[Editorial] Appointing Presidents at State Companies

Posted on : 2005-04-12 03:19 KST Modified on : 2005-04-12 03:19 KST

Two "incidents" at state corporations over the weekend suggest a lot to think about. The government has named Korea International Exhibition Center president Hong Gi Hwa has been chosen to head of KOTRA, making him the first president of KOTRA from within its own ranks since it was created in 1962. The position has usually has always been occupied by people from the Ministry of Commerce, Industry, and Energy or politicians. Meanwhile former Korea Racing Association (KRA) president Yun Yeong Ho has been arrested on suspicion of having received roughly W150 million from a facilities maintenance subcontractor. Both cases share a common denominator in that they make you stop and think about personnel management at state companies.

Personnel management is about choosing people who will do the job and choosing them fairly, but choosing the presidents of state corporations has not been done that way. Things do look better since there's a "president nomination committee" but the dominant view is that the government's preferences still influence the process. There has been no end to accusations of "parachute appointments." KOTRA gets a president from within its own ranks for the first time in roughly 40 years, but even cows will laugh at how many state companies have never had a president selected from among their staff. It is not difficult to imagine what a sinking feeling young people must get when they enter state run corporations and discover they cannot even dream of occupying the top position. The KRA's Yun ran for National Assembly and lost twice before he started preparing for the most recent election, for which he used the KRA to assemble the funds he needed for campaign activities in his electoral district. It was a fine example of the problem of giving someone a break by putting him in such a position, since he was someone whose interest was in politics while company management went to the back burner.

It is also a problem how unions at state companies ritually oppose appointments of people from outside and declare them to be "parachute appointments." That originates, however, in a sense of being used when high-ranking government officials and politicians have made off with the top positions. If there is going to be a climate in which anyone qualified, whether from within the company or from elsewhere, then correcting the problematic practices has to come first. It is not that there is no ongoing effort to reform personnel management at state companies, but one would like to see these two cases make the changes come faster.

The Hankyoreh, 12 April 2005.


[Translations by Seoul Selection (PMS)]

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