User:Chericoco320/Public institution in South Korea

It explains the Public institutions of the Republic of Korea.

Outline
Public institutions refer to a case designated by the Minister of Strategy and Finance from among corporations, organizations, and institutions, not the central or local governments. Public institutions may be designated as public institutions under Article 4 of the Act on the Operation of Public Institutions, however, under Article 4 of the same Act, institutions established for the purpose of mutual assistance, welfare promotion, improvement of rights and interests, or maintenance of business order among members, established by local governments and involved in their operation, and Korea Broadcasting System and Korea Education Broadcasting System cannot be designated as public institutions.


 * 1) An institution directly established under laws other than the Act on the Operation of Public Institutions and contributed by the government
 * 2) An institution whose government aid exceeds one-half of its total revenue
 * 3) An institution in which the government has a stake of 50/100 or more, or has a stake of 30/100 or more, and has virtually secured control over the policy decisions of the relevant institution through the exercise of the authority to appoint executives
 * 4) An institution in which the government and any of the above institutions have a combined stake of 50/100 or more, or 30/100 or more, and have virtually gained control over the agency's policy decisions through the exercise of executive appointment authority
 * 5) Any of the above institutions has a stake of 50/100 or more alone or in combination of two or more institutions, or has a stake of 30/100 or more to gain de facto control over the agency's policy decisions by exercising executive appointment authority
 * 6) An institution established by any of the above institutions and contributed by the government or the establishment agency

However, the scope of public institutions is often different due to the nature of laws. For example, the Public Information Disclosure Act includes the entire Korean government, including the National Assembly and the administration, and non-profit corporations that receive subsidies from the government, the Act on the Management of Public Records includes the Government of the Republic of Korea, and the Special Act on Balanced National Development includes central administrative agencies and their affiliated agencies. This document deals only with public institutions within the scope prescribed in the Act on the Operation of Public Institutions.

History
It was in March 1973 that the legislation of public institutions was first enacted. Prior to that, public institutions existed, but with the enactment of the Government Investment Institutions Management Act, regulations were first implemented in an integrated legal framework. At that time, government investment institutions were limited to companies that the government invested more than 50% of their capital, and 22 types were listed one by one in the enforcement ordinance of the same law. At that time, unlike now, the Korea Broadcasting System was also in the category of government investment institutions, but it was in November 1998 that it was excluded from the category of public institutions to ensure independence and autonomy.

In 1984, the existing law was abolished, and the Framework Act on the Management of Government Investment Institutions was enacted instead, and the scope of government investment institutions was also changed to companies that the government invested more than 50% of the paid-in capital. And to establish a responsible management system, the autonomous operation of investment institutions was guaranteed, and on the other hand, a government investment institution management evaluation committee headed by the Minister of Economic Planning was formed for management evaluation. And since then, it has deviated from the method of listing government investment institutions one by one in the Presidential Decree.

On the other hand, some of the institutions or groups that receive contributions and subsidies from the government, or those that are directly entrusted with business or granted exclusive business rights by the government, are classified as government-affiliated institutions, and systematically manage them and implement the management evaluation system, and in April 2004, 「Basic Act on Management of Government-affiliated Agencies」 was enacted to promote efficient operation and responsible management system.

However, as the categories of public institutions were scattered and complicated into government enterprises, government investment institutions, and government-invested companies, it was necessary to integrate and manage them, accordingly, in January 2007, the two existing laws were abolished, and the Act on the Operation of Public Institutions was newly enacted. The Act on the Operation of Public Institutions was enacted to determine matters necessary for the operation of public institutions, such as the scope, classification, evaluation, and supervision system, to contribute to the promotion of public institutions' services by establishing a self-responsible management system, as a result, the current classification system of public institutions was completed.

In April 2009, in order to increase the management transparency of public institutions and to enable personnel and budgetary measures to be taken in the event of poor management, the subject of management disclosure was expanded, and personnel and budgetary measures were taken in cases where false management performance reports were prepared, and it stipulates that audit results of public institutions must be submitted to the National Assembly.

In January 2010, accounting audits were strengthened by appointing accounting auditors and reviewing settlement statements through this, and a management evaluation team was formed to efficiently evaluate management performance. In May of the same year, public institutions were required to establish mid- to long-term financial management plans, such as if their assets were more than KRW 2 trillion, to reduce the side effects of increasing the public burden and shrinking private economic activities.

In January 2014, the National Assembly strengthened control and management by mandating the National Assembly to submit a mid- to long-term financial management plan, and in September 2016, a preliminary feasibility study was conducted on new investment projects and capital investment by public institutions. On the other hand, in order to strengthen the integrity of executives and employees, the application of bribery crimes was subject to the agenda as public officials.

In September 2018, a revision to the Act was passed to ensure the creation of a creative environment of R&D institutions, part of other public institutions shall be subdivided into institutions, etc. for the purpose of R&D, and to prepare regulatory provisions such as investigation and audit, suspension of duties, and audit of dismissal, etc. of executives' misconduct. This is a system to ensure the research autonomy of government-funded research institutes in the field of science and technology.

Sortation
According to Article 5 of the Act on the Operation of Public Institutions, public institutions may be classified into public enterprises, quasi-governmental institutions, and other public institutions.


 * Public enterprises: public institutions with 50 or more employees and their own income at least 1/2 of their total income
 * Market-type public enterprises: public enterprises with assets of 2 trillion won or more, and their own income of 85 percent or more of their total income
 * Quasi-market public enterprises: public enterprises, not market-type public enterprises


 * Quasi-governmental institutions: public institutions with more than 50 employees and not public enterprises
 * Fund-managed quasi-governmental institutions: quasi-governmental institutions entrusted with the management of funds or management of funds pursuant to the National Finance Act
 * Commissioned quasi-governmental institutions: Quasi-government agency, not fund-managed quasi-government agency


 * Other public institutions: Public institutions other than public enterprises or quasi-governmental institutions

Designation
In principle, it shall be newly designated, de-designated, or classified within one month after the commencement of the fiscal year. However, if an institution meets the requirements to be designated as a public institution during the fiscal year, it can be newly designated, if there is a reason to change the designation due to privatization or integration, abolition, division of institution, or revision or abolition of related laws, it is possible to cancel or change the designation. The Minister of Economy and Finance shall have the authority to designate and shall be deliberated and resolved by the Public Institution Steering Committee after consultation with the head of the competent agency in charge of the affairs of the institution subject to designation. In this case, it shall be announced.

When designated as a public institution, management goals, budgets, operation plans, settlement statements, manpower status, customer satisfaction, job performance, board meeting minutes, and management performance evaluation results should be disclosed on the Internet website, and when requested to read or copy, it shall be heard. Among the disclosures, major matters may be separately standardized and integrated.

Operation
Public enterprises and quasi-governmental institutions must enter matters concerning the purpose, name, capital, stocks, executives and employees, accounting, etc. in the articles of association. Also, a board of directors shall be established to deliberate and decide on matters such as management goals, budgets, operation plans, settlement, issuance of bonds, investment and contribution, changes in the articles of association, debt guarantees, and bylaws. The board of directors should be comprised of not more than 15 directors, including the head of the agency, and a committee under Article 393-2 of the Commercial Act may be established. At this time, public enterprises with assets of more than KRW 2 trillion shall have an audit committee, and public enterprises and quasi-governmental organizations with assets of less than KRW 2 trillion may have an audit committee in accordance with the provisions of the Act.

The Korean government is obligated to guarantee autonomous operation in order to establish a responsible management system for public institutions.

Executive
The term of office of heads of public enterprises and quasi-governmental organizations shall be three years, and the term of directors and auditors shall be two years, and they may be reappointed on a one-year basis based on management performance and job performance. Standing members and employees shall not engage in business for profit, but may concurrently engage in non-profit business if they have obtained permission from the appointing authority or the head of the agency.

The head of the agency will be appointed in consultation with the board of directors based on a contract plan that includes management goals to be achieved during his/her term of office.

Even if an employee of a public institution is not a public official, he/she shall be deemed a public official in the application of a bribe or a mediation bribe under the Criminal Act.


 * a public corporation

Executives of public enterprises shall have directors and auditors, including the head of the agency, and the number of permanent directors shall be less than half of the directors. However, when an audit committee is established, there is no separate audit.

The head of the agency shall be appointed by the President at the recommendation of the head of the competent agency after a resolution by the Steering Committee, and if the total income is less than KRW 100 billion or the number of employees is less than 500, the head of the competent agency shall directly appoint. The permanent director shall be directly appointed by the head of the agency, and the non-executive director shall be appointed by the Minister of Strategy and Finance after a resolution by the Steering Committee. The audit is also appointed by the president at the recommendation of the Minister of Strategy and Finance after going through the same procedure as a non-executive director.


 * a quasi-governmental organization

Executives of quasi-governmental institutions shall be directors and auditors, including the head of the agency, and directors shall be classified into permanent directors and non-executive directors. The number of permanent directors of consigned quasi-governmental organizations with total income of more than 100 billion won and 500 employees, and the number of permanent directors of fund-managed quasi-governmental organizations with assets of more than 1 trillion won and 500 employees shall be less than half of all directors.

The head of the agency is recommended by the executive recommendation committee and appointed by the head of the competent agency, but the president directly appoints a consigned quasi-governmental agency with a total income of more than 100 billion won and 500 employees. Permanent directors are appointed by the head of the agency, and non-executive directors are appointed by the head of the agency, but non-executive quasi-governmental organizations with total income of more than 100 billion won and 500 employees are appointed by the head of the agency. The president recommends consignment-executive quasi-governmental organizations with more than 100 billion won and 500 employees, and fund-managed quasi-governmental organizations with more than 1 trillion won in assets and 500 employees.

Finance
The fiscal year of public enterprises and quasi-governmental organizations begins on January 1 and ends on December 31 of the same year as the government. The budget shall be divided into general budget rules, estimated profit and loss statements, estimated balance sheets, and fund plans, and if necessary, preliminary feasibility studies shall be conducted on new investment projects and capital investments. The budget bill shall be expanded by a resolution of the board of directors and shall be reported to the Minister of Economy and Finance, the head of the competent agency, and the head of the Board of Audit and Inspection.

A mid- to long-term financial management plan, including management goals, business plans, and investment directions, should be established separately if the asset size is more than 2 trillion won, there is a loss compensation clause in the underlying law, or if the debt is larger than capital.

After the end of the fiscal year, a statement of accounts shall be prepared and subjected to an accounting inspection by an accounting auditor.

Local relocation
On January 11, 2007, the Act on the Construction and Support of Innovative Cities Following Local Transfer of Public Institutions was enacted and implemented a month later to build an innovative city to accommodate public institutions. On January 16, 2004, before enacting the Innovative City Act, the No Moo Hyun government enacted the Special Act on Balanced National Development (enforcement on April 1 of the same year) and prepared the basis provisions in Article 18 of the Act. On August 5 of the same year, the Ministry of Construction and Transportation established a public institution local relocation promotion team to oversee related tasks.

By the end of 2016, 143 out of 154 institutions subject to relocation have completed the relocation, and the remaining 11 institutions are also expected to be completed within 2017. However, it has been argued that the Lee Myung Bak government and Park Geun Hye government have newly designated 152 public institutions in the Seoul metropolitan area, but have not established local relocation policies for them. Meanwhile, it will be mandatory for public institutions that have moved to innovative cities to hire 30% of those from cities and provinces in the future. Originally, it was only a recommendation clause, but the government plans to revise the law by converting it into a compulsory regulation and implement it from 2018.

Parachute and Recruitment Corruption Issues
There is a problem that retired public officials often get a job by parachute in relation to personnel appointments at public institutions. When the new regime is launched, politicians who helped the election are mainly appointed, and civil servants often come down in the middle of the regime. It is pointed out that such practices are problematic in the process of appointing the president at the recommendation of the head of the state weapons agency after a meeting of the Public Institution Steering Committee of the Ministry of Strategy and Finance. This is the result of the government's lack of personnel independence and unclear procedures for not disclosing who participates along with the ambiguous legal regulation of "a person with abundant knowledge and experience and CEO skills." To prevent such paratroopers, Rep. Park Kwang-on of the Democratic Party of Korea argued that the public institution's steering committee should be separated from the Ministry of Economy and Finance.

In some cases, the appointment was made by exploiting the opaque recruitment process and skipping the legally prescribed recruitment procedures such as public offering procedures. In 2014, the Korea Atomic Energy Culture Foundation appointed two former National Assembly aides and honorary retirees from the foundation as researchers without public offering procedures, and the Korea-Japan Industrial Technology Cooperation Foundation specially hired four retirees or related agencies. Lee Chan-yeol, a lawmaker of the People's Party, said, "Public institutions are highly favored by young people and highly competitive enough to be called 'God's Workplace' for their stable employment and remuneration. "We need to conduct a regular audit system so that hiring irregularities that take away young people's hopes and encourage deprivation can be rooted out," he pointed out. After the Moon Jae In government was launched, more cases erupted as the Board of Audit and Inspection and the prosecution conducted audits and investigations on public institutions. In order to prevent such hiring irregularities, they argue the need to eradicate parachutes first, but since the head of a public institution that holds the right to personnel affairs came by parachute, he has low moral qualms related to illegal hiring and is vulnerable to solicitation. Meanwhile, the Board of Audit and Inspection pointed out, "In order to prevent hiring irregularities in public institutions, it is necessary to improve internal processes and continue inspection activities."

In 2018, the central and local governments jointly established a pan-government special countermeasure headquarters to check the recruitment of 1,190 public, local, and public-related organizations, and found 4,788 points at 946 institutions, which is nearly 80% of the total. As it was revealed that the head of the Financial Supervisory Service, which is supposed to supervise the hiring scandal, was illegally hired, President Moon Jae In ordered to "hold those in charge of public institutions who are passive in dealing with the irregularities." This came as the issue of illegal passing of Kangwon Land grew, and Cheong Wa Dae said, "It follows the government's will and public sentiment to eradicate hiring irregularities." Since then, on March 13, 2018, the Korea Gas Safety Corporation decided to bail out eight of the 12 people who were illegally hired from the 2015-2016 recruitment, excluding four who did not want to join the company, for the first time.

Lax management problem
Even if debt increases and institutional evaluation is low, lax management is also under fire, with executives and employees' salaries continuing to rise. In 2016, Saenuri Party lawmaker Lee In-geun analyzed the "2015 Public Institution Status Manual" submitted by the Ministry of Strategy and Finance, and found that all top 10 institutions with high salaries were much higher than the president's annual salary of 212.01 million won as of 2016. Meanwhile, the Korea Investment Corporation and the Korea Institute of Machinery and Materials reportedly have an average annual salary of more than 100 million won per employee, while the Korea Institute of Aviation Safety and Technology and the Korea Institute of Standards Science have a starting salary of more than 40 million won. The Korea Rural Community Corporation had only 5 to 4 grades of integrity evaluation, and although debt is on the rise, the annual salary of the head of the agency and the executive director continued to rise. A representative example of such lax management is student funding to employees' children. However, many say that the results are insignificant even after the government attempts to normalize the lax management of public institutions. In 2016, the amount of free student support for employees and college students exceeded 37 billion won, an increase of nearly 60% from the previous year. Originally, student funding was decided to abolish the welfare of employees of public institutions to the level of public officials, but it is still being implemented. In addition, excessive support continues for condolence money such as marriage and death of children.

같이 보기

 * 대한민국의 공공기관 목록 (가나다 순)
 * 대한민국의 공공기관 목록 (주무부처별)
 * 대한민국의 지방공기업