A 'management improvement order' is expected to be implemented for seven institutions, including the municipal water supply of Mungyeong and the Gwangju Metropolitan City Seo-gu Management Corporation, which have shown poor performance in local public enterprise management assessments over the past three years. The Nutrient Pepper Distribution Corporation, Hanam Urban Corporation, Gwangju Seo-gu Management Corporation, and Mungyeong City Water Supply received the lowest ratings, resulting in a salary reduction for agency heads and executives this year, while general employees will not receive performance bonuses.
On the 6th, the Ministry of the Interior and Safety disclosed the results of the '2025 Local Public Enterprise Management Evaluation (2024 Performance).' The local public enterprise management evaluation comprehensively assesses the management system, leadership, key project performance, and management efficiency of 281 organizations, including local corporations and foundations, and assigns five grades from 'A' to 'E' each year. This year, efforts to address low birth rates, regional extinction, and soaring prices were also evaluated.
According to the evaluation results of the management evaluation team, 23 institutions, including Daegu Metropolitan Transit Corporation, Daejeon Urban Corporation, and Busan Tourism Corporation, received the highest 'A' grade. In contrast, the Nutrient Pepper Distribution Corporation, Hanam Urban Corporation, Gwangju Seo-gu Management Corporation, and Mungyeong City Water Supply received the lowest 'E' grade. Institutions receiving an 'A' grade can provide agency heads with performance bonuses of up to 400% of their salary, executives 350%, and employees 200%. However, those receiving an 'E' grade will see agency heads and executives have their salaries reduced by 5% to 10% the following year, and employees will not receive any performance bonuses.
Institutions that have consistently performed poorly in management evaluations will undergo management diagnosis. Targets are institutions that have received 'D' grade or lower evaluations in the past three years, have a high number of safety incidents compared to similar types, and have incurred deficits and declining operating profit ratios for three consecutive years. This has led to the selection of seven institutions, including Jeju Energy Corporation, Nutrient Pepper Distribution Corporation, Cheongdo Public Works Corporation, Pyeongchang County Management Corporation, Ulsan Metropolitan City Jung-gu Urban Management Corporation, Gwangju Metropolitan City Seo-gu Management Corporation, and Mungyeong City Water Supply. These institutions may face measures such as the dismissal of employees, reduction of project scale and organizational restructuring, and orders for corporate liquidation or privatization.
The Ministry of the Interior and Safety noted that it plans to reflect the 'Public Institution Management Innovation Plan' currently under discussion by the Presidential Committee on Policy Planning in future evaluations of local public enterprises.