Gov’t to cut 12,000 public sector jobs

Dec 27, 2022, 08:37 am

AsiaToday reporter Son Cha-min

The government has announced a major restructuring plan to cut jobs at state-run organizations for the first time in 14 years. It plans to reduce costs by reducing about 12,000 jobs by reducing tasks that can be either transferred to the private sector or cutting unnecessary personnel.

Second Vice Minister of Economy and Finance Choi Sang-dae announced the plan during a session of the public institution steering committee held on Monday. The government plans to adjust 12,442 jobs or 2.8 percent of all positions at state-run organizations.

Korea Railroad Corporation (KORAIL) and Korea Racing Authority (KRA) cut 2.2 percent and 11.7 percent of their workforces, respectively. Korea Electric Power Corporation and Korea Land and Housing Corporation (LH) plan to reduce 2.1 percent and 2.4 percent of their jobs, respectively. The largest restructuring will take place at the Korea Expressway Corporation Service, which plans to cut 1,041 jobs or 16.5 percent of its workforce.

Under the plan, 7,231 jobs at 233 public organizations will be adjusted as non-essential tasks that can be transferred to the private sector or local governments, and similar or overlapping functions will be reorganized. In the case of the Korea Electrical Safety Corporation, its function of the electrical safety management service will be transferred to the private sector. Korea Electric Power Corporation will transfer on-site work such as meter reading, to a specialized subsidiary. Korea Expressway Corporation Service will reduce manpower in consideration of the increasing number of toll calculators.

In addition, 4,867 people from 228 institutions will be adjusted through organizational integration and departmentalization. In the case of the Korea Tourism Organization, it will merge Busan and Ulsan branches as well as Gyeongnam, Gyeongin and Gangwon branches while abolishing three overseas branches.

A separate batch of 4,788 workers from 223 public organizations will be reassigned with new duties over the period.

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