South Korea to cut public sector after growth under liberal gov’t | Business and Economy

President Yoon Suk-yeol has promised to aggressively lower spending and promote non-core belongings at public enterprises.

South Korea’s new authorities has stated it can streamline public organisations, citing issues about effectivity after a fast enlargement of their operations beneath the earlier administration.

The federal government will lower the variety of staff and scale back bills on the organisations as step one in a deliberate collection of reform measures, Finance Minister Choo Kyung-ho stated in a assertion on Friday.

President Yoon Suk-yeol, who took office in May, has promised to reform the general public sector and stated early this month his authorities would aggressively lower expenditure and promote non-core belongings at public enterprises.

The transfer got here as Yoon suffers a sustained decline in approval scores, with the most recent weekly opinion ballot from Gallup Korea displaying on Friday his approval fell to twenty-eight p.c from 32 p.c per week earlier.

Choo stated a complete of 350 public organisations have been using 449,000 folks as of the top of Could and carrying 583 trillion gained ($449bn) in mixed liabilities on the finish of 2021, up 34 p.c and 17 p.c over the previous 5 years, respectively.

There have been issues among the many normal public and specialists about effectivity and profitability matching the fast enlargement in scale of public organisations, he stated.