'Like a Carbon Copy from 9 Years Ago'... Public Institution Innovation Plan Recycled from Park Administration

13 Failing Institutions Were Also Debt-Focused 9 Years Ago... Similar Measures Like Selling Non-Performing Assets Implemented

[Asia Economy Sejong=Reporter Kwon Haeyoung] The Yoon Seok-yeol administration's announced innovation plan, which forecasts a large-scale, high-intensity overhaul of public institutions, is being criticized as a 'copycat policy' of the public institution normalization measures introduced by the Park Geun-hye administration in 2013. There are concerns that both the institutions that failed and the measures taken are merely rehashes of previous policies that yielded no results, ultimately amounting to a noisy but empty effort. ▶Related article on page 3

According to the Ministry of Economy and Finance on the 5th, among the 14 institutions selected as financially risky this year as part of the public institution normalization measures, 13 (93%) excluding Korea District Heating Corporation were also designated as heavily debt-managed public institutions under the Park Geun-hye administration in 2013. These include Korea Electric Power Corporation and its subsidiaries (Korea Hydro & Nuclear Power and five power generation companies), Korea District Heating Corporation, Korea Land and Housing Corporation (LH), resource public enterprises (Korea National Oil Corporation, Korea Mine Reclamation Corporation, Korea Gas Corporation, Korea Coal Corporation), and Korea Railroad Corporation. Energy public enterprises continue to be subject to management due to the aftermath of resource diplomacy that intensified during the Lee Myung-bak administration and the Moon Jae-in administration's nuclear phase-out and job policies.

Moreover, most of the measures proposed as part of the public institution innovation plan, such as disposal of non-performing assets, abolition of overlapping functions with the private sector, and reduction of welfare benefits, are similar to those from nine years ago. The caveat that restructuring and privatization are to be avoided is exactly the same. There is criticism that the government, cautious of labor unions, fails to present strong reform measures and ignores the fundamental causes of worsening financial conditions.

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