The purpose of this study is to analyze the present status and reality of government control over public corporations in Korea today.
As Marshall Edward Dimock points out, the fundamental question of public corporation management is how to find the balance between efficiency and control by achieving both the autonomy and accountability of management. Accordingly, a key question we must answer is to what extent governments should control public corporations.
This stdy is divided into three parts. Following the introduction, Chapter 2 examines the institutional aspects of control, while Chapter 3 discusses the actual practice of control as exercised upon government-invested and private-invested institutions. Chapter 4 reviews control over four fertilizer companies using the same data.
This study is preceded by a fact-finding survey that sought to determine the actual state of control over public corporations in Korea through interviews with 75 executives and 166 department heads at four fertilizer companies. The survey led to a number of conclusions.
First, as many executives pointed out, control over public corporations comes from multiple sources and tends to be excessive. Second, there is a significant difference in the degree to which government-invested and private-invested institutions are controlled. Third, of the diverse forms of control exerted upon public corporations, auditing and accounting control, budgetary control, pricing control, and investment planning control tend to be the most rigorous, while greater autonomy is found in matters of personnel (except for the appointment of executives), sales activities, and production activities. Fourth, no significant difference was found in terms of the degree to which executives and department heads are subject to control.
- 공기업에 대한 통제(Control of public corporations)