[Exclusive] Lee Administration Puts Focus on 'Pragmatism' in Public Institutions... New Keyword Emerges: 'Contribution to Economic Growth'

Focus on Growth and Pragmatism in Public Institution Philosophy
Major Revision of Public Institution Management Evaluation Guidelines Expected

The Lee Jaemyung administration is set to incorporate a 'pragmatic' approach into the philosophy of public institution management. The key focus is on 'contribution to economic growth.' Unlike the Moon Jaein administration, which prioritized 'public interest' and 'social responsibility,' the Lee administration appears poised to center its evaluation of public institutions on whether they have made tangible contributions to national economic growth through efficient operations. As a result, it is expected that the evaluation criteria for public institutions will change starting this year, the very first year of the new administration.

According to relevant ministries on July 4, the National Policy Planning Committee is reviewing the direction of public institution management with this approach at its core. The government is focusing on growth and pragmatism, and is moving toward evaluating whether public institutions have fulfilled their fundamental roles and contributed to economic growth. President Lee's pragmatic philosophy is expected to be consistently reflected in the management evaluations of public institutions.

A government official explained, "Although the detailed direction has not yet been finalized, it is unlikely that public institutions will be highly rated for expanding jobs or emphasizing social responsibility." On July 1, Cho Seungrae, spokesperson for the National Policy Planning Committee, stated during a briefing, "There have been discussions to ensure consistency and accountability in public institutions," and added, "We will prepare measures to ensure that public institutions can work efficiently in line with their founding purposes."

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Ministry of Economy and Finance Likely to Push for Major Overhaul of Management Evaluation Guidelines

Accordingly, the Ministry of Economy and Finance is expected to begin work on a major revision of the management evaluation criteria for public institutions. Around September to October, the ministry is likely to convene the Public Institution Management Committee to review and approve the revised '2025 Public Institution Management Evaluation Guidelines.' The evaluation criteria for public institutions for this year were finalized last year. Typically, changes to the evaluation criteria are minor, but with the inauguration of the new administration and a shift in evaluation philosophy, a comprehensive revision is anticipated this year.

Successive administrations have reflected their governing philosophies in public institution evaluations. The Lee Myungbak administration pursued mergers, closures, and privatization of public institutions, strengthening performance-based and quantitative evaluation indicators. The Park Geunhye administration introduced the 'normalization of public institutions' initiative, implementing performance-based pay and focusing on efficiency indicators such as financial performance and management control.

Under the Moon Jaein administration, items related to the performance-based pay system introduced during the Park administration were abolished. Additional points were awarded to public institutions that were employment-friendly, such as those that converted non-regular workers to regular positions and created jobs. The Yoon Sukyeol administration increased the weighting of financial performance while reducing the emphasis on public interest items such as social responsibility.

The Lee Jaemyung administration was initially expected to place less emphasis on financial results and productivity, and to increase the importance of public interest and social value, similar to the Moon Jaein administration. However, with pragmatism and growth now at the forefront, it appears that new indicators, distinct from those of the Moon administration, will be introduced. National policy priorities that President Lee has emphasized, such as 'artificial intelligence (AI)' and 'stabilizing livelihoods,' are expected to be included as evaluation items.

Meanwhile, the National Policy Planning Committee is considering aligning the terms of the president and the heads of public institutions. This measure aims to resolve the recurring controversy over 'entrenched appointments' during each change of administration and to enhance the consistency and accountability of public institution management. Changes in organizational structure are also being considered. Currently, public institution policy is overseen by the Public Policy Bureau of the Ministry of Economy and Finance, but the committee is reviewing whether to restructure the functions of the Public Institution Management Committee in connection with the ministry's organizational reform.