The Ministry of Strategy and Finance issued the order at a meeting of its committee to oversee the operation of public companies, which was presided over by Strategy and Finance Minister Hyun Oh-seok.
The ministry demanded that the debt-stricken public firms take measures to cut more debts than previously planned, make a review of all projects they will carry out, sell assets and curtail benefits for employees, among others.
The companies facing criticism for heavy debts include LH, Korea Electric Power, Korea Gas, Korea National Oil and Korea Resources Corps.
According to the ministry, those 12 public firms’ debts total 412.3 trillion won, slightly smaller than the country’s total debt of 443 trillion won.
During the meeting, Minister Hyun said the government has begun to take steps to help sever the link between chronic lax management and soaring debts.
Hyun said the government will continue efforts to see to it that public firms return to normalcy.
“This (a set of those measures mentioned above) is not the end of reform. It is the beginning of reform for them,” he said.
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