Lee Sang-jo, president of the Korea Container Terminal Authority, has been selected as new chief of the Yeosu-Gwangyang Port Authority, the government said Sunday.

The Ministry of Finance and the Ministry of Land, Transport and Maritime Affairs reviewed three applicants for the post and picked Lee, the ministries said.

Scheduled to launch Friday, the YGPA is a new agency that will take over the KCTA and part of duties from the Yeosu Regional Maritime Affairs & Port Office.

Lee, 72, will oversee seaport management and logistics affairs for Yeosu and Gwangyang, the country’s southern harbors.

He served South Gyeongsang Province as a council member and Miryang City in the province as a three-time mayor. Prior to the KCTA, he also worked at Hankuk Fiber, a Miryang-based textile company, as a vice president.

A steering committee at the maritime affairs ministry expects the YGPA to help boost slowing logistics at the ports and promote the Yeosu Expo, which will kick off May 12 to run for three months.

But Yeosu residents and officials have criticized the plan since 2009, saying the new establishment is being used as an expedient to transfer nearly 1.5 trillion won ($1.4 billion) of debt from the KCTA.

In response, the ministry said it plans to reimburse 280 billion won by 2017 and secure another 230 billion won by selling off five affiliates. The remaining 480 billion won would be paid off by 2023 as the YGPA becomes more profitable.

By Shin Hyon-hee (heeshin@heraldcorp.com)