This study suggests ways to improve internal business management and policy directions for privatization, as a means to improve efficiency in Korea’s public enterprise sector.
Korean public enterprises have been managed well compared to those in underdeveloped countries. Still, it is an opportune time for Korea to establish strategic methods for management improvement by targeting economically advanced countries as our competition for further improvement. The public enterprise sector will be able to facilitate development and enhance effects of improving corporate fundamentals, which is what private companies are trying to do, if it restructures its organization and adjusts work performance to enable optimal business management.
The first improvements should be made in the role of the government for the internal business management improvements of public enterprises. The government needs to ensure that public enterprises increase professionalism by excluding political interests in the appointments of top management, and encourage management improvement by determining resignation based on management performance. Furthermore, top management should take responsibility to improve management by consistently pursuing measures for management restructuring.
Second is the privatization of public enterprise. Public enterprises need to be privatized, if possible, to increase management efficiency. The efficiency should be their top priority and the enterprises should try to be as efficient as possible so that the original intention for privatization is not tarnished.
It is necessary to allow large companies and foreign firms to be subject to privatization to ensure their management experiences are used to help strengthening the public enterprises’ management system.
우리나라 공기업부문의 경영관리개선과 민영화 정책방향(Business management improvement and policy direction for privatization for Korea’S public enterprise sector)
|Series Title; No||정책연구시리즈 / 94-10|
|Subject Country||South Korea(Asia and Pacific)|
|Subject||Economy < Financial Policy|
|Holding||KDI; KDI School|