People's Solidarity for Participatory Democracy: "KEPCO and Subsidiary Retirees Reemployed Like Mutual Aid"

[Asia Economy Reporter Song Seung-yoon] Korea Electric Power Corporation (KEPCO) and its subsidiaries' retirees have been found to easily re-employ at other parent or subsidiary companies or related firms after retirement, according to a recent investigation.

The People's Solidarity for Participatory Democracy's Administrative Oversight Center released a report on the 11th analyzing employment restriction and approval review results for retirees from KEPCO, Korea Hydro & Nuclear Power (KHNP), and Korea Electric Power Technology from January 2016 to May this year.

According to the report, out of 81 employment review requests over five years and five months, the Government Ethics Committee issued employment restriction or disapproval decisions in 11 cases (13.6%). Among the remaining 70 cases, 42 were approved because the work before retirement and the prospective employer were judged to have no close business relevance. The other 28 cases involved business relevance but were approved due to recognized exceptions.

There were also 21 cases of re-employment at KEPCO or its subsidiaries. Among 13 KEPCO retirees, 8 were re-employed at KEPCO or its subsidiaries; among 38 KHNP retirees, 11; and among 19 Korea Electric Power Technology retirees, 2 were re-employed at KEPCO or its subsidiaries.

There were also 7 cases where KHNP and Korea Electric Power Technology retirees applied for review to be employed at companies or institutions that had signed or were about to sign contracts for goods, services, or construction work with these companies, and received approval. Upon re-examination of cases where the Government Ethics Committee judged no business relevance or recognized exceptions, 5 decisions appeared inappropriate.

Additionally, it was confirmed that 15 KHNP retirees and 3 Korea Electric Power Technology retirees were employed arbitrarily at subsidiaries or related companies without undergoing review. Post-review results showed employment restrictions were imposed in 7 out of 15 KHNP cases and 2 out of 3 Korea Electric Power Technology cases.

The People's Solidarity for Participatory Democracy stated, "There is doubt whether the employment restriction system is being operated as intended, as higher-ranking officials tend to receive exceptions and re-employ," and criticized, "The Government Ethics Committee should conduct employment reviews more strictly and actively disclose review materials and decision grounds."