Public Institution Management Evaluation Begins... Safety Indicator Scores '0' in Case of Major Accidents

[Asia Economy Sejong=Reporter Kwon Haeyoung] The government will strengthen the ethics and safety evaluation indicators starting from this year's public institution management evaluation and enhance the verification system to prevent evaluation errors. The upper limit of the performance bonus payment rate for public enterprise presidents will also be lowered from the previous 120% to 100%.

On the 3rd, the Ministry of Economy and Finance held a Public Institution Management Committee chaired by Second Vice Minister Ando Geol and finalized the 2021 public institution management performance evaluation implementation plan containing these details.

First, from this evaluation onward, the evaluation of ethical management and disaster and safety management fields will be strengthened. The score allocation for the ethical management indicator will be expanded from the existing 3 points to 5 points, and if a serious violation of fundamental social responsibilities or illegal acts occur, the ethical management indicator will be scored as 0 points. Additionally, the evaluation results of public institution safety management grades will be reflected, and if a major accident occurs, the disaster and safety management indicator will be scored as 0 points.

Furthermore, to prevent large-scale evaluation errors like those last year, the Korea Institute of Public Finance’s Public Institution Research Center will take charge of managing and verifying the entire evaluation process. To this end, the Korea Institute of Public Finance has expanded and reorganized the Public Institution Research Center into a comprehensive support organization for public institution policy evaluation. Starting with new public institutions such as the Seomin Geumyung Jinheungwon and the Korea Mining Reclamation Corporation, customized consulting according to the institution's life cycle will also be provided from this year.

Separate from the management evaluation team, an evaluation verification team and an evaluation verification committee will also be operated. Before announcing the evaluation results, the results will be shared with the target institutions and objections will be accepted.

Moreover, the upper limit of the performance bonus payment rate for public enterprise heads will be lowered from the existing 120% to 100%. For quasi-governmental institution heads, a mid-term performance bonus system will be applied. The mid-term performance bonus system is a method of paying the institution head’s performance bonus in installments over three years linked to management performance. If the management evaluation grade rises or falls compared to the previous year, the performance bonus for the 2nd and 3rd years will be increased or decreased accordingly.

The government completed the composition of the public institution management evaluation team in February and plans to finalize the evaluation through the resolution of the Public Institution Management Committee by June 20 after conducting written evaluations and on-site inspections of institutions in March and April.

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