Gov't presses state firms for further restructuring

SEOUL, Dec. 7 (Yonhap) -- The South Korean government has ordered state-run companies to propose additional measures to streamline their business efficiency, including cutting down pay rolls, according to informed sources Sunday.

The government recently ordered public companies to resubmit a plan to boost
management efficiency, demanding specific means of cutting down workers and
reducing welfare benefits, according to multiple officials at different state
companies asking not be named.
Since his inauguration in February, President Lee Myung-bak has striven to
overhaul the bloated structure of state-run enterprises and other public entities
accused of loose and inefficient management and wasteful spending of taxpayers'
money.
Government officials confirmed the order, claiming "the original plans submitted
a month ago lacked substance."
"We've ordered companies to boost efficiency by 10 percent," said a government
official asking his name be withheld, emphasizing that new plans will have to
focus on cutting down the number of workers.
Last week, Lee instructed his Cabinet to speed up public sector restructuring,
citing the sluggish pace so far. He cited as exemplary the Korea Rural Community
& Agriculture Corp. (KRC), which proposed a phased 15 percent reduction of its
workforce.
"KRC's plan seems to be viewed as a guideline," another official at a state
company said, noting that slashing jobs is inevitable to reach a 10-percent
increase in efficiency.
A finance ministry official said that all state-run companies, excluding those
scheduled to be privatized, are required to resubmit plans.
"We're not implying companies need to cut jobs immediately. We're demanding that
they raise their efficiency by 10 percent in whatever manner is best, including
slashing workforces."