In last year's evaluation of public institutions' management performance, 16 agencies, including SR Co. (SR), Korea National Oil Corporation (KNOC), Korea Broadcast Advertising Corporation (KOBACO), Korea International Cooperation Agency (KOICA), and Korea National Park Service, received grades of deficient or worse. The dismissal of the heads of the Government Employees Pension Service and the Korea International Cooperation Agency (KOICA) will be recommended.
The Ministry of Economy and Finance said on the 19th that it convened the Public Institution Management Committee under Deputy Prime Minister and Minister Koo Yun-cheol and deliberated and approved the "2025 public institution management performance evaluation results and follow-up measures."
This is the first public institution evaluation reflecting the Lee Jae-myung administration's policy direction. The assessment covered 88 state‑owned enterprises and quasi‑government institutions.
◇ Three more D and E institutions than a year earlier… no performance bonuses for heads and employees
Management performance grades are divided into S (excellent), A (outstanding), B (good), C (average), D (deficient), and E (very deficient). The evaluation comprehensively assesses key projects, national agenda tasks, safety, eco‑friendliness, financial soundness, and productivity, and this time also reflected institutions' management innovation efforts using artificial intelligence (AI).
In this evaluation, 15 institutions received an A, while B and C each went to 29 and 28 institutions, respectively. D and E, classified as "failing" because no performance bonuses are paid, went to 13 and 3 institutions, respectively. The number of institutions receiving D or E increased by three from last year. Meanwhile, no institution has received excellent (S) for four consecutive years since 2022.
The committee said Korea Broadcast Advertising Corporation (KOBACO) (E) and Korea International Cooperation Agency (KOICA) (E) received the lowest scores in the "key projects" category; Korea National Oil Corporation (KNOC) (D) and Korea National Park Service (E) scored lowest in "financial performance management"; and SR Co. (D) and Korea Internet & Security Agency (KISA) (D), among others, scored lowest in "industrial accident prevention."
For institutions graded D or E, the heads, standing directors, auditors, and employees will not receive performance bonuses for last year's results. In addition, next year's current expenses for these institutions are expected to be cut by 0.5% to 1%. For the SR auditor and the Korea Land & Housing Corporation (LH) auditor and standing directors—whose net income fell from the previous year and who also posted a net loss last year—a voluntary return of 25% of performance bonuses is recommended.
◇ Two heads to face dismissal recommendations… 23 heads warned over "serious industrial accidents"
Separately, the committee also evaluated the heads of institutions. As a result, six received outstanding, 52 average, 17 deficient, and seven very deficient.
Among the heads who received "very deficient," the chairs of the Government Employees Pension Service and the Korea International Cooperation Agency (KOICA) who are currently in office are expected to face dismissal recommendations. The heads of Korea National Railway, SR, Human Resources Development Service of Korea (HRD Korea), Korea National Oil Corporation (KNOC), and Korea Energy Agency (KEA) also received very deficient ratings, but they are not currently in office and thus are excluded from dismissal recommendations.
For the Government Employees Pension Service, weak internal controls, integrity, and performance indicator setting were cited as major factors for point deductions, while for KOICA, a lack of leadership by the head in integrated official development assistance (ODA) reforms and inadequate board operations were noted.
Of the 15 institutions where fatal serious industrial accidents occurred last year, 11 heads who were in office at the time of the accidents and remain in office received warnings. The heads of Korea National Park Service, Korea Gas Corporation (KOGAS), Korea Rural Community Corporation (KRC), Korea East-West Power Co. (EWP), Korea Western Power Co. (WP), Korea Water Resources Corporation (K-water), Korea Asset Management Corporation (KAMCO), Korea Electrical Safety Corporation (KESCO), Korea Electric Power Corporation (KEPCO), Korea Environment Corporation (K-eco), and KEPCO KPS were included. Twelve heads who received "deficient" in the head evaluation also received warnings. If a head receives warnings for two consecutive years, they become subject to a dismissal recommendation.