(2nd LD) Lee indicates sweeping overhaul of bureaucracy

(ADDS president's remarks on property prices in paras 11-13)
By Yoo Cheong-mo
SEOUL, Dec. 22 (Yonhap) -- President Lee Myung-bak said on Monday that his bid
for economic reform and change won't be hindered by the ongoing economic
difficulties, urging ranking civil servants to follow his administrative vision
and philosophy in weathering the unprecedented financial crisis.

Meeting with top officials of the land, agriculture, public administration and
environment ministries over their key policy goals for 2009, Lee warned that some
reform-resistant bureaucrats, who gained rapid promotion under the previous
liberal administration, are still passive in enforcing his reform and stimulus
measures.
"Civil servants have to take the lead (in overcoming the crisis). If some of them
fail to keep up with the speed (of reform and change), all progress will be
slowed," said Lee.
"Civil servants are required to firmly establish their own state vision so that
they can help overcome the crisis and make preparations for the new era. Their
unified attitudes will help the nation upgrade its global competitiveness."
According to political watchers, Lee's remarks may be a signal of an upcoming
sweeping shakeup of reform-shy ranking officials at major ministries, who are
blamed for failing to faithfully carry out the conservative president's reform
policies.
Over the past week, all "Grade One" officials at half a dozen ministries,
including education, foreign affairs, agriculture and unification, have offered
to resign, as the conservative Lee administration strived to further distance
itself from policies devised by his liberal predecessor, Roh Moo-hyun.
Following the upcoming replacement of top government officials, Lee is expected
to conduct a Cabinet reshuffle early next year to revamp the overall
administrative atmosphere ahead of his first inaugural anniversary in February.
Over the weekend, the Lee government announced an ambitious plan to shed 19,000
jobs in the public sector, with 69 major state-run corporations slashing 10
percent to 37.5 percent from their current payrolls in the coming three to four
years.
"Economic circumstances are worsening. But we will never slow our efforts for
changes and reforms. All civil servants have to join forces to revitalize the
economy and implement reforms," said the president.
He instructed the four ministries to execute their 2009 budget spending "swiftly
and efficiently," to deepen inter-ministerial cooperation in major public works
projects and minimize waste of taxpayer money.
According to deputy presidential spokesperson Kim Eun-hye, Lee instructed his
Cabinet ministers to take deregulatory measures to prevent a steep fall in
property prices.
"A decline in real estate prices is a worldwide trend. But a hard landing should
be averted, considering Japan's 'lost-decade' experience," the president was
quoted by Kim as saying.
"Deregulation won't lead to a rise in real estate prices. From now on, the real
estate market should be regulated by lending and interest policies."
Meanwhile, the Ministry of Public Administration and Security reported to the
president that the government will introduce a so-called "two-strike out system"
for all ranking civil servants above Grade Three starting next year, in a bid to
promote a competitive atmosphere and weed out incompetent officials.
Under the system, any officials who rank in the bottom for two consecutive years
in the annual job performance assessment will be dismissed. In South Korea, a
civil servant's job has been traditionally called an "iron rice bowl" because of
its solid job security.
The Ministry of Environment unveiled a plan to create 43,000 new jobs through
expansion of basic environmental facilities and implementation of various public
projects related to green growth and the fight against climate change.
The Ministry of Land, Transport and Maritime Affairs reported that it will spend
65 percent of the 23.4 trillion won (US$18.2 billion) earmarked for various
infrastructure expansion projects next year in the first half in accordance with
the government's economic stimulus measures.
The Ministry for Food, Agriculture, Forestry and Fisheries also disclosed its own
budgetary front-loading, allocating nearly 10 trillion won to improve rural
infrastructure and create about 32,000 new jobs in the agriculture and food
sectors.
ycm@yna.co.kr
(END)