High Officials Get New Pay Grades

Starting from July, high-ranking government officials in Korea will be subjected to a new policy in which the salaries of high ranking officials ranging from class one to three vary with their work performance. The new system is expected to significantly shake the senior civil servant sector which has been regarded as stable lifetime jobs.

The Civil Service Commission, which is under the Ministry of Government Affairs and Home Administration, stated on May 30 that the changes to 11 policies relating to high officials and a more open human resources management system were all passed during the State Council.

The policy for high-ranking officials was passed by the National Assembly last December, and will commence on July 1 according to the National Law for Public Officials.

About 1,500 public servants are part of the high-ranking official list, including class 1 to 3 section chiefs to director level officials at the central administration agencies, as well as officials at district administration offices and district education agencies.

With the introduction of the new policy, officials in the same class may be subject to salary differences of up to 9.6 million won per year according to their evaluations.

In addition, public officials in the high-ranking official group will have to compete with officials from other ministries, and bad grading may lead to dismissal. Officials may also face dismissal if they are not assigned to a specific duty for more than two years.

On another note, 20 percent of sector chief positions may be filled with open positions, and civil servants from other ministries may return to their original position if they choose to do so.

A source from the Civil Service Commission said, “This is a chance to alter the civil servant system which has continued in its original form since the Republic of Korea was established in 1948, to that which centers on assignments and work performances,” and added, “from now on, we plan to expand the performance-based pay system.”

The Civil Service Commission will pass or alter 16 relevant ordnances and policies next month, concluding the senior official policy.

Some critics voice their concerns that this policy will not remedy the “base pay system” system at once, but may lead to other side effects.

* Policy for high-ranking officials: A base pay system for high ranking officials under the current system of class 1 to 3 (section chief to director levels) will now be altered to a performance-based pay system. The personnel management of high-ranking officials were previously under the management of each ministry, but will now be conducted by the central government.

Tae-Hun Hwang Min-Hyuk Park beetlez@donga.com mhpark@donga.com