Gov`t to slash public-sector workforce for better efficiency

SEOUL, Dec. 21 (Yonhap) -- South Korea's major state-run corporations will be forced to implement massive personnel reductions, introduce a merit pay system and sell off unnecessary assets in accordance with a government campaign to streamline management and improve efficiency in the public sector, officials said Sunday.
The Ministry of Strategy and Finance said that a total of 69 state-run
corporations and institutions, including power monopoly Korea Electric Power
Corp. (KEPCO), will slash a total of 19,000 workers, or 13 percent of their
combined payrolls, over the next three to four years.
The ministry said that it will also introduce a performance-linked salary system
and forced retirement scheme for some of the public institutes to make it easier
for them to fire less competitive workers.
The measures are part of government efforts to streamline business efficiency in
the public sector, which has frequently been under fire for its lax management
and foot-dragging in implementing reforms. They are the fourth such reform
package unveiled by the government so far this year.
Korea Railroad will likely bear the brunt of the restructuring drive, with a
total of 5,115 employees expected to be trimmed, according to the ministry. KEPCO
came next with 2,420 workers to be slashed.
Korea Hydro & Nuclear Power Co. will be forced to cut 1,067 from its payroll,
with Korea Rural Community & Agriculture Corp. and Industrial Bank of Korea
slashing 844 and 740 employees, respectively, the ministry said.
In a related restructuring move, the public institutes will sell a combined 8.5
trillion won (US$6.58 billion) worth of assets, including land and buildings.
They will also seek to reduce government stakes in other firms, the ministry
said, adding that detailed plans will be determined in the near future.
kokobj@yna.co.kr
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