Checking Organizational Behavior and Work Methods... Midterm Survey Results to Be Announced in August
[Asia Economy Reporter Kim Min-young] The Ministry of Land, Infrastructure and Transport (MOLIT) will form a public-private joint task force (TF) to develop a high-intensity innovation plan for its 28 affiliated agencies. Although MOLIT received innovation proposals from the 28 public institutions under its jurisdiction, it judged that the submitted plans alone were insufficient to reform deeply rooted malpractices. Through the public-private joint TF, MOLIT plans to verify the organizational behaviors and work methods of the 28 affiliated agencies and disclose the results in August.
On the 5th, at a back briefing related to the 'Follow-up Measures on Self-Innovation Plans of Affiliated Agencies' held at the Government Seoul Office, Minister of Land, Infrastructure and Transport Won Hee-ryong stated, "We will prepare solutions for issues such as the way each public institution carries out its core tasks, monopolistic unfair practices, and cartels involving vested interests," adding, "We will form a public-private joint TF and establish innovation tasks and methods by August."
Previously, on the 23rd of last month, MOLIT instructed the 28 affiliated public institutions to submit high-intensity self-innovation plans. Accordingly, affiliated public institutions such as Korea Land and Housing Corporation and Korea Railroad Corporation submitted their self-innovation plans to MOLIT. The plans included about 500 tasks such as freezing personnel quotas, canceling new purchases of office buildings, selling non-core assets, and reducing operating expenses.
However, after reviewing the submitted innovation plans, Minister Won Hee-ryong evaluated that they mainly focused on management and finance, and did not properly include innovation measures addressing chronic issues in public institutions such as vested interest involvement through subsidiaries and reemployment after retirement.
Minister Won criticized the innovation plans, saying, "These plans include some improvements for management efficiency and financial soundness, but lack awareness of whether the institutions are performing their core missions fairly and transparently," and added, "They are insufficient to reform the deeply rooted malpractices of institutions, such as various unfair and unethical acts arising from the monopolistic status of public institutions."
Accordingly, MOLIT will form a public-private joint TF to verify ▲whether public institutions are faithfully performing their core tasks or indiscriminately expanding their work into the private sector, ▲whether they conduct their work through fair and transparent procedures, and ▲whether there are unfair practices using monopolistic status or cases of reemployment through subsidiaries.
Minister Won pointed out, "For example, LH's main functions are housing supply and residential welfare, and it holds exclusive authority over all regulations such as land expropriation rights. However, if the organizational atmosphere and structure that neglect land for years after purchase or fail to take proactive measures related to housing development projects are not broken, it cannot fulfill its core duties."
He also stated that tasks within public institutions that can be transferred to the private sector will be handed over, and competition will be introduced if necessary. He explained, "We will transfer data businesses and others with monopolistic status to the private sector and introduce competition."
Regarding LH’s organizational restructuring, he said, "We will reach an overall conclusion through a service contract by the end of the year," and added, "Until August, the main focus will be on verifying the organizational behaviors and business methods of LH and other affiliated public institutions."
Minister Won acknowledged that the continuous problem of lax management in public institutions also reflects on MOLIT, which supervises and corrects these agencies. He said, "I deeply feel the responsibility of MOLIT as the supervisory body for public institutions being subject to such criticism and reform," and pledged to prepare high-intensity regulatory innovation plans not only for public institutions but also for MOLIT itself.
MOLIT plans to disclose interim investigation results of the verification conducted by the public-private joint TF by August at the latest.
Minister Won stated, "We will prepare to report to the public by August," and added, "Without incentives and penalties, effectiveness is lacking, so public institutions found with problems will be subject to intensive audits and referrals for investigation."
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
