13 Organizations Including Gas Corporation and Airport Corporation Fail... Recommendation to Dismiss Head of Employment Information Service

Ministry of Economy and Finance, Public Institution Management Performance Evaluation

In the government's evaluation of public institutions' management performance, 13 organizations including Korea Gas Corporation and Korea Airports Corporation received failing grades. The government recommended the dismissal of the chairman of the Korea Employment Information Service, which received the lowest rating.

On the 19th, the Ministry of Economy and Finance held the 7th Public Institution Management Committee meeting chaired by Deputy Prime Minister and Minister of Economy and Finance Choi Sang-mok, where they approved the "2023 Public Institution Management Performance Evaluation Results." A total of 32 public enterprises and 55 quasi-governmental institutions were evaluated based on last year's performance, with ratings ranging from Excellent (S) to Outstanding (A), Good (B), Average (C), Poor (D), and Very Poor (E).

According to the evaluation results, 13 institutions received grades of D or lower, which are considered failing. Among them, 11 institutions received a D grade, including Korea Gas Corporation, Korea Airports Corporation, Korea Railroad Corporation, and Housing and Urban Guarantee Corporation. The institutions that received the lowest E grade were Korea Broadcast Advertising Corporation and Korea Employment Information Service. Heads of institutions that received an E grade or a D grade for two consecutive years are subject to dismissal recommendations. The Ministry of Economy and Finance recommended the dismissal of Kim Young-jung, the head of Korea Employment Information Service, which received an E grade.

Warnings were issued to 13 heads of institutions with poor management performance or those where serious accidents occurred. Among the institutions rated D, six heads who have served for more than six months?Housing and Urban Guarantee Corporation, Korea Gas Corporation, Korea Land Safety Management Institute, Small Enterprise and Market Service, Korea Industrial Complex Corporation, and Korea Radioactive Waste Agency?along with eight heads currently serving in institutions where fatal accidents occurred (Korea Gas Corporation, Korea Rural Community Corporation, Korea Expressway Corporation, Korea Electric Power Corporation, Korea Midland Power, Korea Railroad Corporation, Korea Land and Housing Corporation, and Korea Environment Corporation) were subject to warnings.

For two institutions, Korea Mining and Resources Corporation and Korea Coal Corporation, whose financial conditions rapidly deteriorated and recorded increased net losses as of the end of last year, the heads, auditors, and standing directors had their performance bonuses cut by 100%. For subsidiaries related to Korea Electric Power Corporation (KEPCO)?namely, Korea South-East Power, Korea Southern Power, Korea East-West Power, Korea Western Power, Korea Midland Power, and Korea Hydro & Nuclear Power?that recorded net losses last year but showed improved deficit margins, the heads, auditors, and standing directors had their performance bonuses cut by 50%. As of the end of last year, KEPCO's consolidated debt reached a record high of 202.5 trillion won. Due to this massive debt, KEPCO incurred interest expenses of 1.15 trillion won in the first quarter of this year alone.

As with last year, no institution received an S grade this year. Fifteen institutions received an A grade, 30 received a B grade, and 29 received a C grade. Korea Hydro & Nuclear Power and the Korea Trade-Investment Promotion Agency (KOTRA) achieved outstanding results in major projects and received A grades. The National Park Service, which received an A grade, stood out in public institution innovation such as the introduction of job-based pay, while KEPCO KPS and Incheon International Airport Corporation showed improved financial performance.

Deputy Prime Minister Choi said, "This public institution management performance evaluation strictly reflected cases that do not meet public expectations, such as worker fatalities, embezzlement of project funds, and private use of official vehicles," adding, "We hope these results will serve as a turning point for public institutions to become the vanguard in national affairs focused on people's livelihoods and future preparedness."

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