Government Launches Comprehensive Survey of Assets Held by Public Institutions

Asset Sale Process for Struggling Public Enterprises Likely to Begin in Earnest

[Asia Economy Sejong=Reporter Kwon Haeyoung] The government has launched a full-scale survey of assets held by public institutions. With the announcement that "the public institution party is over" and a high-intensity reform promised, it is expected to actively proceed with efforts to improve financial structure and streamline organizations through the sale of assets of insolvent public enterprises.

According to the Ministry of Economy and Finance on the 29th, last week, an official letter was sent to 133 public institutions subject to management evaluation, requesting a report on the status of their held assets.

An official from the Ministry of Economy and Finance stated, "Currently, public institutions are only required to disclose tangible assets (land, buildings, etc.), so the government cannot grasp the status of all assets," and added, "We plan to review the actual asset status of all public institutions subject to management evaluation."

It is reported that the Ministry of Economy and Finance especially requested reports on the status of shares invested by affiliates or related organizations.

Through this full-scale survey of assets held by public institutions, the government is expected to promote restructuring such as asset sales focusing on institutions with high financial risk. Previously, the government selected about ten institutions based on business and financial risk indicators such as debt ratio and return on total assets, and announced plans to establish soundness plans according to mid- to long-term financial goals. The sale of non-core assets is one of the soundness plans disclosed by the government.

Korea Electric Power Corporation (KEPCO) also received an order from the government to strengthen its self-rescue plan before raising electricity rates for the third quarter on the 27th. KEPCO is pursuing financial structure improvement worth about 6 trillion won through real estate sales and restructuring of overseas businesses.

Accordingly, the Ministry of Economy and Finance is expected to actively proceed with the sale of non-core assets focusing on public institutions with high financial risk, starting with this full-scale survey of held assets.

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