Local Public Enterprise Management Evaluation Begins... Focus on 'Efforts to Revive Regional Economy'

281 Local Public Enterprises to Be Evaluated
New Indicators Introduced for National Policy Initiatives

The government will conduct a management evaluation of local public enterprises based on last year's performance. In response to the economic downturn, it plans to more thoroughly examine the efforts of local public enterprises to revive regional economies.

The Ministry of the Interior and Safety announced on the 20th that it will commence the "2025 Local Public Enterprise Management Evaluation." The evaluation will officially begin with a workshop for the Local Public Enterprise Evaluation Committee held on the 21st.

The local public enterprise management evaluation is conducted annually under the supervision of the Ministry of the Interior and Safety. It compares and evaluates the management performance of local public enterprises nationwide by type and publishes the results on the Integrated Disclosure Website for Local Public Institutions. For institutions with poor evaluation results, management diagnosis and consulting are provided to help local public enterprises improve the quality of public services.

This year's management evaluation strengthens the assessment of efforts to revive regional economies, considering the increasing internal and external uncertainties and the worsening construction industry. For example, in the urban development category, a new scoring item (1 point) was added to the investment activation indicator, which was previously a qualitative evaluation.

Indicators were also improved so that institutions participating in national policies can receive favorable scores. A new indicator for efforts to overcome low birth rates and regional extinction was introduced, and institutions contributing to price stabilization by freezing fees are given additional points.

The evaluation indicators consist of two main categories?management and management performance?seven subcategories, and about 20 detailed indicators. In the management category, the evaluation covers overall institutional operation systems such as ▲contribution to local communities including regional coexistence, consideration for socially vulnerable groups, and communication with local residents ▲public interest and budget planning and operation status including safety and environmental management ▲appropriateness of organization and personnel management. In the management performance category, the focus is on ▲the institution’s core business performance such as urban railway passenger transport results ▲business performance such as operating profit ratio ▲and business outcomes and efficiency such as customer satisfaction.

This year's evaluation committee was formed through a public recruitment process with 131 experts from various fields including professors, accountants, and labor attorneys. Notably, the proportion of management and economic experts was increased by 15 percentage points from last year to about 60%, enhancing expertise in evaluating management efficiency.

On the 21st, the evaluation committee will share this year's evaluation direction at a workshop held at SpaceShare Seoul Jungbu Center and conduct practical training to improve the expertise of evaluators, including evaluation guidelines by indicator and type. The committee will conduct management evaluations of 281 local public enterprises by July and finalize the results after review by the Local Public Enterprise Policy Deliberation Committee in early August.

Han Soon-gi, Director of the Local Finance and Economy Office at the Ministry of the Interior and Safety, stated, "The local public enterprise management evaluation is a key tool for local public enterprises to identify their strengths and weaknesses during the evaluation process and provide better public services. Based on a fair and objective evaluation, we will provide incentives such as awards to excellent institutions and strengthen feedback by conducting management diagnoses for underperforming institutions to ensure local public enterprises can faithfully fulfill their core roles."

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