[Reporter`s view] Parachuting executives vs. public reform

A briefing to review a report on the 12 core reform measures in the four main sectors of Korean society was held on Tuesday in the press conference room at the Ministry of Finance and Economy.

In the reform of state-owned enterprises, the government called for the establishment of a system that encourages managerial responsibility and for a clean up of lax management.

A member of the ministry`s policy adjustment review board said, "The highlight of today`s meeting was the proposed system of managerial responsibility for the presidents of state-owned enterprises."

Much the heads of private corporations, the presidents of state-owned enterprises will sign management contracts in order to promote responsibility, and will be replaced should their managerial performance fall below an acceptable level. The government proposed the creation of a pool of qualified human resources in various fields and called for recommendations for replacements by experts without government affiliation.

Such a proposal is not new. On Jan. 27, then Planning-Budget Minister Jin Nyum said in his New Year¡¯s report to the President, "The heads of state-owned enterprises whose performances have fallen below a certain standard will be dealt with by the end of March." However, none of the officials were responsible for mismanagement, but stayed at their posts.

The Ministry of Planning and Budget, which has the responsibility to carry out reform of state-run enterprises, had frequently called for the establishment of a responsible managerial system and for the censure of sub-standard performance.

What is the reason for the slow pace of reform by a government that has so frequently pledged such measures? Perhaps it is because the very men who retired from the same government have now been placed at the head of these enterprises.

The committee to recommend the presidents of state-owned enterprises wrung their hands as the posts were filled with government cronies. These "unqualified presidents" with complete managerial authority had to shelve reform plans as they busily tried to pacify their labor unions. Many of the enterprises used the change in the president`s post as an opportunity to obtain bonuses and wage increases.

The "responsible management system" considered by the government as the "highlight" of the day is yet another rehash of what has been promised over and over. Shouldn`t the government first come clean with the reason why the reform effort has dragged on for so long?