Public Institution Management Evaluation Revised: Financial Indicators Down 5.5 Points, Public Value Up 4, Industrial Accident Prevention Up 2

Expansion of Public Value Weighting for Safety Enhancement and Climate Response
Major Projects Increased by 5 Points, Reflecting Each Institution's Characteristics
Separate Absolute Evaluation Introduced for Institution Heads
"To Be Applied to th

The government has revised the guidelines for this year's public institution management evaluation, lowering the weighting for financial indicators by 5.5 points, while increasing the weighting for public value and industrial accident prevention by 4 points and 2 points, respectively. New incentives have also been introduced for innovation, such as creating safer workplaces and utilizing artificial intelligence (AI). The evaluation of institution heads will be conducted separately using an absolute evaluation method, and the results will be reflected not only in performance bonuses but also in personnel actions.

On September 30, the Ministry of Economy and Finance, presided over by Second Vice Minister Lim Kigeun, held the 9th Public Institution Management Committee meeting and deliberated and approved the "2025 Revised Guidelines for Public Institution Management Evaluation."

This revision of the guidelines was made to reflect the need for updates following the confirmation of the 2025 evaluation guidelines in December last year, due to legislative amendments and changes in new government policy directions. The final version was determined after discussions within the joint public-private "Task Force for Improving Public Institution Management Evaluation System," as well as collecting feedback from public institutions and conducting internal reviews.

The government has improved the guidelines to create a more balanced evaluation system that considers not only the financial but also the economic and social roles of public institutions. To strengthen the social responsibility of public institutions, such as enhancing safety management and responding to climate change, the weighting for public value was increased from 16.5 points to 20.5 points. The weighting for financial indicators, which had been criticized for overlap and excessive emphasis, was reduced from 21 points to 15.5 points. The weighting for industrial accident prevention was raised from 0.5 points to a record high of 2.5 points.

Additionally, to reinforce the accountability of institution heads for management innovation and performance, a separate "Institution Head Management Contract Performance Evaluation" was introduced, distinct from the overall institution evaluation. This evaluation, which assesses individual capabilities such as leadership, expertise, and contract performance, will be conducted using a four-grade absolute scale (Excellent, Satisfactory, Insufficient, Severely Insufficient). If the result is "Insufficient," a warning will be issued; if it is "Severely Insufficient," dismissal will be recommended. These results will also be linked to performance bonuses and personnel actions.

To encourage public institutions to contribute to national development through management and technological innovation, new incentives have been established. A 1.5-point incentive will be given for creating safer workplaces, and another 1.5-point incentive for innovation, including the use of AI. Efforts to create safer workplaces include not only strengthening and supporting the safety capabilities of partner companies but also promoting safety culture and communication. The innovation incentive is awarded when AI is used to improve productivity, enhance services, or increase public convenience.

To strengthen the performance of work carried out in line with the founding purpose of each public institution and the implementation of national policy projects, the weighting for major projects will be increased by 5 points each. For public enterprises, the weighting will rise from 45 points to 50 points; for quasi-government (fund) institutions, from 50 points to 55 points; and for quasi-government (commissioned) institutions, from 55 points to 60 points. Since major projects are evaluation indicators set individually based on the characteristics of each institution, the government believes this will help reflect each institution's unique features in the evaluation.

The Ministry of Economy and Finance stated, "The revised 2025 guidelines for public institution management evaluation will be applied to the 2025 performance evaluation to be conducted in the first half of next year," adding, "The final evaluation results are expected to be confirmed at the Public Institution Management Committee in June next year."

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