Ministry of the Interior and Safety Announces Local Public Enterprise Management Evaluation Results
20 Out of 262 Institutions Rated 'Ga' Grade for Excellence
Management Diagnosis and Improvement Orders Issued for 7 Underperforming Institutions
#. Jeonnam Development Corporation has taken the lead nationwide by promoting 1,000 units of the 'Jeonnam-style Ten Thousand Won Housing' targeting youth and newlyweds, actively responding to low birth rates and regional extinction while also implementing structural reforms such as reorganizing deficit projects, achieving a record-high net profit of 57.9 billion KRW. Additionally, it attained the lowest debt ratio (33.16%, down 11.04 percentage points from the previous year), earning high recognition for its management performance and ranking at the top in the urban development category.
#. Seoul Metropolitan Agricultural and Marine Products Corporation achieved four consecutive years of surplus and recorded the highest sales (92.7 billion KRW) and net profit (6.6 billion KRW) since its establishment through structural reforms such as integration of related departments and innovation including full digitalization of agricultural product distribution and logistics. Due to these achievements, it received the highest rating in the specific corporation and foundation category.
Local public enterprises that have actively improved their organizational structure for management efficiency and responded to low birth rates and regional extinction received top grades in management performance evaluations.
On the 6th, the Ministry of the Interior and Safety held the 'Local Public Enterprise Policy Committee' to review and approve the 2023 local public enterprise management performance evaluation results. This year, 262 local public enterprises (73 corporations, 85 foundations, 104 sewerage) were evaluated in two areas?management control and management performance?across more than 20 detailed indicators and were assigned to five grades (A to E).
On the 6th, the Ministry of the Interior and Safety held the 'Local Public Enterprise Policy Committee' to review and approve the 2023 local public enterprise management performance evaluation results. [Photo by Ministry of the Interior and Safety]
This evaluation focused on national agenda items such as ▲innovation of local public institutions ▲implementation of major public policies including responses to low birth rates and regional extinction ▲and organizational improvement through management efficiency. Notably, the response to the national challenge of low birth rates and regional extinction was separated as an independent indicator for the first time this year, increasing its evaluation importance.
As a result of the evaluation, it was found that the implementation of innovation plans in structural reform and financial soundness areas led to more efficient management systems and meaningful improvements in management performance among institutions. In fact, with the full-scale implementation of innovation tasks such as structural reform and strengthening financial soundness starting in 2023, overall management structure evaluation indicators improved compared to the previous year. Furthermore, despite high inflation and interest rates, management efficiency and key business performance indicators improved thanks to better operating income and other management results.
Among institutions, 20 received the highest 'A' grade, including those that proactively addressed the national crisis of low birth rates and those that improved management systems and performance through innovation tasks such as structural reform. Daegu Transportation Corporation in the urban railway category, Jeonnam Development Corporation in the urban development category, and Seoul Metropolitan Agricultural and Marine Products Corporation in the specific corporation and foundation category ranked highest.
On the other hand, 36 institutions received lower grades of 'D' or below due to poor public service provision, financial performance, and key business outcomes. Incheon Metropolitan Sewerage received a 'D' grade due to increased violations of discharge water quality standards (from 0 to 29 cases), causing disruptions in public service provision, and its key business performance such as sewer dredging was the lowest within the same category. Gangwon Development Corporation also received a 'D' grade, showing the lowest scores within the same category in management structure indicators such as personnel, organization, and financial management, as well as government-recommended policy indicators.
According to the evaluation grades, heads of local public enterprises receive performance bonuses ranging from a maximum of 400% of their monthly salary to salary reductions, while employees receive bonuses ranging from 0% to a maximum of 200%, depending on the management evaluation results.
Following the evaluation results, the Ministry of the Interior and Safety confirmed seven institutions with urgent management improvement needs among the lower grades (D to E) as subjects for management diagnosis, and recommended improvements to five institutions with significant declines in specific indicators even if they were not subject to diagnosis. The management diagnosis targets include Gyeongnam Development Corporation, which showed problems in management systems such as a sharp increase in industrial accidents (from 0.67 to 13 cases) amid declining financial performance indicators like sales and operating profit ratios, and Jangsu Hanwoo Local Corporation, which saw a significant expansion in deficit (336.19%) compared to the previous year. Recommended institutions include Yeongdeungpo-gu Facilities Management Corporation, which experienced a sharp drop in 'Safety and Environment' scores (from 95.2 to 60 points, down 35.2) due to a surge in safety accidents (from 3 to 7 cases), and Hanam Urban Corporation, which saw a significant decline in key business performance scores (from 94.93 to 48.79 points, down 46.14) due to poor industrial complex sales performance.
The Ministry of the Interior and Safety plans to strengthen evaluations of efforts to overcome low birth rates and regional extinction and to revitalize regional economies through investment activation so that local public institutions can actively respond to national issues. Vice Minister Ko Gi-dong stated, "We will make this local public enterprise management evaluation an opportunity for local public enterprises to provide better services to the public," and added, "We will continue to conduct management evaluations that meet the demands of the times to build local public enterprises that the public can trust."
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