On June 20, 2025, Im Gyeong-geun, the 2nd Vice Minister of Financial system and Finance, held a major briefing on the Authorities Seoul Advanced in Jongno-gu, Seoul, unveiling the 2024 public establishment administration analysis outcomes. This annual analysis, carried out below the Ministry of Financial system and Finance’s supervision, assessed the operational and monetary efficiency of 87 public enterprises and quasi-governmental establishments throughout South Korea. The announcement drew consideration not just for its complete evaluation but additionally for the consequential follow-up actions deliberate for underperforming businesses.
The analysis course of, which started in February 2025, concerned a devoted staff of 100 non-public sector specialists who meticulously reviewed the administration efficiency of 32 public enterprises and 55 quasi-governmental establishments over 4 months. Their work included exterior verification procedures to make sure accuracy and equity. The analysis balanced effectivity metrics resembling monetary soundness and productiveness with public duties, together with social accountability and the execution of presidency insurance policies like worth and housing stability.
Notably, no establishment achieved the very best “superior” (S) grade this yr, persevering with a development from the earlier yr. In line with Im Gyeong-geun, “An S grade requires perfection in all points together with main tasks, administration efficiency, and social accountability,” emphasizing the excessive requirements anticipated of public establishments. He expressed hope that future evaluations would see establishments absolutely assembly their roles to realize this coveted grade.
Of the 87 establishments evaluated, 15 earned the “glorious” (A) grade, a gradual quantity in comparison with the earlier yr. Amongst these have been 5 public enterprises resembling Korea Hydro & Nuclear Energy and Korea Electrical Energy Company (KEPCO), together with ten quasi-governmental establishments together with the Nationwide Well being Insurance coverage Service and the Nationwide Pension Service. Gwak Chae-gi, head of the Public Enterprise Evaluation Crew, highlighted KEPCO’s constructive monetary enhancements final yr and credited the abroad tasks of vitality sector public enterprises as “a major revolutionary issue” on this yr’s analysis.
In the meantime, 28 establishments obtained a “good” (B) grade, together with Korea Gasoline Company and Korea Expressway Company, whereas 31 establishments have been rated “unusual” (C), resembling Kangwon Land, Incheon Worldwide Airport Company, and Korea Racing Authority. The analysis additionally recognized 13 establishments with “poor” (D) or “very poor” (E) grades, signaling severe efficiency issues.
4 establishments—Korea Mine Rehabilitation and Mineral Sources Company, Korea Tourism Group, Korea Atmosphere Business & Know-how Institute, and the Korea Put up Monetary Growth Institute—have been assigned the bottom “very poor” (E) ranking. Gwak Chae-gi defined that Korea Mine Rehabilitation and Mineral Sources Company’s core tasks, targeted on useful resource safety and regional self-reliance in mining areas, suffered from ineffective monetary restoration administration. Equally, Kim Chun-soon, head of the Quasi-Governmental Institution Evaluation Crew, pointed to management deficiencies on the Korea Tourism Group as a think about its declining scores. The Korea Atmosphere Business & Know-how Institute confronted extra challenges, with its head suspended and arrested amid allegations of analysis fund misuse, notably concerning personnel bills, and an absence of proactive response or concrete corrective plans.
Among the many 9 establishments receiving a “poor” (D) grade have been outstanding names just like the Housing & City Assure Company (HUG), Grand Korea Leisure (GKL), and the Korea Broadcasting Promoting Company (KOBACO). The federal government plans to suggest the dismissal of HUG’s President Yoo Byung-tae, who has obtained a “poor” grade for 2 consecutive years, fulfilling the factors for such motion. As well as, 14 establishment heads and three standing auditors will face formal warnings for his or her establishments’ underperformance.
Warnings aren’t restricted to poor administration alone. Ten establishment heads are slated to obtain warnings attributable to main accidents, together with fatalities, occurring inside their organizations. These embrace leaders from Korea Nationwide Railway, Korea Freeway Company, KEPCO, Korea Hydro & Nuclear Energy, Korea Land & Housing Company, and others. The federal government expects these establishments to submit security enchancment plans promptly.
Efficiency bonuses shall be awarded on a differential foundation to establishments with an general grade of “unusual” (C) or increased. Public enterprises’ establishment heads might obtain bonuses starting from 0% to 100% of their primary wage, standing administrators and auditors from 0% to 80%, and workers from 0% to 250%. Quasi-governmental establishments have barely decrease most bonus charges. Moreover, six establishments which have adopted job-based pay techniques will obtain an additional 0.1 share level of complete personnel bills in 2026 as job-based pay assets.
Conversely, the 13 establishments graded “poor” or “very poor” will face cuts normally working bills, be required to submit administration enchancment plans, and endure consulting to deal with deficiencies. Public enterprises that posted internet losses consecutively in 2023 and 2024, or whose losses have elevated, will see a 25% discount in government efficiency bonuses. Executives of public enterprises with internet losses in 2024 are additionally inspired to voluntarily return 25% of their bonuses.
The audit efficiency analysis, carried out for 58 establishments whose standing auditors or audit committee members served for at the least six months, revealed no “superior” or “very poor” grades. 4 establishments obtained “glorious” (A) scores, 30 have been rated “good” (B), 20 “unusual” (C), and 4 “poor” (D). Establishments resembling GKL, Korea Mine Rehabilitation and Mineral Sources Company, and KOBACO have been amongst these receiving “poor” audit grades, which contributed to warnings for his or her standing auditors.
Within the agricultural sector, the Livestock Merchandise High quality Evaluation Institute’s administration ranking dropped by one grade to “unusual” (C), whereas key establishments like Korea Racing Authority and Korea Rural Neighborhood Company failed to enhance their grades, remaining at “unusual” (C) for administration efficiency. The Korea Agro-Fisheries & Meals Commerce Company maintained a “good” (B) grade in administration however obtained a “poor” (D) ranking in audit efficiency, attributed to the expiration of the auditor’s time period.
Im Gyeong-geun emphasised the excellent nature of the analysis, stating, “All points together with main tasks, administration efficiency, and social accountability should be good to attain an S grade.” He underscored the federal government’s dedication to making sure public establishments fulfill their roles successfully and responsibly, reflecting the general public curiosity and nationwide priorities.
As South Korea continues to rely closely on public establishments for important companies and coverage implementation, the 2024 analysis outcomes function an important barometer of their efficiency. The federal government’s agency stance on accountability, together with dismissal suggestions and performance-based bonuses, alerts an ongoing drive towards transparency, effectivity, and improved public belief.
