South Korea’s finance ministry said Friday that 18 state-run companies were rated “lackluster” or below during its annual management assessment, noting it plans to order such firms to cut bonuses and take corresponding measures.
Under the comprehensive performance evaluation of 130 state-run companies, which divides them into six tiers, 14 were labeled “lackluster,” according to the Ministry of Economy and Finance. The four others got the lowest evaluation of “extremely lackluster.”
On the other hand, 19 companies were classified as “outstanding,” followed by 48 firms as “satisfactory” and 45 others as “average.”
No companies received the top evaluation.
The government has been making efforts to tighten the belts of public firms amid economic uncertainties.
“The evaluation is primarily aimed at assessing the progress made by public firms in restructuring their roles, structures, workforces and budgets, which has been a key objective of the Yoon Suk Yeol administration,” Finance Minister Choo Kyung-ho said in a statement.
Choo noted the government especially focused on checking the fiscal health of such firms to address public concerns.
The government will review dismissing the heads of five organizations that have received lackluster grades for two consecutive years, excluding those who have served for a short period, the minister said.
Source: Yonhap News Agency