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May. 17  2024
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Gov't to Cut 9,000 Public Jobs This Yr

A total of 9,000 employees on the payroll of state-run enterprises will be let go this year in accordance with the government's stepped-up public sector restructuring plan.

Source  :  Korea Times

A total of 9,000 employees on the payroll of state-run enterprises will be let go this year in accordance with the government's stepped-up public sector restructuring plan.

According to officials of the Ministry of Planning and Budget yesterday, as part of efforts to speed the restructuring of the public sector, which is under fire for bloated payrolls and gross inefficiencies, the workforce rationalization process that is set to be completed by next year will be advanced to be completed this year.

The original plan has it that a total of 41,000 employees in state-run enterprises, about one-fourth the total workforce, would be released over three years starting in 1999. By the end of last year, about 32,000 have been let go, leaving 9,000 workers to be released for 2000 and 2001.

``Rather than sticking to the original plan, the ministry is planning to meet the rationalization target by the end of this year, one year earlier than scheduled,'' a senior ministry official said.

Affected by this workforce cut are 13 government-invested corporations, such as Korea Electric Power Corp., and eight government-funded corporations including Korea Telecom and Korea Tobacco and Ginseng Corp.

Once the workforce rationalization plan is completed, the ministry is set to concentrate on the ``software'' aspect of the public sector reform, such as nhancing productivity and fostering efficient management.

Also planned is the opening of senior posts at public corporations to civilians as well as some senior posts in the central government and to expand contract-based employment among senior managers of public corporations.

The ministry is also planning to organize an audit committee comprising members of the board of directors of public corporations to bring more checks to their management, ministry officials said.

However, the ministry's plan to implement the workforce cut earlier than scheduled is likely to face a stiff challenge from the unions that see less need to reduce the payroll, as the plan was drawn up amid a fast-rebounding economy.

The public sector has been criticized for the lack of progress in self-reform compared with three other sectors _ big business, financial institutions and the labor market. The ministry's latest move appears intended to appease the public outcry and finish the workforce reduction as soon as possible, believing it would face a stronger opposition should the process be dragged on.

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