South Korea’s Ministry of Finance has slammed the performance of 18 State-run companies, saying their record was “lacklustre” or “extremely lacklustre” and ordering them to cut the bonuses of executives.
Bottom of the heap were four, including the Korea Railroad Corporation, which received the “extremely lacklustre” label.
South Korea’s State-run utility firm, Korea Electric Power Corporation (KEPCO) was among the companies that received a lacklustre grade.
It reported a record operating loss of ₩32.63 trillion ($A37.73 billion), more than quadruple from a year earlier due to limited electricity rate rises amid high inflation and an economic slowdown.
In an effort to address its financial woes, the KEPC introduced a set of reform measures, such as property sales, restructuring overseas businesses and freezing workers’ wages.
The Government has been making efforts to tighten the belts of public firms amid economic uncertainties.
Minister for Finance, Choo Kyung-ho said the evaluation was primarily aimed at assessing the progress made by public firms in restructuring their roles, structures, workforces and budgets — a key objective of the Government.
“The Government is especially focused on checking the fiscal health of the firms to address public concerns,” Mr Choo said.
He said there was a possibility that the heads of organisations that had received lacklustre grades for two consecutive years would be dismissed.
Seoul, 18 June 2023
