[2020 National Audit] "KEPCO's Debt Increases by 7.5 Trillion Won... Number of Employees with Billion-Won Salaries Rises"

Ministry of Industry Affiliates See 22.9 Trillion Won Debt Increase Over 2 Years, 3,220 High Earners Added
Lee Joo-hwan: Growing High Salaries Amid Financial Concerns Reflects Reckless Management... Considering Institution Penalties

[Asia Economy Reporter Moon Chaeseok] Despite the rapid increase in debt among public institutions under the Ministry of Trade, Industry and Energy, including Korea Electric Power Corporation (KEPCO), the number of employees receiving annual salaries exceeding 100 million KRW continues to rise.

According to data submitted by the Ministry of Trade, Industry and Energy to Lee Juhwan, a member of the National Assembly's Industry, Trade, and Small and Medium Enterprises Committee from the People Power Party, the number of executives and employees earning over 100 million KRW annually at 40 public institutions under the ministry increased from 9,698 in 2017 to 12,918 last year.

Korea Western Power had the highest proportion of employees earning over 100 million KRW relative to its total workforce as of last year. Among 2,509 employees, 844 (33.6%) were high earners.

While Western Power's debt increased by 898 billion KRW compared to 2017, the number of employees earning over 100 million KRW decreased by 52.

Following were Korea Southern Power with 32.8% (704 out of 2,145 employees), Korea Trade Insurance Corporation with 32.6% (235 out of 720 employees), and Korea Power Exchange with 29.2% (143 out of 491 employees).

On the other hand, eight institutions saw a decrease in the number of employees earning over 100 million KRW compared to 2017, including Western Power (52 fewer), Korea Mine Reclamation Corporation, Korea Radioactive Waste Agency (5 fewer), and Korea Petroleum Management Service (3 fewer).

The financial structure of these public institutions is deteriorating, with operating profits declining and debt levels increasing.

The debt of the 40 public institutions rose from 172.8807 trillion KRW in 2017 to 195.8593 trillion KRW in 2019, an increase of 13.3 trillion KRW over two years.

KEPCO's debt increased by 7.5929 trillion KRW compared to 2017, but the number of employees earning over 100 million KRW increased by 828 during the same period. Korea Hydro & Nuclear Power also saw its debt rise by 4.6312 trillion KRW over two years, while the number of high earners increased by 638.

Rep. Lee emphasized, "In a situation where fiscal soundness is seriously concerning and austerity measures should be implemented, the increase in employees receiving high salaries is an example of reckless management," adding, "Penalties should be considered for institutions that fail to improve despite repeated annual criticisms."

This content was produced with the assistance of AI translation services.