With the end of World War II, it was necessary to create a new government both nationally in South Korea and locally in each town and province. All across the nation many towns set up committees to prepare for the new government and this was true in Jeju as well. In each village and township trusted elders and leaders were naturally selected to represent the town and help make decisions and govern. The overall group (composed of the head of each village) formed the Jeju People's Committee.

The members of the Jeju People's Committee were:

• Hyeon Gyeongho (현경호) - Jeju-eup (제주읍)

• Kim Yonghae (김용해) - Aewol-myeon (애월면)

• Kim Hyeonguk (김국) - Hallim-myeon (한림면)

• Woo Yeongha (우영하) - Daejeong-myeon (대정면)

• Kim Bonggyu (김봉규) - Andeok-myeon (안덕면)

• Kang Gyeil (강계일) - Jungmun-myeon (중문면)

• Oh Yongguk (오용국) - Seogwi-myeon (서귀면)

• Hyeon Junghong (현중홍) - Namwon-myeon (남원면)

• Cho Beomgu (조범구) - Pyoseon-myeon (표선면)

• Hyeon Yeobang (현여방) - Seongsan-myeon (성산면)

• Moon Dobae (문도배) - Gujwa-myeon (구좌면)

• Kim Sibeom (김시범) - Jocheon-myeon (조천면)

While the Jeju People's Committee was not officially recognized by USAMGIK, it did in essence function as the local government in Jeju early on. This is largely because the Jeju People's Committee largely pursued moderate policies and did the work that USAMGIK needed without any issues. So, the two groups managed to peacefully co-exist for a while.

The first major wedge issue between the two was the elevation of Jeju from being a region of South Jeolla Province to being its own province. The reasons listed for the Jeju People's Committee being against the idea are the increase in police officers on the island, the increased taxes, and the need to do more work to secure needed supplies and materials from the mainland. The decision to push through with the idea seems to have originated from rightwing political groups which also did not help things.

The elevation from region to province also saw USAMGIK slowly begin to erode the Jeju People's Committee power and influence over things. USAMGIK had never officially recognized the Jeju People's Committee as a legitimate governing or administrative entity, but they had allowed them to essentially function as one. When Jeju became a province, it came with a need to expand the administrative state in Jeju. These new faces and positions were often people who espoused strong anti-communist views and were often rightwing in terms of political ideology. So as the second half of 1946 and into 1947, the Jeju People's Committee increasingly saw itself on the outside of political decisions made in Jeju.

The relatively amicable relationship between the two ended with the shooting incident at Gwandeokjeong Square on March 1, 1947.