ID :
24140
Mon, 10/13/2008 - 13:52
Auther :
Shortlink :
http://m.oananews.org//node/24140
The shortlink copeid
EDITORIAL from the Korea Herald on Oct. 13: Below expectations
The administration's finalized plan for privatization is simply disappointing. Of the 319 state-owned corporations that have been under review, only 38 will be put on the block. Last week, the administration said it has selected 108 corporations for privatization, consolidation and the readjustment of business areas. When the planned reform is completed, it said, the number of state-owned corporations will decline by 45.
One exception that still awaits a final decision is the planned merger of the
Korea Credit Guarantee Fund and Kibo Technology Fund.
The need to privatize as many state-owned corporations is corroborated by the
parliamentary inspection of government agencies. Pay is unreasonably high while
their performances are dismally low. Corruption, ranging from bribery to tax
dodging, is pervasive.
On its inauguration, President Lee Myung-bak's administration promised a
wide-ranging reform of the public sector, which it said was required to advance
the nation's economy. But it did not take long before the administration scaled
down its project.
The new administration lost much of its momentum in May and June when it was
under siege from protesters denouncing it for resuming beef imports from the
United States with no proper precaution against mad cow disease. In an apparent
attempt to stem further opposition, Lee said in a news conference, "Some
state-owned corporations are doing better than their counterparts in the private
sector."
Since then, the focus has shifted from privatization to what he called the
"advancement of state-owned corporations" - managerial improvements and
consolidation. It should come as no surprise if many wonder how the
administration will be able to make good even on the scaleddown privatization
plan.
This is not to belittle efforts to trim organizations, cut payrolls and make
other managerial improvements. The administration will have to deliver on its
promise to reform the corporations that remain state-owned and make them much
more competitive.
One exception that still awaits a final decision is the planned merger of the
Korea Credit Guarantee Fund and Kibo Technology Fund.
The need to privatize as many state-owned corporations is corroborated by the
parliamentary inspection of government agencies. Pay is unreasonably high while
their performances are dismally low. Corruption, ranging from bribery to tax
dodging, is pervasive.
On its inauguration, President Lee Myung-bak's administration promised a
wide-ranging reform of the public sector, which it said was required to advance
the nation's economy. But it did not take long before the administration scaled
down its project.
The new administration lost much of its momentum in May and June when it was
under siege from protesters denouncing it for resuming beef imports from the
United States with no proper precaution against mad cow disease. In an apparent
attempt to stem further opposition, Lee said in a news conference, "Some
state-owned corporations are doing better than their counterparts in the private
sector."
Since then, the focus has shifted from privatization to what he called the
"advancement of state-owned corporations" - managerial improvements and
consolidation. It should come as no surprise if many wonder how the
administration will be able to make good even on the scaleddown privatization
plan.
This is not to belittle efforts to trim organizations, cut payrolls and make
other managerial improvements. The administration will have to deliver on its
promise to reform the corporations that remain state-owned and make them much
more competitive.
