Gov`t pushing for large-scale management shakeup in public companies

SEOUL, Dec. 22 (Yonhap) -- The government is pushing for a large-scale shakeup of
senior managers in public companies as part of its efforts to enhance
accountability and cut waste, officials said Monday.
The Ministry of Knowledge Economy, the Ministry for Food, Agriculture, Forestry
and Fisheries and the Ministry of Land, Transport and Maritime Affairs said
reshuffling and laying off manager-level officials is a necessary step to deal
with inefficiency and moral hazards that have been cited in the past.
Public companies make up a sizable part of the national economy and workforce,
but have been criticized for weak overall performance and their inability to
produce tangible results.
"There are no set timetables, but the shakeup should proceed rapidly, with
guidelines having been sent down to individual companies," said an official from
the Knowledge Economy Ministry.
For public companies under the ministry, the guidelines call for at least half of
all senior managers to be replaced, he said.
Executives at the Korea Electric Power Corp. and Korea Gas Corp. have tendered
their resignations en masse, with other utilities companies following suit.
The farm ministry also said that 19 senior officials at the scandal-plagued
National Agricultural Cooperative Federation (Nonghyup) have said they will
resign as reform measures are underway to drastically limit the power of the
chairman.
The past three heads of the 2.4-million-strong cooperative have gone to jail for
corruption, with the last being implicated in illegal kickbacks involving the
brother of former President Roh Moo-hyun.
It said the size of Nonghyup's headquarters will be cut by 20 percent, with
wide-ranging reform measures to be pursued for the National Federation of
Fisheries Cooperative and the National Forestry Cooperative Federation.
Other state-controlled companies pushing for shake-ups are the Korea Railroad
Corp. (Korail), the Korea Highway Corp. and Incheon International Airport Corp.
under the transportation ministry.
The measures to revamp top managerial posts at public companies come as senior
officials at the prime minister's office, the National Tax Service, and education
and agriculture ministries said they will resign.
The moves are in response to efforts by the presidential office and the ruling
camp to tighten up bureaucracies that have been slow to implement measures for
change.
yonngong@yna.co.kr
(END)