An ailing appointment system
Published: 19 Mar. 2013, 21:28
There is controversy over whether the government should really change the CEOs of public entities with every power shift. But if the new administration is determined to do so, it must do so correctly.
The first step is fixing the current “open recruitment system.” In theory, it’s an idealistic system, as a special committee must recommend three to five candidates for the top position before the government appoints one of them. But the system has often been abused. The Lee Myung-bak administration came under fire for using it for “parachute appointments.” The government not only put pressure on committee members but tried to conduct another round of open recruitment when its preferred candidates were eliminated from the competition.
The Lee administration put their favorite people in the posts of CEO, auditor and outside member of the board at government-run financial institutions. It sought to plant favorites in executive positions of public and private companies. The new government must put such malpractice to an end.
The Korea Institute of Public Finance’s latest report gives a clue. It proposed a full-fledged revamp of the way public corporations run the open recruitment system. The report also advised that the recommendation committee prohibit government officials from attending its meetings or record discussions at the meeting, and clearly state the reasons for any additional recruitment. The report also recommended public companies select auditors with expertise in finance and accounting. The suggestions correspond with the new government’s personnel philosophy based on a strict ban on parachute appointments.
with the Korea JoongAng Daily
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