Eighteen public-sector organizations that have caused controversies due to excessive debt will save 40 trillion won (US$36.8 billion) in addition to what was previously planned.
Those with a greater amount of debt, such as the Korea Land & Housing Corporation and the Korea Electric Power Corporation, are attracting private capital and rescheduling their projects to this end, while the Korea Railroad Corporation is reselling its real estate properties in Yongsan, Seoul. At the same time, 38 public institutions in total are going to cut their employee benefits by 160 billion won (US$147 million) from last year’s amount.
The Ministry of Strategy & Finance announced on February 2 that the 38 organizations subject to close monitoring submitted their debt reduction and retrenchment plans to the government on January 29. Eighteen of them have to cut liabilities, and the other 20 are required to slim their business down the road.
According to the plans, the former group is to reduce their debt increment to 39.5 trillion won (US$36.5 billion) by 2017, which is 46.2% less than their long-term budget management plans made available in September last year. This is to cut their debt ratio from 286% to 267% during the same period.