Ahead of the New Government... Public Institutions Nervous About June Management Evaluations

[Image source=Yonhap News]

Mr. A, who works at a power generation public enterprise under Korea Electric Power Corporation (KEPCO), has recently been working overtime frequently to prepare for the on-site inspection of the public institution management evaluation. This is because the deadline for submitting materials requested by the management evaluation committee, as a cooperating department, is tight. If the materials are not submitted within the period, the department may face point deductions.

Mr. B, who works at another power generation public enterprise, hinted that there is talk that "it will be difficult for KEPCO, Korea Hydro & Nuclear Power, and other public power companies to receive an A grade in this management evaluation." He said, "Ahead of the new government's inauguration, the final management evaluation process of the previous government feels tougher than usual, and there is a widespread atmosphere that receiving a B grade alone would be considered a 'good performance.'"

According to government-affiliated agencies on the 20th, the 'Public Institution Management Evaluation' targeting a total of 130 public enterprises and quasi-governmental institutions, which began last month, is nearing its final stage, and major institutions are on high alert ahead of this year's evaluation results. This is because, depending on the evaluation results, employees' performance bonuses as well as potential disadvantages such as restructuring may occur immediately after the new government’s first evaluation is disclosed.

The public institution evaluation system was established to objectively assess the management efforts and performance of public enterprises and quasi-governmental institutions annually, aiming to establish responsible management. The results are classified into grades S, A, B, C, and D, and the Ministry of Economy and Finance forms an evaluation team composed of experts to conduct the evaluation.

In fact, KEPCO has been preparing for this year's evaluation since the beginning of the year, centered on the 'Evaluation Office,' the control tower department responsible for this, working with cooperating departments to prepare reports and online inspections. Inside KEPCO, considering last year's record of the largest deficit ever, it is known that they focused on supplementing financial management as much as possible and on performance areas such as work efficiency and COVID-19 response efforts.

Korea Hydro & Nuclear Power, which received an A grade for two consecutive years, is conducting on-site inspections until today. With the new government's policy to abolish nuclear phase-out, aiming for a third consecutive A grade due to the increased share of nuclear power, the comprehensive prosecution raids over allegations of manipulation of the economic evaluation of Wolseong Unit 1 are considered a variable.

The atmosphere of on-site inspections at power generation public enterprises under KEPCO is even more intense. This is because there are concerns that this management evaluation could be used as a basis for the consolidation and merger of public power companies, as the new government is considering restructuring the power industry for carbon neutrality. In fact, the government has consistently mentioned plans to completely stop coal power generation by 2050 according to the carbon neutrality vision, and to withdraw aging power generators and consolidate public power companies to achieve this.

Some power generation public enterprises have even rented nearby resorts for training camps to prepare for this year's management evaluation for this reason. Regardless of how good the performance evaluation is, they formed task forces with cooperating departments to offset expected point deductions in major indicators such as safety accidents. A power company official said, "It is common for the relevant departments to take turns staying up all night to prepare the materials requested by the evaluation committee," adding, "Since the results will be disclosed immediately after the new government’s inauguration, we have prepared more thoroughly than any other year."

A professor participating as an evaluation committee member this year said, "Those being evaluated may feel psychological pressure ahead of the new government's inauguration, but the procedures are being conducted fairly according to objective evaluation detailed lists."

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