KRC President to be Kicked Out

The government decided yesterday to dismiss Park Moon-soo, the president of the Korea Resources Corporation (KRC), which had shown the poor operation results last year.

The steering committee of the state-owned institutions (chairman Jeon Yun-Churl, Minister of the Planning and Budget) announced the dismissal of the president of the KRC through the review results of the 2000 management evaluation on 13 state-owned companies.

President Park took up his position on Februay 11 last year, and now has to leave his office with his three-year term uncompleted by the government`s decision. Park who was born in Jin-Do, Chonnam and graduated the Chosun University, has been a politician affiliated with the ruling party, successively servicing the various political posts such as the director of the central political training institute, the chairperson of the Dongjak Gap district party chapter, and an executive member of the party.

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It is for the first time that the government reprimanded the president of the state-owned company through the review of the operating results. The government had thrown out the presidents of 6 state-owned companies such as the Korea Coal Corporation , the Korea Water Resources Corporation, and the Korea National Housing Corporation, because of the poor operation results, in last March.

Kim Kyung Sup, the assistant minister of the government reform office of the MPB, said, `` among 13 state-owned companies, the Korea Coal Corporation, the Korea Resources Corporation, and the Korea National Housing Corporation were evaluated as having poorly performed. Among these three companies which have shown the poor performance, the presidents of the Korea National Housing Corporation and the Korea Coal Corporation were already replaced, and thus the government decided to release president Park of the KRC from the office``.

Assistant minister Kim explained that ``the government`s decision has been made under the principle to reprimand 3 companies which have shown the bad operation performances. Even though president Park`s endeavors under the difficult management environment could be recognized, it was inevitable to dismiss him in order to establish the principle of the `responsible management` ``.

Meanwhile, the MPB announced yesterday the review results of the 2000 management evaluation on 13 state-owned companies. According to the result, the Korea Electric Power Corporation ranked the first place with 82.21 point, and the Korea Land Corporation and the Korea Highway Corporation followed respectively with 81.87 point and 81.68 point.

On the other hand, the Korea Coal Corporation ranked in the last place with 70.59 point. The review team evaluated other companies as follows; the Korea Resources Corporation in the 12th (73.47 point), the Korea National Housing Corporation in the 11th (76.39 point), the Korea National Oil Corporation in the 10th (77.13 point), and the Agricultural and Fishery Marketing Corporation in the 9th (77.59 point)

This review has been executed on 13 state-owned companies for three months from the middle of March by the management evaluation team comprised of 33 experts such as the professors, the accountants, and the representatives of the civic organizations, led by prof. Oh Yeon-Chun, the head of the evaluation team.

The MPB plans to make the final confirmation of the review results through the decision of the steering committee of the state-owned institutions, and to report to President Kim Dae-Jung and the National Assembly.

Choi Young-Hae moneychoi@donga.com