Public organizations to lower debt level by 2017Updated: 2014-04-30 15:59:37 (KST)
Public organizations in Korea have long been criticized for their ballooning debts and excessive employee benefits -- and the government is determined to end such practices.
They've finalized a plan to sell off their non-core assets, slash exorbitant benefits and streamline the overall business structure.
As the first step to overhaul nearly 300 public institutions, the finance ministry has ordered them to reduce their debt by some 50 billion U.S. dollars over the coming years.
The goal is to lower the combined debt level of these organization to 187 percent by 2017, down 34 percentage points from 2012.
The government will conduct an interim evaluation of their debt-reduction efforts in the second half of this year.
If the organizations' progress is deemed unsatisfactory, their CEOs could be replaced and the salaries of their employees frozen.
Welfare benefits for employees could also be axed.
Welfare spending at the institutions will be slashed by an average of 700 dollars per person a year -- down a quarter from last year.
The measures are part of a three-year economic innovation plan announced by President Park Geun-hye in February to "normalize" the public sector.
Song Ji-sun, Arirang News.
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