This asses Korea’s government-owned management system and addresses its issues so as to suggest measures to improve it.
In Korea, private enterprises are granted self-determination after a management assessment, whereas government-owned corporations are already under the governmental control prior to a management assessment. As the preliminary management of government-owned companies involves administrative organizations, such as the Economic Planning Board, the Ministry of Finance, the Public Procurement Service, and the Board of Audit and Inspection, management and control of these companies are important.
The problems with the present management system as analyzed in this study include poor personnel management, lack of flexibility in budget management, rigidity of the procurement process, excessive work supervision and audit, an unreasonable management assessment system, and an unsatisfactory incentive system. In order to improve the efficiency of state-owned businesses, which serve as the basis of Korea’s national economy, promote stable economic, and successfully embody a fair and welfare-oriented society, some changes ought to be made.
The following is a summary of some of the basic measures necessary for the efficiency of government-owned enterprises: Above all, the government should relax its control to ensure the autonomy of business management. Further measures include installing the “Government-owned Corporation Evaluation and Mediation Committee” in the Economic Planning Board to integrate and mediate all management policies, and handle management assessment in accordance with the introduction of the responsible management system. Also, the government should reform the upper management organization of state-run businesses to actively utilize the outside director system. The top-level managerial team, including the CEO, should be responsible as the in-firm professional management. At the same time, the government should expand incentive systems to motivate employees to maximize business performance.
The government should adopt a new assessment system for three government-owned corporations (Korea Electric Power Corporation, Korea National Oil Corporation, and Korea Integrated Chemical Inc.) and reform regulation necessary for the establishment of a responsible management system. Also, the government should complete the computerized public corporation assessment system, which is under development at the KDI and Boston University, in order to apply the new assessment system to all public-sector companies. Furthermore, the government should lay groundwork for the phased privatization of government-owned enterprise. The KDI should take the lead in advancing the project by forming a partnership with relevant government bureaus, experts, and working groups of public-owned corporations during the first half of 1983.
정부투자기관 관리제도 개선방안(Measures to improve the government-owned corporation management system)
|Series Title; No||정책연구시리즈 / 82-14|
|Subject Country||South Korea(Asia and Pacific)|
|Subject||Economy < General|
|Holding||KDI; KDI School|