42 % under DJ Government while 27% under YS

It is reported that the practices of “parachuting” outsiders into the president jobs in state-owned businesses took place more often under the Kim Dae-jung (DJ) government than under the previous administration.

According to Donga Ilbo’s economy department’s analysis of the Ministry of Planning and Budget’s report on presidents of 20 state-run companies, under the Kim Dae-jung government, more politicians and high-ranking officials with military background were appointed as president of those companies. In addition, almost half of those presidents come from Cholla province.

In 18 out of the 20 state-owned corporations, presidents with political and military career account for 41.9 percent, up from 27.0 percent under the Kim Young-sam (YS) government.

In particular, the practice of appointing those with political and military career as president for state-owned corporations was under criticism because they have less expertise about operation of business than those who come from competent or economy-related government agencies.

Among the presidents of the 18 state-owned companies, those from competent authorities account for 16.3 percent, a sharp drop from the YS administration’s 32.4 percent. The rate of those from non-competent authorities is 21.6 percent, down from 20.9 percent.

During the DJ and YS terms each, in only 4 cases out of the 18, insiders were promoted to the top post.

During the YS term of office, 37 presidents were newly appointed in the 18 state-owned corporations, while under the DJ government, 43 new presidents were appointed. Therefore, there were more cases of insiders promoted to the president job under the YS government than under DJ.

Among the 43 presidents in the 18 state-run corporations, who were appointed during the DJ term, 11 come from South Cholla province, followed by 8 from North Cholla, 6 from Chungcheong, 4 from South Gyeongsang, 3 from North Gyeongsang, Seoul and Gyeonggi, 2 from Gangweon and Ulsan, and 1 from Incheon. Therefore, those from Cholla province make up 44.2 percent.

Meanwhile, the 37 presidents appointed during the YS term consisted of 10 from South Gyeongsang, 6 from Seoul, 3 from Gyeonggi, North Gyeongsang and Cholla, 2 from Chungcheong, and 1 from Gangweon, Gwangju, Busan, and Jeju. According to this, 37.8 percent of them come from Gyeongsang province, Busan and Daegu.

Kwang-Am Cheon Jin-Hup Song iam@donga.com jinhup@donga.com