Gov`t to oust heads of inefficient public corporations

Beginning this month at the earliest, presidents of state-owned enterprises (SOE) engaged in lax management will be driven out. Moreover, the government will reduce the public sector workforce by 12,800 people within the year, including 4,600 government officials.

It will also introduce a more aggressive corporate insolvency management system, under which financial institutions will suspend fresh loans to companies expected to become insolvent.

Economy-related ministers, including Finance-Economy Minister Jin Nyum, included these plans in a report on reforming the nation's four major sectors that was delivered to President Kim Dae-Jung Friday during a meeting at Cheong Wa Dae.

Under the initiative, the government will replace or issue warnings to the management of SOEs when the results of Board of Audit & Inspection (BAI) reviews are unveiled at the end of this month. Some SOEs will have new presidents by next month, officials said.

Government-invested agencies will also be required to sign management contracts with the government before their first shareholders' meetings this year (most of which are in March). The contracts will specify their management goals for this year.

In addition, 4,600 central government officials, 7,100 officials of local government agencies and 1,100 in organizations affiliated with the government will be fired.

By agency, the Ministry of Information and Communication will let go the highest number of workers at 3,756 and the Ministry of Maritime Affairs and Fisheries will shed 436 employees. Sixty-six people will lose their jobs at the Ministry of Agriculture and Forestry, 607 at the National Health Insurance Corp., and 302 at the Environment Facility Management Corp. 157 and the Korea Institute of Industrial Design Promotion will cut the labor force at the Korea Transportation Safety Authority by 15.

The government's move came following complaints from the public that it was forcing reforms only in the public sector while dragging its feet in restructuring the public sector.