"Public Institutions to Cut Operating Expenses by 1.1 Trillion Won Until Next Year... Asset Sale Plan to Be Announced in October"

Deputy Prime Minister Choo Kyung-ho Holds Accompanying Reporters Meeting in Washington DC
Confirms Plans for Public Institution Budget Efficiency and Welfare Improvement
1.1 Trillion KRW Savings by First Half of Next Year, Asset Efficiency Measures to Be Announced Soon

Deputy Prime Minister and Minister of Economy and Finance Choo Kyung-ho spoke about the public institution reform plan during a meeting with the accompanying press corps on the 14th (local time) in Washington DC, USA, where he visited to attend the G20 Finance Ministers' Meeting. (Photo by Ministry of Economy and Finance)

The government plans to cut more than 1 trillion won in operating expenses by next year to improve budget efficiency in public institutions and will also abolish high school tuition support for employees. The improvement plan containing these measures will be announced on the 17th, and an announcement related to the sale of public institution assets is expected to be made as early as the end of this month.

On the 14th (local time), Deputy Prime Minister and Minister of Economy and Finance Choo Kyung-ho, who is visiting Washington DC to attend the G20 Finance Ministers' Meeting, held a meeting with the accompanying press corps and made these remarks.

Deputy Prime Minister Choo said, "We will finalize and announce the budget efficiency and welfare improvement plans for public institutions on the 17th, and the announcement regarding the sale of public institution assets is scheduled for late October or early November. Each public institution has submitted its own innovation plan to the Ministry of Economy and Finance, and we are currently reviewing them."

Earlier, at the end of July, the government finalized and announced the "New Government Public Institution Innovation Guidelines" targeting 350 public institutions. The guidelines consist of five key focus areas: ▲function reduction ▲organization and personnel downsizing ▲budget cuts ▲sale of unnecessary assets ▲adjustment of welfare benefits.

Starting with the announcement of 'budget efficiency' and 'welfare improvement' on this day, the Yoon Suk-yeol administration's public institution innovation plan is expected to be fully launched.

Regarding budget efficiency in public institutions, Deputy Prime Minister Choo said, "The plan is to reduce operating expenses of public institutions by about 1.1 trillion won, with 710 billion won cut in the second half of this year and an additional 430 billion won cut in 2023."

On welfare improvements, he explained, "We are implementing more than 700 improvement tasks across 282 institutions, including abolishing high school tuition support in 102 cases, improving in-house loans in 96 cases, reducing excessive congratulatory and condolence expenses and selective welfare in 87 cases, and converting founding anniversary days to unpaid holidays in 161 cases."

Deputy Prime Minister and Minister of Economy and Finance Choo Kyung-ho spoke about the public institution reform plan during a meeting with the accompanying press corps on the 14th (local time) while visiting Washington DC, USA, to attend the G20 Finance Ministers' Meeting. (Photo by Ministry of Economy and Finance)

Regarding the sale of public institution assets, which has attracted significant attention inside and outside the government, Deputy Prime Minister Choo said, "We are currently reviewing it, and I think we can announce it around late October or early November at the earliest. The sales will be conducted on a voluntary basis according to each institution's plan, following fair and transparent procedures."

The Ministry of Economy and Finance's position is to sell assets that have low relevance to the core functions or are unnecessary to improve productivity and efficiency of public institutions. Representative examples include Korea Electric Power Data Network (KEPCO KDN)'s 21.43% stake in the news channel YTN and golf course and condo memberships held by multiple institutions.

Earlier, Kim Jang-hyun, CEO of KEPCO KDN, stated at the National Assembly's Industry, Trade, Energy, Small and Medium Enterprises Committee audit on the 11th that "We will proceed with the sale of YTN shares."

Regarding criticisms that the new government's tax cut policies, including corporate tax reductions, have minimal effects, Deputy Prime Minister Choo said, "The tax revenue reduction due to tax reform is about 6 trillion won next year, which accounts for only 1.6% of total revenue. There is also the aspect of responding to the economy by enabling consumption and investment."

When asked whether the government is considering fiscal expansion measures to stimulate the economy given the expected economic slowdown next year, he explained, "It is a completely different issue whether we should expand fiscal spending more just because we pessimistically assume how much worse the economy will get next year. We have no intention of changing the current fiscal budget and tax reform policy direction."

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