Cheong Wa Dae to Push for Public Sector Privatization

Cheong Wa Dae is expected to push for the privatization of state-owned enterprises as planned.

An official of the presidential office told the Dong-A Ilbo in a telephone interview Friday that the privatization of state-run organizations will proceed as scheduled and the government won’t be just “going through the motions.”

The remarks came amid growing speculation that the Lee Myung-bak administration will back down on its plan to revamp the public sector in the face of the deteriorating approval ratings of President Lee.

On the fact that the right to decide on the privatization process has been delegated to relevant ministries from Cheong Wa Dae and the Ministry of Strategy and Finance, the official said, “To privatize public organizations, ministries that oversee the organizations should revise related laws and the privatization process should be controlled by ministries in charge. Considering all these, the government decided to have relevant ministries have a say.”

Regarding the decision to reconsider the privatization of Korea Electric Power Corporation’s affiliates such as Korea Power Engineering Company and KEPCO KPS, which were originally on the list of privatization, the official said, “The reason for the privatization of state-run companies is to provide the public with better services. Over the course of privatization, public hearings and listening to people from all walks of life are necessary. We believe that better ideas will come out during the process.”

“We will explore all our options to make the best choice. It doesn’t mean we are moving backward,” he stressed.

However, quite a few officials in and out of the presidential office are raising doubts over the success of the privatization project. After the resignation of Kwak Seung-jun, the former senior presidential secretary for social affairs who spearheaded the project, the government cannot afford to push through the privatization plan in the face of strong opposition from the people, they said.

mhpark@donga.com