Job cuts inevitable for public sector reform: official

SEOUL, Dec. 9 (Yonhap) -- A workforce reduction will be the inevitable result of a continued government drive to enhance efficiency in the public sector, a top policymaker said Tuesday.

"Ongoing efforts to improve public sector management efficiency by 10 percent
will inevitably require a personnel overhaul," Vice Finance Minister Bae
Kook-hwan told a local radio program.
The remark follows a recent government directive that requires state-run firms to
propose new measures to streamline operations, including payroll reduction plans,
according to media reports.
The nation's power monopoly, Korea Electric Power Corp., is considering cutting
its payroll by 10 percent -- around 2,000 employees -- over the next three years,
according to industry and government sources.
Since his inauguration in February, President Lee Myung-bak has pushed to
overhaul state-run enterprises and other public entities accused of inefficient
management and wasteful spending of taxpayer money.
South Korea has a total of 305 public enterprises. According to the latest
government data, their combined 2008 budgets stood at 338 trillion won (US$233
billion), employing over 260,000 workers as of the end of 2007.
"Given that the public sector makes up a significant part of our economy, we
cannot weather current difficulties without making it competitive," Bae said,
adding that the process will be carried out over the next three-to-five years,
both through natural and voluntary retirement.
The move is in line with efforts being made by the private sector, including
banks, which are also weighing restructuring measures to survive the global
financial turmoil.
kokobj@yna.co.kr
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