Yoon Suk-yeol Government's First 'Public Institution Evaluation' Officially Launched... Financial Performance Score Doubled

Financial Performance 10→20 Points
Financial Risk Institutions like KEPCO, LH, and Korail Under Fiscal Soundness Review
Up to 5 Bonus Points for Efficiency in Organization and Workforce Areas

[Asia Economy Sejong=Reporter Ju Sang-don] The first public institution evaluation since the launch of the new government has officially begun. Last year, the government doubled the financial performance scoring in management evaluations linked to performance bonuses for executives and employees of public enterprises and quasi-governmental institutions, and this is the first evaluation applying that standard.

On the 17th, the Ministry of Economy and Finance held the '2023 Public Institution Management Evaluation Team Workshop' at the Seoul Regional Public Procurement Service, awarding appointment letters to the evaluation team leader and members. This marks the official start of the 2022 public institution management performance evaluation.

At the workshop, Choi Sang-dae, the 2nd Vice Minister of the Ministry of Economy and Finance, emphasized, "The public institution management performance evaluation is a key mechanism to encourage continuous innovation in public institutions. Especially, this evaluation is very significant as the first review of public institution innovation efforts and achievements since the new government took office."

Earlier, in October last year, the government held the Public Institution Management Committee meeting and deliberated and approved the '2022 Public Institution Management Evaluation Manual Revision (Draft)'.

The main point of the revision is strengthening the financial performance evaluation. The existing evaluation indicators of work efficiency (5 points) and organization, personnel, and financial management (7 points) were divided into financial performance management (20 points) and organization and human resource management (4 points). In particular, the financial performance score for public enterprises was doubled from 10 points to 20 points, and the financial budget performance score was significantly increased from 3 points to 11 points.

For 14 institutions selected as financially risky due to deteriorating profitability or weak financial structure, including Korea Electric Power Corporation (KEPCO), Korea Land and Housing Corporation (LH), and Korea Railroad Corporation (KORAIL), a new indicator was introduced to check the appropriateness and implementation efforts of financial soundness plans. To reduce general administrative expenses incurred by institutions outside of project costs, a general administrative expense management indicator was newly created within the financial performance management category.

On the other hand, the 'Social Value Implementation' category was renamed to 'Social Responsibility' and its score was reduced from 25 points to 15 points.

An innovation bonus was also introduced. A bonus of 5 points will be awarded by reviewing innovation plans for efficiency improvements in five major areas prepared by each institution: functions and organization, personnel, budget, assets, and welfare.

The management evaluation team plans to conduct preliminary reviews of management status and projects for 130 public enterprises and quasi-governmental institutions in February, followed by written evaluations and on-site inspections of institutional performance in March and April. The evaluation results are scheduled to be finalized after approval by the Public Institution Management Committee by June 20.

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