[2020 National Audit] "Mineral Corporation Struggling with Debt, Fruitless Performance Bonus Celebration"

Capital Erosion, Debt Increase, and Low Management Ratings Yet Annual Growth Since 2018
Kang Hoon-sik "Despite Tax-Funded Company's Worsening Conditions and Low Performance, Bonuses Are Paid"

Exterior view of the Korea Resources Corporation headquarters. (Photo by Korea Resources Corporation)

[Asia Economy Reporter Moon Chaeseok] It has been revealed that Korea Mineral Resources Corporation has not only fallen into a state of capital erosion but has also increased the payment of employee performance bonuses every year since 2018, despite its mounting debt.

According to the 'Financial Status and Employee Performance Bonus Status' data submitted by the corporation to Kang Hoon-sik, a member of the National Assembly's Industry, Trade, Small and Medium Enterprises Committee from the Democratic Party of Korea, on the 20th, the corporation spent ▲737.75 million KRW on employee performance bonuses in 2018 ▲2.45648 billion KRW last year ▲3.0127 billion KRW up to August this year.

Source: Office of Kang Hoon-sik, Democratic Party of Korea

The corporation's assets steadily decreased from 4.1518 trillion KRW (2017) → 3.9598 trillion KRW (2018) → 3.9342 trillion KRW (last year) → 3.2866 trillion KRW (this year).

Liabilities have continuously increased from 5.4341 trillion KRW (2017) → 5.9241 trillion KRW (2018) → 6.4133 trillion KRW (last year) → 6.6517 trillion KRW (this year).

The government management evaluation, which served as the basis for performance bonus payments, was confirmed to be C (2016), D (2017), C (2018), and C (last year).

Assemblyman Kang pointed out, "The cost to revive the corporation, which is severely capital impaired, is astronomical, but the corporation is ignoring this and holding a performance bonus feast without results," adding, "If the corporation continues such reckless management, efforts for self-reform such as consolidation will ultimately fail."

Financial status of Korea Resources Corporation over the past 5 years. (Data provided by Kang Hoon-sik, Office of the Democratic Party of Korea)