state organizations-reform

state organizations-reform

S. Korea cuts more than 10,000 employees at state-run firms in Q1

By Kang Yoon-seung

SEJONG, April 20 (Yonhap) -- South Korea's finance ministry said Thursday it has reduced the staff of state-run companies by more than 10,000 workers through voluntary retirement and sold assets to tighten its belt amid economic uncertainties.

Around 290 state-run businesses let go of a combined 10,721 workers over the January-March period, according to the Ministry of Economy and Finance. Additionally, local state-run firms sold unnecessary assets worth 1.4 trillion won (US$1 billion) over the same period.

The amount accounts for 20.6 percent of the government's plan to sell 6.8 trillion won worth of assets by the end of this year. Property assets accounted for 1.15 trillion won.

State-run businesses also reorganized their offices to create more spaces for lease, which helped the country save 4.7 billion won in related expenditures, the ministry said.

The government reiterated the reduction of the workforce is based on voluntary retirement instead of layoffs. The country will also make efforts to reduce any impact on new recruitment.

This year, state-run firms plan to hire 22,000 workers.

The government also revamped or reduced 327 sets of welfare policies at 188 organizations, including low-interest loans and hotel vouchers, with a goal of improving 300 more by the end of this year.


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