Korea Health Industry Development Institute, the Only Welfare Ministry Affiliated Agency to Receive 'A Grade' in Performance Evaluation

NHIS, HIRA, and NPS Receive Good (B) Grade

Health Promotion Institute Rated 'Very Poor'
Director Cho Hyunjang's Dismissal to Be Recommended

Among the Ministry of Health and Welfare-affiliated organizations, the Korea Health Industry Development Institute (KHIDI) was the only one to successfully receive an excellent (A) grade in the public institution management evaluation. This is the first time KHIDI has received an A grade in the management evaluation.

Cha Sun-do, President of the Korea Health Industry Development Institute
[Photo by Korea Health Industry Development Institute]

On the 16th, the Ministry of Economy and Finance held the 8th Public Institution Management Committee meeting chaired by Deputy Prime Minister Choo Kyung-ho to review and approve the '2022 Public Institution Management Performance Evaluation Results and Follow-up Measures (Draft).' This evaluation covered 36 public enterprises, 94 quasi-governmental institutions, and 63 audit and evaluation agencies. From February, an evaluation team composed of private experts from various fields conducted the evaluation over approximately four months, including external verification procedures, and the results were finalized at the committee meeting. This evaluation was the first to reflect the new government's policy direction, reducing the weight of social value and increasing the weight of financial performance indicators.

KHIDI was selected as one of the 19 institutions that received an excellent or higher rating. According to the Public Institution Management Information Disclosure System (ALIO), KHIDI reduced its debt ratio to 81.83% based on last year's settlement. After the debt ratio surged to 139.75% in 2019 and exceeded 100% with 174.97% in 2020 and 157.05% in 2021, KHIDI succeeded in significantly reducing its debt ratio, which appears to have contributed to the high evaluation of its financial soundness improvement.

This year, no institution received the outstanding (S) grade. Among the Ministry of Health and Welfare-affiliated organizations, only the National Health Insurance Service (NHIS), Health Insurance Review & Assessment Service (HIRA), and National Pension Service (NPS) received a good (B) grade. HIRA improved by one grade from average (C), while NHIS dropped one grade from excellent (A). Despite a large-scale embezzlement incident involving NHIS employees reported in September last year, the institution received good evaluations in other indicators, resulting in only a one-grade drop.

The Korea Human Resource Development Institute for Health and Welfare, Korea Institute of Child Care and Education, and Korea Senior Citizens Employment Agency received average (C) grades, while the Korea Social Security Information Service was rated poor (D). The Korea Health Promotion Institute received a very poor (E) grade. The Ministry of Economy and Finance plans to recommend the dismissal of Cho Hyun-jang, the head of the Health Promotion Institute, holding him accountable for poor management performance. This follows the policy of recommending dismissal for heads of institutions with very poor (E) or poor (D) ratings for two consecutive years, excluding those with short tenures or who have already been dismissed among the nine institutions with poor management performance.

The public institution management evaluation serves as a key indicator for performance-based pay. Depending on the evaluation, public enterprises can receive up to 250% and quasi-governmental institutions up to 100% of the monthly base salary or standard monthly wage for regular employees. However, performance pay is only granted to those who receive average (C) or higher ratings. Accordingly, the Korea Social Security Information Service and Korea Health Promotion Institute are expected not to receive performance pay.

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