32 Local Public Enterprises with Excellent Business Performance Selected, Including Gwangju Urban Railway and Busan Urban Corporation

Ministry of the Interior and Safety Announces Local Public Enterprises with Excellent Management Performance Last Year

[Asia Economy Reporter Lim Cheol-young] Despite the challenging business environment caused by COVID-19 last year, 32 local public enterprises that discovered new growth engines, contributed to their communities, and achieved excellent results were announced.

On the 5th, the Ministry of the Interior and Safety announced the results of the management evaluation for 2020 performance conducted on local public enterprises nationwide after deliberation by the 'Local Public Enterprise Policy Committee.'

The evaluation targeted 272 institutions (67 public corporations, 83 public agencies, 122 waterworks), using more than 20 detailed indicators across three areas: sustainable management, business performance, and social value. Notably, COVID-19 response indicators were introduced to assess local public enterprises' efforts to overcome the COVID-19 crisis.

As a result of the evaluation of local public enterprises, the sustainable management area, including financial management, slightly declined from 85.45 points to 85.26 points due to the impact of COVID-19, but the social value area, including job creation and disaster safety, rose from 84.78 to 85.71 points. This is analyzed as a reflection of local public enterprises' proactive efforts to overcome the COVID-19 crisis, such as supporting the recovery of local small business damages and expanding local consumption and investment, despite the worsening business conditions caused by COVID-19.

By grade, there were 32 institutions (11.8%) rated 'Ga' grade, 68 (25.0%) 'Na' grade, 140 (51.5%) 'Da' grade, 24 (8.8%) 'Ra' grade, and 8 (2.9%) 'Ma' grade institutions.

The 32 institutions awarded the top 'Ga' grade in this management evaluation include Gwangju Urban Railway Corporation, Busan Urban Corporation, Seoul Agricultural and Marine Products Corporation, Incheon Tourism Organization, Donghae City Facilities Management Corporation, among others, accounting for 11.8% of the total. Of these, 24 institutions were evaluated by the Ministry of the Interior and Safety, and 8 were evaluated by provincial governments.

According to this management evaluation result, evaluation bonuses for executives and employees of local public corporations and agencies will be paid differentially. Employees of institutions receiving the lowest grade will not receive evaluation bonuses, and the salaries of institution heads and executives will be cut by 5-10% in the following year.

Additionally, the Ministry of the Interior and Safety plans to select six institutions with low evaluations for management diagnosis. After conducting the management diagnosis, improvements will be encouraged based on the results, such as enhancing management efficiency, establishing sustainable management strategies, and introducing organizational personnel management systems.

The results of this management evaluation will be fully disclosed on the Local Public Enterprise Management Information Disclosure System, and, as in the previous year, the evaluation results by major categories will be announced in November in the form of a scorecard.

Going forward, the Ministry of the Interior and Safety plans to continuously manage the history of each institution and strengthen information disclosure to solidify the substance of local public enterprises. Vice Minister Ko Gyu-chang said, "In crisis situations like COVID-19, local public enterprises play a more important role than ever in residents' lives and regional vitality," adding, "We will enhance the management efficiency and community contribution of local public enterprises through continuous management and customized consulting."

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