"The Public Institution Party Is Over" Chu Kyung-ho Delivers Consecutive Bold Statements... Announces High-Intensity Restructuring

The day before: "Why has KEPCO been like this for the past 5 years?" remarks
Public sector reform efforts intensify with TF establishment... Possibility of replacing public institution heads appointed by Moon administration's 'entrenched personnel'

Deputy Prime Minister and Minister of Economy and Finance Choo Kyung-ho is delivering opening remarks at the 1st Real Estate Related Ministers' Meeting held at the Government Seoul Office in Jongno-gu, Seoul on the 21st. Photo by Hyunmin Kim kimhyun81@

[Asia Economy Sejong=Reporter Kwon Haeyoung] Deputy Prime Minister and Minister of Economy and Finance Choo Kyung-ho announced that "the public institution party is over," signaling a high-intensity innovation drive for public institutions. Amid President Yoon Suk-yeol's order for restructuring public institutions, the government's reform efforts in the public sector to reduce massive debt and workforce while improving management efficiency are expected to gain momentum.

According to the government on the 21st, Deputy Prime Minister Choo reportedly said at the Cabinet meeting that "the public institution party is over" after reporting on the lax management performance and status of public institutions.

Regarding criticism that Korea Electric Power Corporation's (KEPCO) corporate bond issuance limit was fully utilized, Choo made pointed remarks such as, "KEPCO itself needs to reflect on why it has ended up like this over the past five years." When asked about the postponement of the upcoming third-quarter electricity rate hike decision scheduled for the 21st, he said, "There are both management issues at KEPCO and recent sharp increases in costs," adding, "There are insufficient parts in KEPCO's self-rescue plan, so further consultations among the Ministry of Trade, Industry and Energy, our Ministry of Economy and Finance, and KEPCO are necessary."

Earlier, at a press briefing held in April when he was still a nominee, Choo criticized, "When determining prices in the public sector, (public institutions) must seriously consider whether they have made proper efforts to stabilize public utility rates," and pointed out, "They should not irresponsibly operate wastefully and accumulate other price increase factors, then raise rates when the time comes."

The reason Deputy Prime Minister Choo has been intensifying his remarks day after day and targeting public institutions with a 'blade' is interpreted as a judgment that public institutions became excessively bloated during the previous administration, and their financial soundness greatly deteriorated, becoming a significant burden on the national economy. Previously, the Moon Jae-in administration reformed the public institution management evaluation system in 2017 by significantly increasing the weight of social value scores and reducing the weight of financial indicators. Public institutions were also largely used as channels to expand jobs. Following President Yoon Suk-yeol's order, the Ministry of Economy and Finance plans to launch a task force (TF) to carry out public institution reforms.

Some speculate that while the government undertakes high-intensity restructuring of public institutions, it may also conduct a large-scale overhaul of public institution heads appointed toward the end of the Moon administration, who have been criticized as 'entrenched personnel.'

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