Daehan Coal Corporation Receives 'Highly Inadequate' Rating Ahead of Dissolution... Public Institution Safety Management Results Announced

The safety management at Daehan Coal Corporation was evaluated as being highly inadequate. Korea Expressway Corporation, Korea East-West Power, and Korea Land & Housing Corporation (LH) were also judged to be insufficient.

June 30, 2025, closed coal mine at Dokye Mine Office of Korea Coal Corporation, Samcheok City, Gangwon Province. Photo by Jin-Hyeong Kang

The Ministry of Economy and Finance announced on May 6 that the results of the '2025 Public Institution Safety Management Rating Review' were deliberated and approved at the 5th Public Institution Management Committee meeting, presided over by Second Vice Minister Heo Jang, on April 30.

Daehan Coal Corporation received a grade of 'average' (Level 3) in the 2024 review, but in this assessment, it dropped two levels to Level 5, 'highly inadequate.' Level 5 indicates either the absence of a dedicated safety organization or, if one exists, a lack of safety experts, extremely low participation from members, and a severe lack of safety activities at work sites. Daehan Coal Corporation was the only institution to receive a Level 5 rating. This is the first time in five years that the lowest rating has been given, since Saemangeum Development Corporation was rated 'highly inadequate' in 2022. Daehan Coal Corporation has transferred its coal stockpiling operations to Korea Mine Rehabilitation and Mineral Resources Corporation and has effectively ended all its operations. Relevant authorities are currently discussing organizational liquidation plans.

Of the 104 institutions reviewed, an increase of 31 from the previous year, 21 received Level 2 (Good), 77 received Level 3 (Average), 5 received Level 4 (Inadequate), and 1 received Level 5 (Highly Inadequate). As in the previous year, there were no institutions rated Level 1 (Excellent).

According to this year's results, institutions in the lower tiers (Levels 4 and 5) must implement measures to enhance safety capabilities, such as providing training for management and safety department employees based on consulting and diagnostics by safety-specialized agencies, and must report their achievements quarterly to the relevant ministry.

Fourteen institutions, including Korea South-East Power, Korea Southern Power, Korea Racing Authority, Korea National Oil Corporation, Korea Hydro & Nuclear Power, Korea District Heating Corporation, KEPCO KDN, Government Employees Pension Service, National Pension Service, Seoul Olympic Sports Promotion Foundation, Korea Radioactive Waste Agency, Ulsan Port Authority, Incheon Port Authority, and Korea Water Resources Survey & Technology Institute, received Level 2 ratings for both 2024 and 2025.

The five institutions that received Level 4 are Korea Expressway Corporation, Korea East-West Power, Korea Land & Housing Corporation (LH), Korea Employment Agency for the Disabled, and Industrial Bank of Korea (IBK).

The Ministry of Economy and Finance also approved the '2025 Integrated Public Institution Disclosure Inspection Results and Follow-Up Measures' on the same day. Eighteen institutions, including Korea Gas Corporation, Korea Deposit Insurance Corporation, and Korea Research Institute for Human Settlements, were selected as 'excellent disclosure institutions' for not receiving any penalty points for disclosure violations for three consecutive years (two years for other public institutions). The number of excellent disclosure institutions increased by four compared to the previous year. Fourteen institutions, including Kyungpook National University Hospital, were recognized as 'improved disclosure institutions' for reducing penalty points by more than 50% for two consecutive years, two fewer than the previous year.

This year, there were no institutions designated as 'institutions of concern' or 'unreliable disclosure institutions.' It is the first time in two years since the 2023 inspection.

The Ministry of Economy and Finance inspected 20 items, such as new hires, executive salaries, welfare expenses, balance sheets, and audit reports, disclosed on the public institution management information system (ALIO), for 317 institutions (out of a total of 331 subject to management disclosure obligations, excluding the 14 excellent disclosure institutions).

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