Public Institution Performance Evaluation Scoring 'Expanded Financial Criteria, Reduced Social Value'... Ministry of Economy and Finance to Announce Revision Plan Soon

[Asia Economy Sejong=Reporter Son Seonhee] The government is considering a plan to significantly adjust the scoring system for public institution management evaluations. It plans to expand the scoring related to financial performance and reduce the scoring for social value performance, which had greatly increased during the Moon Jae-in administration.

According to related ministries on the 15th, the Ministry of Economy and Finance is scheduled to unveil the public institution management evaluation reform plan this week. This is to present the purpose and overall direction of the reform ahead of the detailed announcement of changes to the management evaluation indicators next month.

First, the scoring related to the financial performance of public institutions is expected to be significantly expanded. Currently, out of 100 points in the management evaluation, the 'financial budget operation and performance' indicator is scored with a maximum of 5 points for public enterprises and 2 points for quasi-governmental institutions. The government plans to increase the score for this indicator and reform the system to give higher performance bonuses to public institution employees who improve financial conditions by reducing debt or increasing revenue. Additionally, achievements in organizational and personnel reductions, asset sales, and welfare improvements will also be reflected in the management evaluation.

The weight of the 'social value implementation' indicator, which has a maximum of 25 points for public enterprises and 23 points for quasi-governmental institutions out of 100 points, is expected to be lowered. This indicator consists of job creation, equal opportunities and social integration, safety and environment, coexistence and cooperation and regional development, and ethical management.

The government also decided to reconsider the appropriateness of the composition of the 'major projects' indicator for each institution, which has a maximum of 45 points for public enterprises and 50 to 55 points for quasi-governmental institutions, from scratch, taking into account changes in the corporate environment and project progress, and to promote reform accordingly.

The implementation performance of each institution according to the public institution innovation guidelines announced last month will also be reflected in the management evaluation. The innovation guidelines include next year's staff reduction and executive position downsizing, a reduction of more than 10% in operating expenses and business promotion expenses, management of employee salaries, reduction of functions competing with the private sector, sale of unnecessary assets, reduction of work area per person, and cuts in welfare benefits such as medical and education expenses.

Along with the direction of the management evaluation reform, the government will also announce plans to reform the management system, including the designation criteria for public institutions. It is likely to reduce the number of public enterprises and quasi-governmental institutions, which total about 130, by changing the designation criteria, while increasing the number of other public institutions. This is to increase the autonomy and accountability of individual institutions and their supervising ministries by expanding other public institutions. The government is also considering measures to allow flexible operation of personnel and budgets for other public institutions.

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