts.

The timing of this proposal is particularly significant as it comes during a transition period in South Korean politics, with the new administration seeking to establish its own approach to North Korean affairs and defector integration policies.

Jung Dong-young's Vision for Defector Policy

Unification Minister nominee Jung Dong-young has been vocal about his views on defector policy management during his recent parliamentary confirmation hearings. On July 14, 2025, during questioning by Democratic Party legislator Han Jung-ae, Jung stated that the Ministry of Interior and Safety and the Ministry of Health and Welfare, which have extensive local administrative networks, would be more appropriate primary agencies for defector protection, support, and safety issues than the Ministry of Unification.

Jung's perspective reflects a practical approach to governance, recognizing that successful defector integration requires extensive local-level administrative support that the Ministry of Unification may not be equipped to provide. His comments suggest that the Ministry of Unification should focus on its core mission of inter-Korean relations and unification preparation, while leaving day-to-day settlement support to ministries with broader domestic administrative capabilities.

This philosophical shift represents a significant departure from previous approaches where the Ministry of Unification maintained comprehensive control over all aspects of defector affairs. Jung's vision appears to prioritize administrative efficiency and local-level support over centralized control under a single ministry.

Budget and Organizational Implications

The financial stakes of this reorganization are substantial. Currently, defector settlement support accounts for approximately 80 billion won out of the Ministry of Unification's total general account project budget of 167 billion won – nearly half of the ministry's entire budget allocation. This massive budget transfer would significantly impact both ministries' operational capacity and strategic focus.

For the Ministry of Unification, losing such a large portion of its budget and related personnel could lead to concerns about the ministry's overall relevance and institutional survival. Government sources suggest that even if the ministry recovers the 81 personnel positions cut during the Yoon Seok-yeol administration's 2023 organizational restructuring, the total organizational size could still shrink compared to current levels if defector affairs are transferred.

The Ministry of Interior and Safety, meanwhile, would need to rapidly build institutional capacity to handle defector integration programs, community support services, and coordination with local governments. This transition period could potentially disrupt ongoing support services for the thousands of North Korean defectors currently residing in South Korea.

Broader Organizational Restructuring Plans

The defector policy transfer is just one component of a broader organizational restructuring planned for the Ministry of Unification under the new administration. Government sources indicate that several other significant changes are being considered to reverse policies implemented during the previous Yoon Seok-yeol administration.

The Inter-Korean Exchange and Cooperation departments that were consolidated during the previous administration are expected to be restored to their original structure. The Human Rights and Humanitarian Affairs Office, which focused on publicizing North Korean human rights issues under the previous government, is being considered for downsizing to a bureau-level organization. Conversely, the North Korean Abductee Response Team, established as a direct reporting unit under the Unification Minister during the Yoon administration, is expected to be upgraded to a division-level organization.

These changes reflect the new administration's different approach to inter-Korean relations, emphasizing dialogue and cooperation over confrontation and human rights criticism. The organizational restructuring serves as both a practical administrative adjustment and a symbolic statement about policy priorities.

Community and Expert Reactions

The proposed changes have generated mixed reactions from various stakeholders in the defector community and policy experts. Some former and current Ministry of Unification officials have expressed concerns about fragmenting defector support services across multiple ministries, arguing that unified management ensures better coordination and consistency in policy implementation.

Critics worry that transferring defector affairs to the Ministry of Interior and Safety could lead to these issues being treated as routine administrative matters rather than the specialized integration challenges they represent. Supporters, however, argue that local-level administrative capacity is exactly what defector integration needs, pointing to successful examples in other countries where immigration and integration services are handled by interior or administrative affairs ministries.

The defector community itself appears divided on the issue, with some welcoming the potential for more comprehensive local-level support while others expressing concern about losing the specialized attention that comes with Ministry of Unification oversight. Online discussions on major Korean community platforms show a range of opinions, from skepticism about bureaucratic efficiency to hope for improved service delivery.

Implications for Inter-Korean Relations

This organizational restructuring occurs against the backdrop of continued tensions in inter-Korean relations and North Korea's increasingly hostile stance toward South Korea. The potential transfer of defector affairs away from the Ministry of Unification raises questions about how this might affect South Korea's broader approach to North Korean issues and eventual unification preparation.

Some analysts argue that removing day-to-day defector support from the Ministry of Unification could actually strengthen the ministry's focus on its core diplomatic and policy functions. By concentrating on inter-Korean dialogue, cooperation frameworks, and long-term unification planning, the ministry might be better positioned to respond to future opportunities for engagement with North Korea.

However, critics contend that defector integration serves as valuable preparation for eventual unification, providing practical experience in helping North Koreans adapt to South Korean society. From this perspective, transferring these functions away from the unification ministry could weaken institutional knowledge and preparation for larger-scale integration challenges that would accompany any future unification scenario. The debate reflects broader questions about whether South Korea should treat North Korean defectors primarily as a current administrative challenge or as a preview of future unification dynamics.