Choo Kyung-ho: "No Tolerance for Inefficiency and Reckless Management in Public Institutions... Pushing for Painful Innovation"

Ministry of Economy and Finance Announces 'New Government Public Institution Innovation Guidelines'
Deputy Prime Minister Choo Kyung-ho: "Efforts to Innovate Public Institutions to Become Small but Efficient Organizations"

[Asia Economy Sejong=Reporter Kwon Haeyoung] On the 29th, Deputy Prime Minister and Minister of Economy and Finance Choo Kyung-ho stated, "The new government will no longer tolerate inefficiency and reckless management in public institutions," and pledged to make every effort toward public institution innovation.

On the same day, Deputy Prime Minister Choo presided over the 9th Public Institution Management Committee, finalized the 'New Government Public Institution Innovation Guidelines,' and said, "In a situation where the difficulties of the people's economy are intensifying, the public sector, including public institutions, must take the lead in tightening their belts and pushing forward with rigorous, painful innovation."

He diagnosed, "Over the past five years, the workforce in public institutions has increased by 115,000 (34.4%), and the scale of debt has increased by 84 trillion won, accumulating inefficiencies due to bloating. Profitability and productivity have significantly deteriorated, and the number of public enterprises unable to even pay interest from their earnings has sharply increased from 5 in 2017 to 18 in 2021." He emphasized, "We will make every effort in public institution innovation so that public institutions can be reborn as small but well-performing organizations."

The three major tasks for public institution innovation under the new government were presented as ▲ improving productivity in the public sector ▲ reforming the public institution management system ▲ strengthening cooperation between private and public institutions, to be implemented sequentially. On this day, the public institution innovation guidelines containing innovation tasks in five major areas?▲ functions ▲ organization and personnel ▲ budget ▲ assets ▲ welfare?were announced.

Deputy Prime Minister Choo stated, "We will reduce the 2023 public institution workforce by downsizing the private-sector competing and non-core functions of public institutions and slimming down bloated organizations and personnel." He added, "Unnecessary assets will be sold, and the shares of non-core and insolvent investee companies will be promptly reorganized." He continued, "We will revise the compensation system to be job- and performance-centered, reduce general expenses and business promotion expenses by more than 10% in the second half of this year, and reasonably review and adjust excessive welfare benefits to meet public expectations."

He also urged voluntary innovation efforts from public institutions and their supervising ministries. He emphasized, "Efforts and achievements for public institution innovation will be reflected in public institution management evaluations and government work evaluations to ensure accountability of institutions and ministries. Innovation plans of each institution will be incorporated into the management contracts of institution heads, and management evaluations will be conducted based on this."

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