Even with a 'C' Management Evaluation, Executive Salaries Increase... Why Are Public Institutions Drowning in Debt?

Debt of 39 Public Institutions under the Ministry of Industry Reaches 198.3 Trillion Won in 2020... Increased by 16.5 Trillion Won in 2 Years
Despite Deteriorating Financial Structure, Executive Salaries Raised by an Average of 15 Million Won

[Sejong=Asia Economy Reporter Kwon Haeyoung] Public institutions under the Ministry of Trade, Industry and Energy have raised the annual salaries of their executives and employees every year despite deteriorating financial structures. In particular, public institutions that received a C grade in management evaluations have also joined the ranks of executive salary increases, drawing criticism.

According to data submitted by the Ministry of Trade, Industry and Energy to the office of Kwon Myungho, a member of the People Power Party, on the 8th, the total debt of 39 public institutions under the ministry increased by about 16.5 trillion KRW over two years, from 181.7768 trillion KRW in 2018 to 198.3077 trillion KRW in 2020.

By institution, Korea Electric Power Corporation (KEPCO) saw its debt grow from 53.4046 trillion KRW to 59.772 trillion KRW, an increase of about 6.3 trillion KRW, and Korea Hydro & Nuclear Power (KHNP) increased by more than 5 trillion KRW, from 30.653 trillion KRW to 36.0784 trillion KRW. Korea National Oil Corporation and Korea Resources Corporation also saw their debts rise by about 1 trillion KRW each, from 17.4749 trillion KRW to 18.6449 trillion KRW, and from 5.9241 trillion KRW to 6.7535 trillion KRW, respectively.

Due to government pressure to create youth jobs, regular employment increased, expanding labor costs. The number of regular employees at the 39 public institutions rose continuously from 81,929 in 2018 to 84,883 in 2019, and 86,609 in 2020. The total labor cost burden also grew by more than 700 billion KRW, from 6.3773 trillion KRW in 2018 to 7.1007 trillion KRW last year.

Despite the worsening financial conditions, the average annual salary of executives at these 39 public institutions increased by more than 15 million KRW, from 156.84 million KRW in 2018 to 172.52 million KRW in 2020. The average employee salary also rose from 76.44 million KRW to 78.31 million KRW.

As of last year, the average executive salary by institution was 207.13 million KRW at KEPCO, up about 7 million KRW from the previous year, and 208.89 million KRW at KHNP, increasing by nearly 30 million KRW. Korea National Oil Corporation and Korea Resources Corporation recorded 154.35 million KRW and 135.10 million KRW, respectively, each rising by about 40 million KRW and 27 million KRW compared to the previous year. These two institutions received a C grade in the 2019 management evaluation.

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