Financial Performance Indicators Divided Ratings... Choo Kyung-ho Recommends Public Enterprises with Rapid Debt Ratio Increase to Return Performance Bonuses

2022 Public Institution Management Performance Evaluation Results

The government evaluated the management performance of 130 public enterprises and quasi-governmental institutions, resulting in 19 rated Excellent (A), 48 Good (B), 45 Average (C), 14 Poor (D), and 4 Very Poor (E). The number of Poor ratings decreased by one compared to the previous year, while Very Poor increased by one. No public institution received an Outstanding (S) rating.

On the 16th, the Ministry of Economy and Finance held the 8th Public Institution Management Committee meeting chaired by Deputy Prime Minister and Minister of Economy and Finance Choo Kyung-ho to review and approve the "2022 Public Institution Management Performance Evaluation Results and Follow-up Measures."

Deputy Prime Minister Choo stated regarding this evaluation, "The increased weight of financial performance led to a significant downgrade in ratings for institutions with deteriorated financial conditions, and energy public enterprises generally saw their ratings decline." He added, "We strictly evaluated the performance of public institutions, moving away from the past practice of leniency."

Among public enterprises, five received an A grade: Korea Water Resources Corporation, Korea Marine Environment Management Corporation, Ulsan Port Authority, Korea Expressway Corporation, and Korea Western Power Co., Ltd. Conversely, Korea Electric Power Corporation and Housing and Urban Guarantee Corporation (HUG) received a Poor (D) rating.

The financial performance indicators had a major impact on determining the ratings. Public enterprises with worsened financial conditions generally experienced rating downgrades. Nine institutions are subject to dismissal recommendations for their heads, either due to receiving a Very Poor (E) overall rating or Poor (D) rating for two consecutive years, which is a higher number compared to previous years.

Deputy Prime Minister Choo said, "For public enterprises that have recorded large net losses or sharply increased debt ratios, we will restrict or recommend the return of performance bonuses," and added, "We will continue policy efforts this year to ensure that innovation policies for public institutions yield tangible results."

Deputy Prime Minister for Economy Choo Kyung-ho is delivering opening remarks at the Public Institution Management Committee held on the 16th at the Government Seoul Office in Jongno-gu, Seoul. Photo by Dongju Yoon doso7@