[Asia Economy Reporter Moon Jiwon] Korea Land and Housing Corporation (LH), which caused controversy due to land speculation incidents involving its executives and employees, received a 'D (Poor)' grade in the government's public institution management evaluation. Accordingly, the LH head and executives had their performance bonuses fully cut.
On the 18th, the Ministry of Economy and Finance held the 7th Public Institution Management Committee chaired by Deputy Prime Minister and Minister of Economy and Finance Hong Nam-ki, where they reviewed and approved the 2020 public institution management performance evaluation results and follow-up measures including this matter.
By indicator, LH received the lowest grade, E (Very Poor), in ethical management. It also received a D (Poor) grade in key indicators such as leadership, organization and personnel, and disaster and safety. By category, LH received a D grade in the 'Major Business' category but a C (Average) grade in the 'Management' category.
The evaluation team applied stricter standards to the ethical management field than ever before, prompted by this year's LH scandal. LH had received an A (Excellent) grade in this evaluation last year.
As a result of this evaluation, the government decided to fully cut the performance bonuses of the LH head and executives. For employees, the payment of performance bonuses will be completely suspended until the investigation results are finalized, and the decision on payment will be made based on the investigation outcome.
In particular, if additional misconduct by LH is revealed, the evaluation results for the relevant year will be revised, and performance bonuses already paid to executives and employees will be reclaimed.
The government plans to use this LH misconduct case as an opportunity to improve the system by strengthening the evaluation content and criteria for ethical management in the future.
The score for the ethical management indicator (currently 3 points) will be significantly increased, efforts and achievements to prevent conflicts of interest in public institutions will be additionally reflected in detailed evaluation contents, and illegal or serious violations will be scored zero in the ethical management indicator.
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
