This Year, a Total of 347 Public Institutions... Avoided Designation by the Financial Supervisory Service

Deliberation and Resolution of the '2023 Public Institution Designation Plan' at the Public Institution Steering Committee

[Asia Economy Sejong=Reporter Kim Hyewon] This year, the number of public enterprises and quasi-governmental institutions will total 87, a decrease of 43 from the previous year. Other public institutions increased by 40 to 260. The Financial Supervisory Service avoided conversion to a public institution.

On the 30th, the Ministry of Economy and Finance held a Public Institution Management Committee meeting chaired by Deputy Prime Minister and Minister of Economy and Finance Choo Kyung-ho to review and approve the '2023 Public Institution Designation Plan' with these details.

This designation plan aims to newly designate institutions subject to the Act on the Management of Public Institutions (hereinafter referred to as the Public Institution Act) under Article 4 or Article 6 of the Act, and to cancel or change the type of designation for existing designated institutions.

Following the approval of the designation plan, a total of 347 institutions were confirmed as subjects under the Public Institution Act, a decrease of 3 from the previous year (350 institutions).

One institution (Korea Institute for Patent Technology Promotion) meeting the public institution designation requirements was newly designated, and four science and technology institutes were removed from the list of public institutions. Additionally, 43 institutions (4 public enterprises and 39 quasi-governmental institutions) were reclassified as other public institutions.

The Korea Institute for Patent Technology Promotion, which separated as an independent corporation in August last year from being an affiliated institution of the Korea Intellectual Property Information Service (an other public institution), was newly designated as it met the public institution designation criteria, including government support exceeding 50% of total revenue due to entrusted projects.

The four science and technology institutes (KAIST, GIST, DGIST, UNIST) were excluded from the public institution list. Deputy Prime Minister Choo explained, "This reflects the unique characteristics of institutions that have both research and higher education functions." Even after removal from designation, the Ministry of Science and ICT will continue to supervise general management such as organization and budget based on individual laws (such as the Korea Advanced Institute of Science and Technology Act).

The Ministry of Economy and Finance also applied, for the first time, the upgraded classification criteria for public enterprises and quasi-governmental institutions according to the public institution management system reorganized in August last year. Accordingly, 43 public enterprises and quasi-governmental institutions with fewer than 300 employees as of the end of last year were reclassified as other public institutions.

For these institutions, the management authority has shifted from the Ministry of Economy and Finance to the relevant ministries, expanding operational autonomy, while the supervisory authority and responsibility of the relevant ministries have been strengthened.

The Public Institution Management Committee maintained the designation deferral decision imposed on the Financial Supervisory Service in 2021, considering that all conditions for deferral are being properly fulfilled. The Ministry of Economy and Finance stated, "However, ongoing tasks will continue to be monitored until completion."