[Editorial] Ways to Fairly Feel up CEO Positions of State-run Companies

State-run business entities and government agencies are notorious for mismanagement and inefficiency. At the core of the problem lies the appointment of former government officials as heads of these organizations, and what South Koreans call "Parachute Promotions." These promotions have caused considerable damage to the whole nation. First, those appointed to higher positions do not know very much about the organizations they take control of. Second, labor union opposition has frequently halted normal business operations, resulting in mismanagement and wasted tax money. The Blue House announced that it would revamp the promotion system. If that decision had been made to correct the bad legacy, it would give us much hope.

Some people, however, cast doubt on the real intent. They worry that, in the name of reform, the Blue House is trying to give rewards to those who contributed to President Roh`s taking office. In fact, the ruling Millennium Democratic Party demanded that the Blue House appoint hundreds of party members to state-run companies. Moreover, quite a number of those belonging to the inner circles of power are pining for these golden-opportunity jobs.

President Roh once said that a president`s appointment should not be deemed ‘parachuting’ all the time. The remark may be construed in a wrong way. Principally, it is correct but some people take his word as an excuse for future promotions.

As of last year, state-run enterprises employed 200,000 workers and commanded 100 trillion won of the total national budget. They occupy a large share of our economic structure. That is why we need excellent CEOs for those companies. If important CEO posts are filled with former politicians, we can forget about transparency and specialized management. Eventually, we will also have to give up hope on restructuring those companies and enhancing their competitiveness.

In developing the announced new promotional system, it is vital to foil any political pressure. If necessary, an "outsider" should be appointed only when the new system is able to screen out ineligible candidates.

Whatever the new system may be though, it should not be a rubber stamp justifying "political decisions." KBS chairman said, "[Roh] would not go out to find good guys. He just looks around. That is the problem," indicating the agony that he had gone through with regard to his recommendation of Seo for the CEO position at KBS, which ended up in the resignation of the new president.