Government to cut 109 public institutions in restructuring
The government unveiled a plan to cut 109 public institutions, about 20.8% of 524, and to fundamentally rethink public roles and operations to reduce overlap and protect fiscal sustainability. Key moves include reuniting five power-generation subsidiaries under a tentatively named Korea Power and merging Korea National Oil Corp. with Korea Gas Corp. into a tentative Korea Energy Resources Corp.; 15 infrastructure institutions will be restructured first. The plan also proposes merging four regional port authorities, splitting Korea Land & Housing Corp., and consolidating 11 overlapping institutions while reorganizing 83 subsidiaries. Officials warn of competition, financial and autonomy risks.
Government will cut 109 public institutions, about 20.8% of 524.
Context
The public sector has grown and public institution debt has risen sharply. The president said last year there were too many public institutions. The government now plans initial restructuring of 15 key institutions.
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