Kim calls for management contract system for public corps.

President Kim Dae-Jung called Tuesday for the introduction of a responsible management system for the presidents and managers of public enterprises and the promotion of privatization or mergers of firms that are less competitive than private enterprises.

Presiding over successive meetings of cabinet and the four-sector reform monitoring committee at Chong Wa Dae, President Kim pointed out that of the four sectors, reform in the public sector has been the most sluggish. He went so far as to say the government should be ashamed of the stalled progress, Chong Wa Dae spokesman Park Joon-Young said.

President Kim, at the meetings, handed out five major tasks for the public enterprises: The employment of competent chief executive officers (CEOs) through open competitions, integration of their subsidiaries with the main companies or their privatization, establishment of a ¡°cyber-government¡± within the next three years, enhancement of productivity and establishment of managerial transparency.

The President asserted that starting next year, reforms should be steadfastly promoted in line with the strengthened systems and market principles.

At the same time, Kim sought the provision of positive support measures such as tax and financial incentives for enterprises to invest in research and development, set up an information industry among established companies, parts and strengthen the material manufacturing industries for small-and-medium ventures businesses.